| By :
Molly Wider
Banking is not as simple as it was even just ten years ago. With every account and transaction there seems to be a fee. The only way to avoid the fees is to keep a high minimum balance. For many people, not only is the minimum balance hard to keep up with, so are all the bank fees. For those looking for a few ways to cut back on the monthly charges, you may want to consider these suggestions. Up until now, banks have been able to 'give' preferred clients overdraft protection of varying amounts. This means if you are overdrawn on your own money, the bank has an egg of their money on which you can draw on and use however you like. For this service, they do however tend to charge high fees. According to the Centre for Responsible Lending, these charges can range anywhere from $5 to $34 per transaction. Some banks even charge a fee for every day your account sits in arrears. The Bank of America charges $35 if it determines an account has been in arrears for five or more business days. The U.S. Bancorp also has similar fees. They charge overdrawn clients $10 per purchase on any overdraft purchase of $20 or less (maximum of three per day) - which are down from their usual $19 to $37.50 fees. So if you use your overdraft protection three allotted times in one day, you will be hit with a $30 transaction fee plus additional interest at the end of the month. As of July 1, 2010 banks are no longer able to 'give' clients these overdraft protection accounts unless the client requests one or agrees to being given one. Having an additional $1,000 or $10,000 readily available can be enticing to most and puts consumers at risk of additional personal debt, not to mention the monthly interest and usage fees that come with them. If you were looking to save on your bank fees, you would be well advised to stay away from overdraft protection accounts. A different option may be to consider linking your personal accounts together, as in your chequing account with your savings account or a credit card account. In the event you do have to dip into additional money, at least this way it can be your own. Banks will still charge a fee, usually around $5 or $10 per transaction, but it is better than getting hit with the fees plus interest charges at months end. However, be aware if this is an option you are considering. The U.S. Bank offers to link customer accounts to what they call a reserve line of credit that charges higher interest. That interest is charged right away, meaning the moment you use it. Even if you pay your balance in full each month, with this option, you will already have been charged the interest. Balancing your checkbook is something that should be done at least once a month, if not every two weeks. To avoid needing such backup money, it is important for consumers to keep tabs on their account balances.
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