Saturday, October 2, 2010

Banking institutions get instant cash with fees increasing

Banking institutions and credit unions will never change financial institution costs because it is a huge source of immediate money. Nevertheless, nobody likes them or wants to deal with them. The banking industry uses fees for one of the largest sources of revenue there is. It is slowly becoming increasingly more complicated to deal with all of the new charge card laws making bank fees go up. There are a few things a person should always watch out for.

Bank fees charging more

There are now limits on how a customer can be charged and how much for services with new federal regulations. The major banks are all raising fees, as outlined by CNN. The new laws governing banking and credit cards in the CARD Act place limits on things like overdraft fees. So banks are creating new fees or raising rates on others to get just a little more of a pay day where they can. Bank of America just raised its minimum account balance as an example. If a customer dips below the minimum balance, the financial institution assesses a monthly fee for doing so.

Alterations in over-limit

Things have changed a bit with overdraft. A consumer has to consent to being in an over-limit program before banking institutions can charge overdraft fees. Protection programs cost a lot of cash. Over-limit protection comes in the form of linking and transferring for some banking institutions. This does not consist of all banks though. Checking that goes over could be covered by cash transferred from savings. Each transfer will cost you $10 if you financial institution with Wells Fargo. That price isn’t too bad. That’s when thinking about it is essentially a cash advance. Just having a checking account at Citibank costs a customer $30 a month. A cash advance can be needed by a consumer for not spending any cash at all.

Banks expected to do this

Everyone knows going into over-limit will get you bank fees. It is not anything new. Just do not go there. In the end, it can be better and cheaper. The further a person stays from these fees, the less could be paid to the financial institution.


CNN Money

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