Overdraft and ATM withdrawal fees have risen a great deal since 2007, as have bounced check charges. According to a recent national survey, the average fee for a bounced check is $28.95, which shows a 2.5% increase over the last year. ATM fees for non-members have swollen even faster; a shocking increase brought the average withdrawal charge from $1.78 to $1.97 in just one year! That might not seem like much, but that rate of growth was higher than the rate of inflation. Fortunately, there are myriad ways to balance the effects of ever-rising bank fees.

More than half of all banks in America offer free checking. Members who opened their accounts many years ago had fewer options, but times have changed, and so have many banks. Now free checking accounts present golden money-saving opportunities to more people than ever before. All bank members have to do is make the switch, so long as they have the option. It’s important to note that free checking accounts are typically non-interest bearing, so not everyone will benefit from opening one. The opportunity is worth looking into.

Another way to battle rising fees is to monitor bank account information online. Some purchases may take a few days to post, but easy access still helps many to avoid overdrawing their accounts, saving them the frustration of overdraft fees. An even more effective method than close monitoring is bank account linking. To begin, one checking and one savings account are connected. When checking gets overdrawn, money from savings covers the purchase, and the transaction fee is minimal. Checking accounts can also be linked to credit cards.

In addition to evading overdraft fees, people should avoid racking up absurd ATM charges. Who wants to spend money when they don’t have to? Out-of-network ATMs should never be used; almost all of them charge for non-member withdrawals. Those who have the time and patience to wait in line can head inside their banks for free withdrawals. Grocery and convenience stores can also give cash back when purchases are made. Requesting large amounts at once makes it so that more withdrawals – and the fees that come with them – won’t be necessary for a while.

Throughout 2007, banks charged well over $30 billion in overdraft and ATM withdrawal fees. Keeping track of finances is an everyday challenge for many. Of course banks are going to take advantage of that! Most make up for it by offering overdraft protection through account linking, free ATM withdrawals from in-network ATMs, and even customer service representatives that might reverse the occasional fee. Nonetheless, at the end of the day, it’s up to members to take advantage of the safeguards their banks have to offer.

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