Five Surprising Fees Banks Use To Recoup Losses
Banks are very good at coming up with reasons to fee account holders.
That’s not news if you’ve ever owned a bank account, but a new report from Bankrate has unearthed some interesting ways banks sneak various fees into common transactions.
Why do banks feel the need to invent fees anywhere they can? Because most checking accounts aren’t profitable, and in fact can cost banks $250-300 a year.
To combat that loss, Bankrate cites a Pew study that found the of number of fees banks charge ranges from four on one end to 48 on the other, and the smallest charges were 10 cents while the biggest were $125.
Here are five interesting fees – some that may seem fair, and some that may seem a bit less so – that Bankrate says to look out for.
Human Teller Fee: This type of fee most commonly occurs when an online banking customer uses a teller to deposit or withdraw money, instead of an ATM. Bankrate cites $8.95 in monthly fees or a $10 manual withdrawal fee as two of the tolls banks exact through this method.
Returned Mail Fee: If you change your address, let your bank know. Some banks charge fees whenever mail containing a bank statement or account notices is returned to them, and Bankrate sites two examples of $5 and $6 dollar fees.
Charges For Redeeming Rewards Points: This one seems especially nefarious. Banks can charge you every time you cash in on rewards points or dollars – a $4 fee is listed here. That “free money” you think you’re spending might not be quite so free at all.
Early Account Closure Fees: This is a pretty reasonable one. Many banks penalize consumers for closing account within a 90 or 180-day period, with two referenced fees of $25.
Cash Deposit Fees: Some banks charge fees for clients depositing large amounts, such as $10,000 or more. Bankrate uses an example where a bank charged 20 cents per $100 dollars after the $10,000 mark, but odds are customers dropping that much dough into an account can afford it.
To read more Bankrate on surprising bank fees, click here.
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