There are many different ways to reduce banks’ service fees that you pay. Service fees, which can be a monthly fee along with transaction fees, depending on your account, are based on the principle that customers should pay reasonable amounts for the services they enjoy, according to a report by http://www.cba.ca.
Do you know that there are many different ways to reduce the service fees that you pay to your bank?
Here are some tips on reducing your service fees and finding the account package that best meets your needs:
- Maintain a minimum balance: It is possible to avoid monthly service fees if your bank waives these fees when you maintain a minimum monthly account balance. If you have additional products with that bank (e.g. a mortgage or credit card), ask if your bank offers rebates on service fees.
- Ask for senior’s discounts if you qualify: Do you qualify for a senior’s account? Many banks offer free or discounted banking to those who are over 60. If your bank doesn’t know your age, you may need to ask for the senior’s discount. Check with your bank to see if you qualify. Seniors receiving the guaranteed income supplement are entitled to a basic bank account at no cost.
- Ask for youth or student accounts: Banks offer basic bank accounts with no monthly fees for younger customers and students. Check with your bank to see what accounts it offers.
- Use cheaper online banking services: There are accounts available that offer discounts or even free banking if you use only online services.
- Plan your withdrawals: How many times do you withdraw funds at a bank machine? If your account package has a limited number of withdrawals, make fewer but larger withdrawals to save on fees.
- Take advantage of cash back: Did you know that many retailers offer cash back options at no additional charge when you pay with your debit card? Pay for your purchases and get cash from the retailer to avoid extra bank transactions, or if you can’t make it to your own bank or your own bank’s machine.
- Avoid convenience fees: Use only your own institution’s bank machines. You will save on fees that the other bank machine owners charge to use their machines.
- Sign up for a low or no-fee account: Sign up for a low or no-fee account if you only have a few transactions each month. Use the online account selector tool to see if one of these accounts may meet your needs.
- Check whether your account package is still suited to your needs: If you use more than the number of transactions allowed by your current plan, you may be paying per transaction charges over and above your monthly package cost. A different service fee plan that may appear to cost a bit more each month may save you in the long run by eliminating extra per-transaction charges.
- Shop around: Shop around for a banking package with lower or no fees. It is easy to compare the banking packages available using the online interactive account selector tool available from the website. The tool compares different account packages from different financial institutions, so there is plenty of choice. It pays to shop around.
- Consider overdraft protection: Do you frequently write a cheque that bounces and pay NSF (i.e. not sufficient funds) charges? If so, you may want to consider applying for overdraft protection. The small monthly charge may turn out to be less than you are paying in NSF charges. And some financial institutions levy the overdraft charge only in months when you actually use the overdraft, so there can be additional savings there. Ask your bank or shop around to find an arrangement that works for you.
Remember, in a competitive marketplace, you have a great deal of control over the service fees that you pay. Talk to your bank, look at your banking habits, and compare account packages and services using the online account selector tool. You may be able to reduce your banking service fees.
All rights reserved. This material, and other digital content on this website, may not be reproduced, published, broadcast, rewritten or redistributed in whole or in part without prior express written permission from PUNCH.
Contact: [email protected]