Fees You Might Encounter With A Free Checking Account
A free checking account offers free banking services for you, but that does not mean that you will never pay fees with your new account. You can avoid paying all fees with a free checking account, though, but you must understand some of the fees you could possibly encounter with a free account. Here are several fees you might encounter that you should know about when opening a new account.
Overdraft Fees
The first type of fee is one that you can encounter with any type of bank account. It is called an overdraft fee. You will only incur this fee if you spend more money than the amount you have in your account. If you ever have a negative balance, the bank will charge an overdraft fee. The fee amount varies, but most banks charge at least $25 or more when this occurs. The best way to prevent this is by managing your account wisely. If your bank offers an app, look at your balance daily to ensure that you have enough money in there to cover your charges.
ATM Fees
The second type of fee you might encounter with a free account is ATM charges. If you get a debit card with your account, you can use it to make purchases anywhere you go. You can also use the card at any ATM machine to withdraw money. Your bank might provide some ATM machines that you can use for free. If you use these particular machines, you will not pay any fees. If you use any other machines, though, you might pay fees. The best way to avoid these fees is by using the machines that your bank provides for your use. You will never pay fees if you only use these machines.
Statement Fees
The other fee you might see on your statements is for statement fees. To get a free account, your bank might require that you sign up for paperless statements. If you do not sign up for these, your bank might charge a monthly fee. The best thing you can do to avoid these fees is to sign up for paperless statements. If your bank has this rule, you must follow it to avoid paying extra expenses.
You can avoid paying these fees if you manage your account properly. To learn more about your options and account types you can choose from, contact a bank today.