Banking fees tend to buzz around your finances, waiting to sting when you least expect it. At least that's how it seems. Whether you have a single bank account or multiple credit cards, incurring fees can swell your spending and weaken your budget. But preventive measures can help you avoid them.
Here are four standard banking fees and tips to repel them.
Non-Sufficient Funds (NSF) Fees are charged to your checking account when the available balance isn't enough to cover part or all of a transaction. The fee may appear each time you attempt a transaction and there isn't enough in your account to cover the expense.
Here are some safeguards to avoid NSF fees:
- Monitor your spending and follow a budget.
- Sign up for low-balance alerts.
- Keep extra funds in your account.
- Transfer funds from a savings account before making unbudgeted purchases.
You can also avoid the fee by opting out of overdraft coverage. However, doing so means payments will be declined at the point of purchase.
If you're a SchoolsFirst FCU Member, you can choose from three overdraft protection options:
- Share Transfers is a no-fee service that automatically transfers funds from your savings or money market accounts to cover transactions.1
- An Overdraft Protection Loan make sense if you frequently use a debit card or checks to manage your finances. With no monthly service or transfer fees, this line of credit deposits the funds you need if your checking account balance can’t cover transactions.*
- Debit Mastercard® Overdraft Protection automatically covers debit card transactions when there isn’t enough money in your account.2 Unlike Share Transfers, it doesn't transfer money from another account to cover the transaction and you aren't borrowing funds as you would with an overdraft protection loan. Instead, the payment is covered by the Credit Union for a fee. You’re still responsible for depositing money into the account to cover the overdrawn amount.
Overlimit Fees Some credit card issuers allow you to go over your credit limit and process the transaction — for a fee. The Credit Union doesn't charge an overlimit fee on our credit cards. Instead, the amount of any transaction exceeding the credit limit along with the regular minimum payment must be paid on the next scheduled payment due date.
If you’re incurring overlimit fees, pay closer attention to your account balance. Spending more than your credit limit could cost you more than just a fee. Some credit card companies will automatically raise your interest rate and cancel your rewards points balance.
Take these steps to end these fees:
- Sign up for balance alerts.
- Request a credit line increase.
- Confirm your available credit before making a large purchase.
If offered by the credit card issuer, you may be able to avoid this fee by opting out of overlimit coverage. Be aware that doing so means payments are declined at the point of purchase.
Late Fees pop up on a credit card statement if you fail to make at least the minimum payment by the due date. Fees are added to the balance and increase the interest charged on the account. Read your credit card's terms and conditions, as late fees vary by issuer.
Avoid late fees by asking your creditor if they’ll change the due date so it occurs shortly after your payday. You can also set up automatic payments from your checking account so they arrive several business days before the due date.
ATM fees usually apply when you use a debit or credit card to withdraw money at an ATM. The ATM operator and the financial institution may charge you for this. Some banks and credit unions charge fees for using machines outside a preferred network. Since fees vary, review your card’s disclosure statement for details.
Our Members have access to fee-free ATMs across the country.3
*All loans and credit cards subject to credit approval.
- Money market transfers are subject to a limit of up to six electronic transfers per month.
- Debit Card Overdraft Protection Fees: We charge a $22 fee each time we pay an overdraft. A fee is charged when the transaction is over $10 and your account is negative more than $10. We limit overdraft fees to a maximum of three (3) overdraft fees per day. Negative shares must be paid immediately. Must be at least 18 years old to opt-in for this service. Whether your overdrafts will be paid is discretionary and we reserve the right not to pay. For example, we typically do not pay overdrafts if your account is not in good standing.
- $2 charge per withdrawal for non-SchoolsFirst FCU/CO-OP Network ATMs. Other financial institutions or merchants may charge for use of their ATM or POS terminal.