If you can’t identify exactly how much you are spending on bank charges every month, you might not have the banking account that best suits your transacting needs or you may have adopted behaviour that is costing you a bit more than it should.
Ryan Prozesky, CEO of FNB Value Banking Solutions shares 10 tips on how to save on bank fees:
1.Choose the right account
Never choose a bank account merely on its monthly administration costs, but rather base the decision on your transacting needs to avoid incurring additional charges. For example, on a pay-as-you-use structured account you may be charged extra every time you make a transaction, while on a bundle offering you are able to perform multiple or unlimited transactions without incurring additional charges.
2. Avoid using another bank’s ATM
The bank fees charged for withdrawing funds at an ATM of another bank is higher than that of your own bank.
3. Bank on digital channels
Use digital and electronic channels for transactions whenever possible, as these are usually free or attract lower costs compared to using a bank branch. Digital channels also offer you the convenience of performing your banking at a time and place convenient to you.
4. Swipe your card
It is safer to swipe your card than to carry cash. Check if your bank offers unlimited card swipes at no additional charge. In addition, some banks have loyalty programmes that reward the client for swiping their card.
5. Avoid penalty charges
Always make sure there is sufficient money in your account to cover all purchases and transactions to prevent incurring penalty charges for failed transactions.
6. Overdraft facility fees
An overdraft facility helps you to meet those unexpected cash flow shortfalls, and avoid penalty fees due to insufficient funds.
7. Bank statements
Request your bank to rather email your statement to you instead of posting them, if you have access to an email account. Not only will they arrive much sooner, but you will avoid any charges for postal statements that some banks may levy and you will be helping to create a paper-free environment. You can always view you account on your bank’s digital channels to check your balances, transaction histories or download your recent statements free of charge.
8. Take care of bankcards
Be extra cautious with your bankcards, as some banks will usually charge you a fee for replacing them.
9. Monthly caps
On certain account bundles, your bank may offer you a number or value of ATM withdrawals for free, with additional charges for exceeding this limit.
10. Don’t ignore communication from your bank
Banks often review their account fees annually and offer you a breakdown of changes and adjustments. It’s important to thoroughly go through and understand these fee changes and how they impact the way you transact on a monthly basis.
Source: FNB. Image: Pixabay