Evasion Strategies: How to Skip Monthly Maintenance Charges
When it comes to personal finance, every penny counts. One issue that many people deal with is how to avoid monthly maintenance fees on various accounts. These small charges can add up over time and take a significant bite out of your budget. If you’re interested in keeping that hard-earned money where it belongs—in your pocket—then this article is for you. This article goes through various effective ways to skip these annoying fees.
Understanding What Monthly Maintenance Fees Are
The first step to solving any problem is understanding it. Monthly maintenance fees are small charges that companies, especially banks, apply to your account for its upkeep. This charge is not for any special service; it’s just a fee for having an account. Let’s say you have a checking account with a bank that charges a $5 monthly fee. This means that over a year, you’re losing $60 just for the privilege of having an account. That’s money that could be better spent or saved.
Chime states, “Not all banks charge a monthly maintenance fee. But many large financial institutions do. Banks will tack on different amounts for their monthly maintenance fee, and it’s part of how they make their money.”
Switching to a No-Fee Account
One straightforward way to skip the monthly fees is by switching to a no-fee account. Many banks offer checking and savings accounts that don’t charge monthly maintenance fees. These accounts may have fewer features, but if those features are not something you use anyway, why pay for them? Making the switch usually involves going to your bank and filling out paperwork. The bank employees can guide you through the process. Once it’s done, you can enjoy the benefits of an account without the monthly drain on your resources.
Maintain a Minimum Balance
Many banks will waive the monthly maintenance fee if you keep a certain amount in your account at all times. The exact amount varies from bank to bank, but keeping a specific minimum balance is a surefire way to avoid these fees. It may be tricky if you’re living paycheck to paycheck, but even then, knowing that you’re saving on fees might motivate you to keep that minimum balance intact. Plus, having some money always in your account is a good safety net for emergencies.
Link Multiple Accounts
Another clever way to skip monthly fees is to link multiple accounts at the same bank. Many banks offer fee waivers for customers who have more than one type of account with them. For example, you could link your checking and savings accounts or even add a joint account with a family member. By doing this, the bank sees you as a more valuable customer and is more likely to waive those pesky fees. However, make sure you understand the terms and conditions that come with linking accounts so you don’t end up with other unexpected fees.
Use Automated Services
Automated services, such as direct deposits and online transfers, can also help you avoid fees. Many banks offer a waiver on maintenance fees for accounts that receive regular direct deposits. This is because automated transactions require less manual work from the bank, saving them money, which they pass onto you as no fees. If your workplace offers a direct deposit option for your salary, this could be a great way to not only get your pay quicker but also save on fees.
Monthly maintenance fees may seem small, but they can add to a significant sum over time. By taking proactive steps, such as switching to a no-fee account, maintaining a minimum balance, linking multiple accounts, or using automated services, you can keep more of your money for yourself. Financial well-being is not just about making more money; it’s also about smartly managing what you have. By applying these strategies, you can take a significant step towards better financial health and save yourself from the stress of unnecessary fees.