Save money by taking these steps to cut bank fees to zero

Bank fees lose you money and can cause you stress. The good news, however, is that they can be reduced and even eliminated completely. You just have to know what to do.

The biggest money-losing culprits for most Americans are overdraft fees, ATM fees, high interest-rate charges, and foreign transaction fees. Together, they can cost you a lot of money over a year.

Steps you can take

Here is a look at ways in which you can take steps to remove these sources of additional losses—not to speak of anxiety—out of your financial life.

Avoid overdraft fees

• Keep a regular check on the balances in your accounts.

With today’s technology it is easy to check daily on your balances, yet surveys show that more than half of Americans say they have no idea what the balances are in their bank accounts at any specific time.

By keeping a regular check, however, you will know when your bank account balance is getting low and overdraft fees could kick in. You can transfer money from your savings account to ensure that does not happen, even if it is just to tide you over until your next paycheck or you have more money in your checking account.

• Set up alerts on your checking accounts.

Most online bank accounts allow you to set up a variety of notifications about your account. One that is vital is an alert that indicates your checking account has entered low or even negative territory. You can usually set the level at which you want to be alerted.

If you receive a notice during the day that your account is in negative territory, you still have time to transfer money into your checking account from, say, your savings account to avoid overdraft fees. Although your account might enter negative territory for a few hours, it is the balance at the end of the day that counts to the bank. Ensure the balance is in positive territory, no matter how small.

• Revisit your overdraft protection status

Some banks are now waiving overdraft fees in some cases. Find out what those circumstances are with your bank accounts or what you need to do in order to avoid paying the fees, even should you overdraw your account.

Although this can help to save you money, try to resist overdrawing your account whenever possible; fees might go back up as some were waived during COVID.

Avoid ATM fees

• Get to know the fee-free ATMs in your area.

When you need cash always make sure you withdraw it from a fee-free cash machine, which generally are your bank’s machines or your bank’s partner machines.

Go online to find out where the fee-free machines are near to where you live or work. If you have to draw from an ATM, but cannot go elsewhere to avoid the fees, it might be a good idea to withdraw more cash than you need immediately. In that way you avoid having to visit the ATM again and incur even more fees.

• Choose cash back when paying with a debit card.

Another way to withdraw cash from your checking account without incurring fees is to do so when you shop at a grocery or convenience store using your debit card. In most cases the store will allow you to draw smaller amounts, such as $20, or more. The amount comes out of your checking account—as would that at an ATM—but you do not incur any fees.

Avoid high interest-rate charges.

• Pay your credit cards in full every month.

The most common way people incur interest rate charges are on credit cards. Clearly you can avoid these charges if you always pay your cards in full every month. If you cannot do so, however, seek out ways in which you can lower the charges.

• Transfer balances

A popular way to lower interest rate charges on a credit card is to transfer an unpaid balance on your card to another card that offers an attractive rate to do so. Some card companies also offer special promotional low interest rates on future purchases. The key in those cases, however, is to make sure you pay off the amount within the stipulated time limit, which usually is a year. After that a much higher interest rate will click in.

• Negotiate with your bank

In some cases you might be able to negotiate a lower interest rate on a regular loan with your bank. It’s usually worth a try.

Avoid foreign exchange fees

You can do so by obtaining a credit card that is free of foreign exchange fees. Clearly you would then use it every time you buy something online from another country or when you travel to another country.