By Mitch Rice
Most of us are working toward handsome savings that can be used later on as per need but a lot of this can be chipped away due to hefty banking fees.
It is typical for banks to apply some sort of charges as a return for their service and especially because such institutes help to keep your money safe. However, over the past few years, it has become more evident that banking fees continue to increase as the liking of people to stash their savings in an account increases.
Here’s What Most Online Surveys Tend To Say About This
When different agencies came together to discuss and analyze the connection between banking fees and savings, they found out that about 48% of the respondents had to pay heavy charges on their money that they had put away in a savings account.
Furthermore, the surveys disclosed that this forced people to either shift to cost-effective alternatives when facing a poor credit situation or to simply resort to saving money in the form of cash. About 18% of respondents confessed that they preferred holding their savings as cash. They further elaborated that they took this decision when “surprised” by a bank fee at some point.
Below are some of the shocking facts and figures that surfaced as a result of various surveys.
- More than 79% of users keep theirs money safe in either a savings or a checking account.
- 48% of them agreed to being charged some sort of unexpected fee at some point in their lives.
- The most commonly charged fee was that of ATM. This was about 22%. Others included 14% of maintenance fees, 9% late payment fees, and almost 14% overdraft fees.
- ¾ of the participants in the survey shared concerns that the fees were more in the past 12 months as compared to the previous year.
Where Do We Go From Here?
Taking into account what the additional charges can do to your savings, most of us would be looking for strategies to avoid fees and pick an account that is capable of doing that.
The first step should always be to choose a financial institution that can protect your creditworthiness. Moreover, you should check that it is FDIC-insured and has sufficient physical branches to support you when needed.
As a new customer, you should try to develop good relationships with the banker. If they permit, you can discuss your credit situation with them and see if they offer any additional resources that might be helpful. In the best-case scenario, you will be able to score an account with a lower or no fee!
Furthermore, new customers get confused about whether they should opt for a checking account or a savings account. It is not always about working with a reliable bank, you also have to keenly decide which type of account would be most helpful for you.
- Checking accounts are meant to allow for easy transfers of money. They completely support debit card use, checks, and instant cash withdrawals.
- Savings account, as the name suggests, are meant for savings and there they work with a little more complicated protocol. In a nutshell, taking out money from a savings account is not easy.
- Money Market accounts are most useful if you are looking for something in between savings and checking accounts.
- Retirement accounts make sure you save enough by not allowing you to take out money without paying a penalty. They are meant for people who don’t find it easy to stash away cash.
The final decision comes down to how much you wish to save and how easy it is for you to put away money. If you want to practice self-control on strict terms then savings accounts are the best option. Some people opt for free checking accounts as well but these do not offer interest on savings so that’s a huge drawback.
There is no doubt that banking services have become costly over the year but there is little that can be done since we will always be in the need of a safe spot for our savings.
In this regard, it is important to explore alternatives such as financial institutions that work with the least number of fees or those that allow you to open an account on easy terms. Once you have decided which bank to go with, don’t hesitate to get in touch with their customer support team and see if you can avail of any more discounts!