Bank Fees

There had to be something nasty eventually, didn't there. There is not a financial institution in the country that can afford to offer you a huge range of access channels and not charge a fee or two to help run them.

The problem is, a lot of people feel that banks are sometimes making a bit too much money out of fees. This may or may not be true, but it certainly does sting when you go find yourself $40 short each month and your statement tells you the bank has taken it in fees!

The good news is, by adjusting your banking behaviours, there are ways to avoid most fees if not all of them. Once again, the key is being informed and sticking to your strategy.

All financial institutions charge fees in different ways. Some charge account keeping fees – a flat rate for keeping your account open each month. Others charge transaction fees – fees of varying amounts (depending on the channel that you use) that are applied for each transaction you perform…Some charge both!

You should call your bank and ask them to explain which of their fees apply to you, and how you can get that monthly fee bill down. You may even find that certain financial institutions have fee free accounts for children, school and uni students.

In the meantime, here are some fairly universal generic tips:

• Avoid too many trips to the ATM or EFTPOS – It is possible that you will get charged $1–$2 every time. Draw out more money to last you the week and have the discipline not to spend it all at once. Or perform two transactions in one by getting cash out when you purchase through EFTPOS
• Track balances through Phone and Internet Banking – not the ATM. Generally, internet and phone banking attract the lowest fees of any channel, often they are free. So utilise them where possible.
• Avoid Insufficient Funds Episodes – It can't be that hard to keep track of your balance. Each time you try to use EFTPOS or an ATM and are rejected, it costs.
• Avoid going into the branch unless it's for deposits – It's a sad fact that it costs more to talk to a human than a machine! Avoid performing withdrawals, transfers and balance enquiries in the branch, they seem to cost the most. Deposits are normally free.
• Cheques Cost – The humble cheque is a bit of an expensive proposition these days and can attract fees in the higher brackets.
• Bpay is Great for Bills – Normally BPay is free, so it costs much less than a cheque when paying bills, and is often cheaper than a Direct Debit too.
• Keep within your free transactions – Some financial institutions give customers a quota of free transactions each month. Try to keep within this limit.

Basically, it really helps to be self-disciplined with your cash, because you can withdraw it in one lump, reduce fees and happily follow your budget. But don't be scared to shop around for a financial institution and account with the most economical fee arrangement.

You'll find the fees for most financial institutions on their websites. Click here to see QTCU's current fees and charges.

Think you know your bank account inside out now let's graduate to the next step... Investing!