One of the easiest ways to save on bank fees is to bank with a community bank or credit union. Many of the fees for overdrafts, overdraft protection, low balances, maintenance fees, etc. are less than traditional banks or don’t exist at all. After you’ve joined a community bank or credit union resolve to watch your account a little better. Take advantage of those alerts that will text or email you when your balance is low, so you don’t earn an overdraft fee. Lastly, get to know the people that work in your branch. Smaller financial agencies tend to have more discretion about reversing fees, etc. One of the best things you can do to improve your financial situation right now is to join a community bank or credit union.

Part Two: Reader Question

I keep getting overdraft charges on my account. If I go over even $1 I end up with $30 in fees? WTF?

Okay, I can tell that you’re frustrated. There are two things going on here. The first thing is that you are spending more money than you have in your account. Own up to that. YOU are spending more money than you have. Secondly, the bank is charging you an exorbitant rate to “front you” the money and there is no way to opt out from taking that loan once you have spent more than you had in the account.

Let’s take a look at your spending habits. If you are being charged for overdraft fees more than once a year (for a mistake in calculations) that’s a problem. If the mistake is a one time thing, go into your branch and speak with an Account Manager. More than likely the Account Manager will be willing to reverse the fee because you are a good customer. If you are a serial offender, we need to take a closer look at your spending habits and your account balancing. What? You don’t write everything down that you spend and subtract it from what you have to make sure that you have enough money to cover the checks you’ve written and cards you’ve swiped? I won’t get into it here, however I will suggest that you start balancing your checkbook more regularly or think about using free account software such as Quickbooks or Office Accounting.

On the part of the bank, they are like the mob. You sign up for a “free” account and are charged every fee in the book for almost anything imaginable. Take a look at the Fee Schedule from your bank if you don’t believe me. You can’t tell the bank not to loan you the money, but you can make sure you always have the money in the account for any purchases you make plus a little cushion to avoid the fee altogether.