TOP DRAWER ARTICLE

 

Money in the Bank
by
HL Carpenter

 

Here’s question one of a quick quiz: Name the most popular service charges imposed by banks.

If you said ATM and nonsufficient fund fees, give yourself a passing grade.

Now for question two: How many other fees can you name?

To help you keep your passing grade, here’s a list of fees you may be less familiar with.

• Check copies. Asking for copies of checks or duplicate bank statements can trigger this charge.

• Checks returned with statement. Some banks will still return your checks with your statement, but the service is usually not free.

• Point of sale. This may also be called a PIN (Personal Identification Number) fee, and is typically assessed when you use your PIN instead of signing for purchases.

• Expedited bill pay. Using the bank’s last-minute plan to speed payments to your creditors can be almost as expensive as late payment charges.

• Excess transfers. Many banks limit monthly transfers from your savings to your checking account or vice versa. Transactions over the limit can result in this fee.

• Return deposit. When a check you deposit bounces, you’re out the amount of the check plus a bank surcharge.

• Stop payment. Expect a hefty service fee for stopping a check before the bank honors it.

• Other nuisance fees. These include charges for cashing a check, talking to a teller or calling customer service too often.

Not all banks charge these fees, but if yours does, it might be time to think about switching to a different financial institution – or not. If you opened the account within the past three to six months, here’s one last quiz question to consider before you jump ship:

Does your bank charge a fee for closing the account early?

 

Originally published June 2009.

 

This information should not be considered legal, investment or tax advice. Top Drawer Ink Corp. does not provide legal, investment or tax advice. Always consult your legal, investment and/or tax advisor regarding your personal situation.

 

 

Last update: December 30, 2009