Saturday September 24, 2011 23:19

Bank Fees Up in 2011

Posted by Steve Drago as Bank Fees and Debit Cards

If your consumer bank fees and debit card fees have not gone up recently, they will soon. Congress passed the Dodd-Frank Act which significantly reduced the amount merchants pay banks for electronic transactions. The banks are offsetting the revenue loss by changing free checking to fee checking of a few dollars a month. Banks are increasingly also charging monthly fees when a consumer uses a bank debit card.

So what can you do?

Review the number of bank accounts you really need and eliminate ones you don’t need. See if you can avoid a monthly fee by maintaining a minimum monthly balance. My business checking was free and it was going to cost $5 a month as a maintenance fee. By maintaining a $500+ monthly balance I avoid the $5 monthly fee and forgo about $.20 monthly interest.

Cancel your bank debit card to avoid the bank fees and use a credit card.

Some banks will reduce the fees if you have direct deposit of your paycheck or government check. Some banks will reduce the fees if you maintain a certain minimum balance each month.

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