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Last Updated: Jul 2nd, 2008 - 21:15:22 |
(ARA) – When was the last time you actually stepped into your local bank branch? Can’t remember? You’re not alone. Millions of Americans now do their banking online or through ATMs, rather than in person, because it gives them convenient 24-hour access to their funds.
But this convenience comes with a cost – sometimes a very high cost.
An average ATM fee for non-account-holders is about $1.78, according to Bankrate.com’s 2007 Checking Study. Add to that the fee your own bank may charge for using an ATM they don’t own, and you can pay close to $5 in fees for that $20 cash withdrawal you just made.
Additionally, some banks charge for online banking privileges. Nearly 80 million Americans now bank online, according to eMarketer.
“In many ways, technology has proven to be a windfall for the banking industry,” says Todd Sipe, president and CEO of Thrivent Financial Bank. “Consumers can, however, minimize the fees and surcharges they pay to use banking technology by making smart choices and using the industry’s natural competitiveness to their advantage.”
Here are some tips for reducing technology-related bank surcharges:
* Not all ATM fees are created equal.
The best way to save on ATM fees is to limit your transactions to machines owned by financial institutions where you have an account. However, when you’re traveling, that may not always be possible. Surcharges can vary widely – Bank of America recently announced it will charge $3 for non-customers who make withdrawals at most of its ATMs.
Thrivent Financial Bank allows its customers to use any ATM in the world without penalty and will reimburse them for fees imposed by other banks on up to 10 transactions a month.
* Take advantage of debit card flexibility.
If it’s not possible to always make cash withdrawals from ATMs owned by your bank, consider getting cash back when you make a purchase using your debit card. Merchants from department stores to supermarkets now offer the option of getting cash back. As long as your bank doesn’t charge for debit card transactions, cash back amounts to a free ATM transaction.
* Make the most of your online banking.
Online banking has surpassed ATM use and rivals phone use as a preferred method of banking for millions of Americans. In 2007, 79.7 million people used online banking and that figure is expected to climb to 101 million by 2011, according to eMarketer.
While many financial institutions charge for online bill pay, some do not. “Comparison shop for financial institutions that offer this valuable service free of charge,” Sipe says. “Online bill pay is free at Thrivent Financial Bank and many other institutions.”
* Learn how to avoid overdraft charges.
Before you swipe that debit card or submit your online bill payments, be sure you understand your bank’s policy on overdrafts. Keep careful track of your debit card expenditures and ATM withdrawals – not tracking these transactions is a fast way to overextend yourself.
Be sure you know how your bank processes checks and check card transactions, as this may result in overdraft charges. Checks may be processed sequentially by check number, or by the amount of the transaction, first processing from smaller to larger sums or from larger to smaller sums. Also, keep in mind how long it takes your bank to process a deposit. Some can withhold deposited funds for several days. Thrivent Financial Bank makes deposited funds available in just one business day.
Find out if your bank will allow you to open a line of credit that can be linked to your checking account. That way, if you overdraw your funds, the overage can come out of the line of credit. “It’s almost always cheaper to pay a little bit of interest than to pay an overdraft fee,” Sipe advises.
To learn more about surcharge-free ATM transactions, free online banking and other financial products, visit www.thriventbank.com.
Courtesy of ARAcontent
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EDITOR'S NOTE:
Bank products and trust services offered through Thrivent Financial Bank, 2000 E. Milestone Dr., Appleton, WI 54919-0006 (Member FDIC, Equal Housing Lender), a wholly owned subsidiary of Thrivent Financial for Lutherans.
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