The last time I paid a fee by my bank was likely around 2012, 2013. It was an overdraft fee which I got all the time because I wasn’t always good at managing my money. However, knowing this fee, among others, were avoidable, I made it a goal to learn better habits so I could nix all bank fees and never get charged by the bank again. You can stop burning cash too!

Account fees – Unnecessary!

If you opened an account planning to pay a monthly service fee, then I must ask why? There are tons of ways to avoid these fees.

1. If you use direct deposit for your paycheck, that USUALLY waives the monthly service charge. Your bank charging you regardless? Leave him!
2. If you’re a student, a lot of banks have student accounts that waive monthly service fees. You just have to provide proof of enrollment.
3. Find a free bank account with no monthly maintenance fees. Nerdwallet updates its list of these banks regularly.

Bonus tip: Most savings accounts I encounter limit you to six withdrawals a month. I’m sure it’s the result of some legal mumbo-jumbo but this one is super simple. Don’t make more than six withdrawal in any given month. The first time, they usually just give you a warning. I know because I’ve been there. I just made adjustments to avoid it occurring again.

Overdraft fees – The Worst!

Overdraft fees – when the bank charges you for being broke. According to Credit Karma, overdraft or non-sufficient funds fees (NSF) average around $34. For people who overdraft frequently, this can cost you hundreds of dollars a year. If you overdraft multiple times a year, log into your account and add up how much that cost you over the last year. If you make it your determination to avoid these fees from now on, you can count this as extra money that you can put towards your financial goals.

Sometimes, things just happen. If you do not overdraft frequently, did you know you could just call the bank and ask them to do you a solid? When I was charged by the bank, I just called and asked if they could waive the fee this time. It worked every time because almost everything is negotiable. Just be friendly with the staff member you’re talking to. Remember, they’re doing you a favor.

If you catch your overdraft before the bank charges you, you can run to your bank and deposit cash to cover how much you’re in the red. Then it’s as if it never happened.

How I Nixed All the Fees

I have never been charged a monthly service fee by my bank ever. I use direct deposit which makes me immune to these fees. They simply never occur as a result.

In order for me to stop over-drafting, I did a few things. One of the most impactful moves for me was creating a cushion in my checking account that would cover most any expense I didn’t account for properly. I determined my cushion by seeing how much I was over-drafting by. Based on this, my cushion is $200. Still to this day, sometimes the account dips below that because life is lumpy. As a result, this cushion has decreased so much stress for me because I don’t have to scramble to go deposit cash at the bank.

Another tool I used was setting up my bank app’s balance alert notifications. If I dip below $50, I get a notification. Since my cushion is $200, if I dip below $50, then I messed up. So I go check my account to see where I made the error and move money around if needed.

Unavoidable fees

There are a few fees for services that banks provide that are seemingly unavoidable, such as wire transfer fees. If this is a service you must use, instead of the free options like Zelle, then shop around to see if you can save money per transaction.

To-Do List

• If you have a bank account charging you fees, then find out if there are requirements you can meet to avoid them.
• If your bank doesn’t have a free option, find another that will let you bank for free. While you’re doing that, make sure you pick an account that doesn’t charge you for or reimburses you for ATM fees.
• Set yourself up for success and avoid over-drafting by setting bank app notifications and creating a cushion.

Now it is your turn. What are your banking challenges? What fees do you wish you could chuck? Share in the comments below.

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