If you’ve balanced your checkbook recently, chances are you’ve been hit with a few (or many) unexpected fees by your bank.
According to the Federal Deposit Insurance Corporation, fees only accounted for 3% of a bank’s earnings ten years ago. Nowadays, it’s more than half of their total income.
A great example of this is overdraft fees. Say you have $50 in your checking account and make a purchase with your debit card for $25. Two days later, a $50 check (that you forgot about) hits your account, as well. The bank will process the check first and hit you with a $30 insufficient funds fee and then process your debit card charge and hit you with another $30 fee. A simple mistake ends up costing you $60!
So, how do we escape these ridiculous fees? Not very easily, unfortunately. Unless you have a history of never taking your account into overdraft and have a great rapport with a bank employee who has the authority to reverse the charges, you’re paying the fees. Your best bet is to balance your checkbook regularly to avoid costly mistakes and take your money to a credit union.
Credit unions are non-profit banking organizations that are owned by their members. They have very few hidden fees and offer higher interest rates than most banks. Even better news is that there are a number of credit unions exclusively for military and their families. Navy Federal Credit Union, Marine Federal Credit Union and NavyArmy Federal Credit Union are a few examples.
For more information on credit unions or to find one near you, visit www.creditunion.coop
