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10 Tips: Get the most from your bank

Fees tend to be annoying, but bank fees can be especially galling. ATM fees can hobble the budgets of even the most prudent planners. How can you turn the tables and get the biggest bang for your buck from your bank?

By Laura T. Coffey, Times Correspondent
Published January 27, 2008

Fees tend to be annoying, but bank fees can be especially galling. ATM fees can hobble the budgets of even the most prudent planners. How can you turn the tables and get the biggest bang for your buck from your bank?

1 Pick the right bank. Shop around. Ideally, you're looking for free checking, direct deposit, online bill paying, decent interest rates and many convenient branches and ATMs.

2 Inquire about minimum-balance requirements. Many banks charge monthly fees for failing to maintain their minimum account balances. If you're not likely to meet those requirements, take your business elsewhere. Or, find out whether you can get the fees waived if you have your paycheck deposited directly and if you don't do face-to- face business with tellers.

3 Beware of this so-called courtesy. Unless you say no to "courtesy overdraft protection," you could end up paying as much as $39 for each overdraft from your checking account. Link your checking account to your savings account, credit-card account or home equity line of credit.

4 Plan in advance. Going out on a weekend night in an unfamiliar part of town? Do a quick online search to see whether your bank has ATMs there. If you use another bank's ATM, you'll probably be double-whammied with fees from that bank and your bank.

5 Make wise money moves overseas. If you've used ATMs to withdraw cash while traveling overseas in recent years, you may have been hit with enormous fees. Credit-card currency-conversion fees may have walloped you. Before leaving town, visit this Bankrate.com site - www.bankrate.com/brm/news/cc/20050624b1.asp - to find out which credit card to use while traveling, and check with your bank to see whether it has ATM alliances with banks in the countries you plan to visit.

6 Earn more from your savings account. Rather than relying on a traditional savings account that provides yields in the 0.2 percent range, consider an online-only savings or money market account with annual percentage yields between 4 and 5 percent. You can find FDIC-insured savings accounts through the "Compare rates" section on Bankrate.com.

7 Avoid credit-card debt. The worst fees will haunt you if you fail to pay off your credit-card balances in full and on time each month.

8 Be careful with debit and check cards. Be diligent about logging transactions in your checkbook register, and use online banking so you can check balances often and make sure nothing funny is happening in your account.

9 Investigate credit unions. If you're in the market for a car loan or another type of loan, credit unions tend to offer lower rates. To shop around for a credit union near you, visit www.creditunion.coop.

10 Know where to turn. If you've been treated unfairly by a bank, try calling customer service. If that doesn't help, find the bank's main phone number and call a senior vice president. You can complain to regulators at the Federal Reserve (www.federalreserve.gov/feedback.cfm and the Office of the Comptroller of the Currency (www.occ.treas.gov/customer.htm).

Laura T. Coffey (laura@tentips.org)

Sources: "Gotcha Capitalism: How Hidden Fees Rip You Off Every Day - and What You Can Do About It," by Bob Sullivan; Marketwatch.com; Bankrate.com.

[Last modified January 25, 2008, 21:28:30]