Financial Planner

Checklist: Reducing Bank Fees

Things to do this weekend with your money

Increasingly, banks rate their customers based on the fees and interest they pay (see “System Lets Banks Identify Most Profitable Customers” by Edmund Sanders in the July 21 Los Angeles Times). But a consumer’s goal should be to avoid paying unnecessary bank fees.

4 Today: Review the fees you regularly pay your bank, including monthly account fees and fees paid for ATMs, bill paying, Internet access and bounced checks. Add up the yearly cost and decide whether it’s worth exploring alternatives. Start with the bank’s Web site or a call to the bank’s customer service department to see whether the bank has other options.

4 Saturday: Small changes in your banking behavior could reap big rewards. For example, the bank might waive your monthly fee if you use direct deposit or maintain a monthly minimum balance. Many banks also have ATM-only accounts that offer free checking in exchange for doing your banking electronically. Agreeing to let the bank store your canceled checks, rather than receiving them with your monthly statement, could also save you money.

4 Sunday: Credit unions, small community banks and Internet-only banks offer a viable alternative to big banks by charging lower fees, paying more on savings deposits and offering lower interest rates on loans. Many credit unions and e-banks also reimburse customers for ATM fees charged by other banks, which helps the smaller competitors make up for not having large ATM networks.