Now a days, the banking industry is getting dominated by the big traditional banks and you will be surprised to know that they are making a noticeable amount of profit from the fees they are charging you.
Over the past few years, there have been a steady hike in those fees and now, the charges are at recordable.
Here are few ways by which your bank is probably ripping you off too without your even noticing it.
- They charge you Overdraft fees –
Now a days, on an average, a traditional bank account holder pays nearly $100 as bank fees according to some researches and if you ever have overdrafts, you will probably have to pay a lot more.
Overdraft fees are incurred when you spend more money than you have in your account and banks typically charge about $35 per instance. This implies that you can be charged more than one time for over drafting on a single day.
When many modes of spending will draw money from a single account then you would probably loose track of your balance and end up incurring a huge amount of fees unnecessarily.
- They Charge you maintenance fees –
Many banks charge you a monthly maintenance fees in order to cover the costs for maintaining the account and certain perks that may be added on to it like the overdraft coverage, no charges for using ATM outside the system, cash back on spending and so on. A number of these perks cost the bank some money and this is a way to cover those costs.
You need to do simple math to check if the perks outweigh the fees and you are staying on the winning side.
If your bank is not providing you with such facilities and adding extra charges for the same along with the maintenance cost, you might be needing to reassess your bank account.
- They charge you ATM fees –
There are two types of ATM fees . Many times ,you will incur fees from withdrawing money from an ATM because it is owned by a separate organization from your bank. This is called the surcharge Fees .
Secondly, your bank may charge fees on top of that as a passive way to encourage you to use their own machines this is called the transaction fees.
In any of the ways, the one who stays in the loosing side is you because it is you whose account will get deducted.
The average fees for using an out of network ATM has reached to a height of $4.72 which is 33% up over the past decades says Forbes.
4.They pay you either very low or no interest –
With the very low interest rates now a days, some banks do not even bother to pay you interest on the deposits you make this is because they need to pay for the bricks and mortar locations so they try to cut off expenses by not providing the customers with interest they deserve while making deposits. If some banks do they make sure that the rate is low enough that it does not hamper the budget of the bank.
5. They do not bother to give you cashback on purchases –
The bank shares some of the merchant fees with the consumers in order to incentivize people to use their cards while making payments rather than cash which earns them no rewards. But most of the banks now a days do not bother to avail you the facilities of cashback on purchase even if you already have a cashback reward program.
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