5 Signs Your Bank Is Actually Costing You Money
Written by
Laura Bogart
Edited by
Molly Sullivan
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Your bank exists to help you save your money — or even grow it, over time. So, it seems odd that it should be costing you money. Yet, as you stare down at your bank balance or your ATM sheet, the math ain’t mathin’. Your spending habits haven’t changed, so you’re wondering if your bank might somehow be the culprit.
It’s not a far-fetched assumption. Sometimes, even the smallest, most innocuous-seeming fees build up over time. Or you’ve been banking at the same place for a while and realized that you’re not getting the best interest rates possible. It happens. To help you figure out what could be going wrong, GOBankingRates investigated some common signs that your bank is costing you money.
You’re Dealing With Excessive Hidden Fees
For supposedly “hidden” fees, these surcharges sure do have a way of depleting your bank account. GOBankingRates has done some extensive reporting on these pesky fees before, but it never hurts to keep them uppermost in your mind when reviewing your bank statements starting with the monthly service fee.
This kind of fee is particularly insidious because you’re being charged to keep your account open. Ranging from $5 to $20 (at least), it can really add up. You could also be charged for having a low balance.
Then there are those overdraft fees. It’s easier than you might think to spend or withdraw more money than you have in an account, and depending on your bank, you could be hit with a fee as high as $30 to $35 per transaction. This is bad enough on its own but just wait until you’re dealing with a 10-car pile-up of overdraft fees coming in one after the other.
When assessing whether your bank is demolishing you with fees, you’ll also want to look for things like nonsufficient funds fees, foreign transaction fees, wire transfer fees and ATM withdrawal fees.
You’re Not Getting High Interest on Your Savings
Your savings account should be more than a glorified piggybank. If you’re not finding a way to grow your money through higher interest rates, you’re not getting the best value out of your bank — and that could cost you money in the long run.
If you’re stuck in a regular savings account, you’re missing out on the opportunity to earn real interest on your money through a high-yield savings account. You can generally find high-yield savings accounts with more competitive APYs (or annual percentage yields) at online banks instead of brick-and-mortar establishments.
If your savings account is with a traditional bank, it’s time to review your APY and compare it to the options you’d get at a digital bank.
You’re Dealing With Poor Customer Service
The scenario you’ve been dreading finally arrives: You’re out with friends at a park, and, when randomly checking your bank account online, find that someone using your account has just charged thousands of dollars’ worth of sneakers across the city. Panicked, you call your bank to freeze your account before more damage can be done. Only you’re put on hold. Or you deal with someone so rude and unhelpful that the hold music would have been preferable.
Poor customer service is more than just an annoyance. If you can’t quickly resolve major issues like a security breach, you can be out of a lot of money — and quickly. But even when you’re not in crisis mode, the ability to speak to a knowledgeable and compassionate customer service rep can help you answer questions specific to your situation and make more informed financial decisions that could guide you in growing your wealth.
Your Bank’s Technology Leaves Much To Be Desired
Gone are the days of keeping a checkbook in your briefcase or purse, and your bank should reflect our new digital reality. Sure, most banks have a website or an app. But if those online resources don’t do much more than tell you your balance or share some marketing copy, they could be setting you back financially.
When your bank doesn’t offer features like online bill pay, smooth digital fund transfers or resources for tracking your transactions, you’re not only limited in your ability to master smaller financial transactions, like paying bills on time, you’re also not able to get a comprehensive view of your finances — making it harder to change bad habits.
You’re Not Getting the Range of Products You Deserve
OK, so your bank lets you buy a certificate of deposit or mutual fund. Sounds good, right? Well, not really — not if that CD has a low yield or that mutual fund is expensive and underperforms. Then your bank’s financial products are actually hurting your financial growth.
And if you’re trying to build good credit, or repair your existing credit, it can be difficult to qualify for a personal loan or a car loan through your bank — making it even harder to regroup financially.
If you’re not getting the most out of your bank, it’s time to shop around for a new one. You deserve the best service and products that can help you grow your money over time.
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