Banking is another place where you can easily save or lose money. Not just where you bank, but how you bank.
Many large banks have tons of fees associated with them, not to mention minimum balances. Going under these balances, even for one day, will cost you a monthly fee. Checks are seldom free, and usually only with certain account types will you get them at no or reduced cost. ATM charges are the worst, most banks will charge you for using another ATM on top of the charge you get at the ATM in question. Overdrafting your account will set you back between $25-$45 at most banks. These fees can be avoided by only using ATM’s associated with your bank, keeping the minimum balance in there at all times, and having your accounts protected with overdraft protection offered at most banks. Of course, nothing substitutes good old fashion common sense and balancing your check book.
You can also have an account at a Credit Union. Most CU’s don’t have such restrictive account minimums, nor do they charge monthly fee’s in many instances. CU’s are NON PROFIT, that means that any monies they collect over their opperating costs get distributed umong the members in some way. They also usually have a provision for lifetime membership, even if you leave whatever employement, geographical area, or club you were in to get membership in the CU in the first place.
Last bit of advise here, going back to the overdraft issue. Beware of restaurants and gas stations!!! Anywhere you swipe your card first and figure out how much you are paying later (ie, swipe at the pump then pump the amount of gas you want, or give the waiter your card, then decide how much of a tip to write in). They hold a portion of your money, for gas stations it’s usually one dollar and for restaurants it’s usually around 10% above the bill amount. They will then submit the actual charge later in the week. The result of this is that you think that you have already paid for the food or gas, in the case of gas the full charge then hits the account and you weren’t expecting it, causing an over draft in some cases, or in the case of the restaurant, the hold drops off your account and you suddenly have a few extra bucks, then the real charge hits after you’ve spent the same money twice.
