The three fees that most people get hit with are now increasing. Overdraft, Out-of-Network ATM withdrawal and Late Fees are all on the rise. Overdraft: The average overdraft fee was $25 and has now been raised to $27.50. Out of Network ATM fees: Average was $3.10 and has risen to $3.50. Late Fees: $34 is now more like $38.
So why the change? The banks are still feeling the effects of whats going on in our economy. Congress has recently passed a legislation limiting their ability to raise interest rates. This is a way for them to make up for the lost revenue.
What can you do? There are some things you can practice:
a. Only use your bank owned ATMS. While this is not always possible nor convenient, it could save you much of your hard earned money. Charles Schwab and E*Trade are great choices to use if available as they do not charge out-of-network fees.
b. Set up Automatic Pay for any bills that allow. These automatic payments will never be late and will give you piece of mind.
c. Set reminders in your Calendar a week or two before your payments are due.
d. Make it a habit to check your bank account regularly. Have you ever rolled your eyes because that $3 cup of coffee ended up costing you $$30? You cant get mad at Starbucks, its your own fault.
A ton of money is spent annually on these unnecessary charges. Why not think twice before you spend? Especially in this economy....second thoughts before spending are always a good idea.