The fees and charges we pay to our banks can add up over time. Considering that many of us use the same banking institution for years or even decades at a time, paying even just a few dollars more in fees each month can end up costing us a lot of money.
After all, it’s easy to keep doing business with the same institution, since switching banks can take a bit of time and effort. But in some cases it may be worth considering making the switch. There are many online banking institutions that have successfully transitioned from the traditional bank branch-centric business to a thriving online-only banking business.
Here are some of the categories of expenses you’ll want to evaluate and compare when deciding whether it may be better to do business with an online bank.
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You might be able to avoid these fees in a couple of different ways, including by maintaining a higher average balance or minimum balance, by having other accounts at the same bank, or by using direct deposit, but then you’ll need to make sure you’re always meeting those other obligations. Many online banks offer truly free accounts without charging monthly account fees.
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When considering an online bank, inquire as to what type of overdraft protection they offer. Remember that if you become overdrawn on your checking account; you’ll not only face fees from your bank, but potentially also from the merchant that you tried to pay.
If you’re willing to do a little research, and put in a little work to move your business, switching your accounts to an online bank could save you money.
Tags: Banking Advice, Online Banking, saving money