It Pays to Read the Fine Print
by Brenda Estrella
Almost everyone wants to save, but when you’re making just enough to live (or maybe not enough), it’s sometimes tough to figure out exactly where to cut corners. In today’s economy, people need to think creatively and be disciplined if they want to stretch a dollar. There are many different ways that you can save money and one of the easiest is to look at the fine print.
Financial institutions offer an array of products that may seem confusing, but if you inform yourself and know what you’re looking for the selection process becomes a lot easier. Below is a list of points you should be aware of.
DID YOU KNOW . . .
Some financial institutions charge you for actually going into the bank?
Recommendations: Deposit checks and withdraw money through the bank’s ATM, check your balance online or by phone, set up direct deposit so that your salary goes directly into your bank account.
Most financial institutions charge you monthly “maintenance” fees just for having an account with them?
Recommendations: Shop around to see if there are any financial institutions offering accounts with no monthly maintenance fees. Many banks new to town offer this feature as a way to initially bring in customers. If they all have fees, make sure that you pick the account with the lowest fee, which still fits your needs.
Some accounts require a minimum monthly balance and will charge you if your balance goes under that figure?
Recommendations: Find out if there are any minimum balances that need to be maintained in your account. If there are any balances, make sure to keep that amount in your account at all times. If all else fails, shop around for an account that has no minimum monthly balance requirement.
Many banks will waive monthly maintenance fees if you direct deposit your paycheck?
Recommendation: Go ahead and set up direct deposit, it can only help you.
Some financial institutions only allow a certain amount of checks to be drawn from your account for free and start charging for every extra one?
Recommendations: Shop around for the best checking account terms. Plan ahead and figure out about how many checks you will need to write per month in order to choose an appropriate account. Keep track of the checks that you’ve written, so that you don’t exceed the limit.
If you write a bounced check, you will get charged an overdraft fee (usually $30) and will also have to pay the vendor you gave the check to?
Recommendations: Create a weekly budget and stick with it. Keep track of the money you spend and write everything down. If you’re getting charged overdraft fees, ask your financial institution about overdraft protection.
Financial institutions can charge you for using ATMs, both in and out of their network?
Recommendations: Only use ATMs that are in your bank’s network (find out their locations). Look for ATMs that charge a nominal fee (no more than $0.75).
You can be charged every time you check your balance inquiry at an ATM?
Recommendations: Call your financial institution's phone center to find out your current balance or go online to check. Also, keep good records of your transactions so that you know exactly how much money you are able to use.
The best way to save is to do it automatically?
Recommendation: Figure out how much you can afford to save each month and have it automatically transferred from your checking account to a savings account.
