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Letter to the editor

Tips to tame your bank's bite

A new study shows that fees are increasing.

By BECKY BOWERS, Times Staff Writer
Published September 29, 2007

Feel like your bank makes more withdrawals from your checking account than you do? It's getting worse, says a study of checking fees by Bankrate.com.

Since banks aren't likely to back off this lucrative source of cash, try these tips from Bankrate.com to keep your money where you put it.

AVOID OTHER BANKS' ATMS: If you're away from home, get cash back with a debit card purchase instead of paying up to $3 a pop, plus your own bank's fee - on average $1.25.

KNOW YOUR ACCOUNT BALANCE: One bounced check now costs an average of $28.23, Bankrate.com reports. That makes a careful record of checks, online payments and transfers, and debit card swipes a must. Use your bank's online access to check the available balance. Seem overwhelming? Get overdraft protection linked to your savings account, which is inexpensive or free.

SKIP INTEREST ACCOUNTS: The average balance to avoid a monthly service fee has soared to $3,317, up 25 percent compared with last year. Why keep that much money in an account with a yield of just 0.32 percent? If you're carting that much cash, pick a high-yielding money market or savings account at 5 percent, and pocket an extra $150.

[Last modified September 28, 2007, 22:58:01]