Struggling through tough economic times is always stressful, for consumers as well as the lenders.  Many individuals are choosing to pull their investment monies out of the stock market and put all of their finances safely into a bank account.  As times are getting tighter, banks are also changing their fee structures and, if we don’t read the fine print and be sure to follow the rules of our savings institutions, we can easily find that we are spending more money in overdraft and transfer fees than we gain in interest.

ATM Transactions

Most banks provide overdraft protection on the consumer’s checking account, which means that if you make a payment or conduct an ATM transaction for which the funds are not actually in your account, the bank will still make the payment on your behalf.  This service, though, is not without consequence.  Most banks charge at least $30 for each overdraft payment they make. 

In addition, if you have money in a savings account, many banks will automatically transfer your funds from savings to checking to cover your payments at a lower per transaction fee of roughly $7.  Unfortunately, if the bank makes a savings transfer and then still has to issue an overdraft because the exhausting of your savings account is still not enough to cover the payment, you will be hit with both the $7 transfer fee and the $30 overdraft fee.  If your finances are continually in this state of paycheck to paycheck, it is more advisable to keep your money under your mattress, as it would take a very, very large balance in your account to gain $37 of interest in one month with the current interest rates.

Avoid the Fees

Very simply, know the rules of your bank and do all you possibly can to follow them.  Find out how long it takes for a deposited check to clear, and if you will be charged the overdraft fee if another payment comes in before a deposited check is through the clearing process.  Find out if there are any minimum balance fees on your accounts, and shop around for the best savings interest rates as well as the lowest fees.