Paying bank fees is a highly complex thing. Traditional banks know this, and that’s why they usually take advantage of the small print and the practically invisible asterisks in the contracts to make it difficult for them to be understood and to let various charges go unnoticed.
It is impossible to avoid all bank fees. However, you can minimize your banking fees using these smart strategies.
1. Review each product offered to avoid bank fees
When bundled together, service prices are cheaper. But the ideal is to observe, individually, each product offered by the bank.
Often, customers hire items they don’t use just because they are included in the package.
Make a list of what services you need and look for a package that includes them. For example, Scotiabank Basic Bank Account offers two free Interac e-Transfer transactions per month. Therefore, opening a Scotiabank Preferred Package Chequing that offers unlimited free Interac e-Transfer transactions per month may be unnecessary if you don’t make more than two free Interac e-Transfer transactions per month.
Requesting the issuance of a weekly statement at the electronic terminal may also be unnecessary, and receiving chequebooks in the mail. Instead, print at the ATM to reduce bank fees.
2. Use Interac e-Transfers instead of cheques
The Interac e-transfers are more convenient, and you will avoid paying for the issuance of chequebooks.
For example, the HSBC Premier Chequing Account offers unlimited withdrawals and deposits, including FREE Interac e-Transfer fees.
Also, ask to receive your statement online instead of the paper version. You will save hundreds of dollars annually in addition to doing something for the environment!
3. Keep the Minimum Chequing Account Balance
To avoid monthly bank account fees, some banks require you to keep a minimum balance in your chequing account.
For example, there is no monthly fees for the HSBC Advance Chequing Account for the first six months. And later, when you maintain a $5,000 minimum balance in combined deposits and investments, including chequing, savings, RRSPs, TFSA’s, and more.
If you want to stay with your bank and avoid the monthly fee, consider maintaining the minimum balance to qualify for a fee waiver.
4. Check your statements monthly to avoid bank fees
Review your bank statement carefully every month.
Look for any rates listed that you didn’t expect.
If you think your bank has made a mistake, don’t hesitate to contact the customer service centre. Even if it’s not a mistake, you can ask the clerk to explain in detail how they charge the fees and how you can avoid them.
5. Consolidate your accounts to avoid bank fees
Many banks offer reduced rates to customers who have a combination of accounts, whether checking or savings, checks, and mortgages.
In particular, you can save on check fees or fees that can arise if your balance turns red when you link your checking account to a savings account at the same bank.
For example, there are no monthly fees with the HSBC Advance Chequing Account when you hold a personal mortgage of $150,000 or more.
Check with the bank that holds your loans or even your insurance carrier to see if your bank offers accounts with benefits such as reduced fees for having multiple products with them.
6. Get the most out of every operation
Many bank accounts limit the number of transactions you can do without paying additional fees. So, if you realize that you are about to reach the transaction limit or that you have exceeded it, try to withdraw larger sums each time to reduce the number of withdrawals and the costs involved. Alternatively, you can open a Scotiabank Preferred Package Chequing Account that offers unlimited debit and Interac e-Transfer transactions.
In conclusion
Before you know it, bank fees can add up. However, there are many good options you can apply to avoid paying monthly bank fees.