There's no questions about it, bank fees have been going up steadily over the past decade or two. In fact, outside of gas prices, I can't think of too many things that have increased more in price. Bank of America encourages you to "keep the change," but in the meantime, it seems that they are keeping the dollars!
Back when I was in college, I worked part time as a teller at Glendale Federal Bank. No, they are not around anymore. If you remember this bank, I suppose I am giving away my age. They were taken over by Cal Fed Bank a number of years ago, which subsequently was taken over by Citibank.
When I was a teller (okay, this was the early 90s), the charge for bouncing a check was $12-15. Today, it's over thirty bucks at most banks. Then there's the fact that they're constantly trying to hit you up for various sorts of ID Theft insurance or Accidental Death insurance.
Bank Fees are avoidable, you just have to make sure you are navigating the process the right way. I'm not going to touch credit card fees, because that's a whole different topic. This applies mostly to checking fees. Based on my vast experience as a part time teller 15 years ago, here are my five tips to avoid bank fees:
1. Ask, but ask nicely
Most bank fees may be waived at the discretion of the branch manager, or another bank officer, such as the operations manager. If you feel that you deserve to have a fee waived, there is no harm in asking. But, there is a right way, and a wrong way to do it. Here is the right way.
First, you will have better success walking into the branch than you will on the phone. It will take more time and effort on your part, but that's partly why they will be more lenient with you. Second, don't walk in there asking immediately for a manager. The manager may not be available, and anyone else who has the power to help you may feel slighted by your outright request for the boss.
Last, and most important, be nice. From the security guard, to the teller, to the customers around you, and all the way up to the branch manager, be nice! A "please", a "thank you", even an admission of guilt, if warranted, will go a long way. Even if they don't waive the fee for you, continue to be nice and treat them with respect. Most banks have a space in the computer to write notes about clients. You don't want your notes to read, "VERY DIFFICULT AND RUDE. DO NOT WAIVE FEES!"
2. Be a lazy, irresponsible banker
Most bank fees are assessed for one of two reasons, irresponsible banking or convenience. The accounts that paid the biggest fees were always the ones with multiple, repeated bounced checks. The irresponsible banking customer is the one who not only bounces checks (at $33 or so each), but loses checks or lets their balance fall below account minimums.
Sometimes it is not worth your time to drive the extra couple of blocks to find your bank's ATM. But, if you want to avoid the extra fees, it's exactly what you should do. Even with today's gas prices, your bank would have to be pretty far for the drive not to be worthwhile.
3. Shop around
Each bank's rules are a bit different. Before you settle on a bank, make sure your bank of choice is consistent with the way you bank. Maybe they waive their fees if you have direct deposit, and you were already planning to set up direct deposit. Well, I would consider that a good match. Maybe the bank you have a mortgage with just happens to waive checking fees for mortgage holders.
For some people, the ubiquitousness or proximity of ATMs and/or branches is most important. Whatever your needs are, making sure the bank you use meets those needs is a sure way to reduce headache (i.e. fees) later.
4. Consider Internet Banking or a Credit Union
Internet banks, such as ING Direct or Emigrant Direct, tend to have fewer fees and higher savings rates than traditional "bricks and mortar" banks. Credit unions are also known to have the same. However, if it is important for you to be able to walk in to a local branch, this may not be a good option for you.
5. Establish a banking relationship
In the age of on-line banking and ATMs, this is a lot harder than it once was. During my days at Glendale Federal, ATMs has become widely accepted among younger bankers, but those who were accustomed to taking their business inside the branch were slower to adopt ATM usage. Those were the customers who often became the "regulars." Think Norm walking into Cheers. But we were a bit more formal. So, instead of "Norm!" you would hear calls of "Mr. Peterson!"
Quite frankly, when a fee needed to be waived, Mr. Peterson, who came in once a week, knew our names, drank our coffee and read our newspaper, was more likely to receive leniency than you are, despite your first name basis relationship with our ATM.
Of course, I'm not suggesting that you make your bank your new hang out for the eventuality that you may need a $10 fee waived. There are other ways that banks view your "relationship." The number of accounts that you have, your collective balance with them, and the number of years you have been a customers are all very important. And, of course, responsible banking years are better than irresponsible banking years.
Bonus Tip: Don't buy it!
This one is more commonly associated with credit cards. But have you noticed that every time you call you bank about some minor issue, they turn it into a sales call?
"I'd be happy to provide your available balance. While I pull up that information, I have noticed that you don't have identity theft protection on your account. It's free for the first three months, I'll just go ahead and add that to your account."
"Nooooooo!"
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