Should you look for a new checking account?

Associated Press Modified: October 17, 2012 at 6:00 pm •  Published: October 17, 2012
Advertisement
;

Quick. How much are you paying every month just to have a checking account?

And for ATM Fees?

If you're not sure, it's time to find out.

Checking account fees have soared over the past year as banks try to boost profits. Depending on your situation, it may be time to jump to another bank.

The average monthly service fee on checking accounts that don't pay interest is now a record $5.48, a 25 percent increase over last year, according to Bankrate, a financial data publisher.

The fee for using an ATM outside a bank's network rose to $2.50, a 4 percent increase.

Overdraft fees, which you'll pay if there's not enough money in your account to cover a check or debit card payment, rose to an average $31.26, up 1.4 percent.

If you're paying hefty fees, you don't necessarily have to switch banks, says Greg McBride, a senior financial analyst at Bankrate. Ask your bank if there is anything you can do to get your fees waived. Some banks will give you free checking if you set up direct deposits into the account or maintain a minimum balance in your accounts.

If that's not possible, it might be time to explore other options.

_____

DECIDE WHAT YOU WANT

You need to look for a bank that suits your specific needs. Sometimes that means sticking with a bank that charges a checking account fee.

"It's not all dollars and cents," says Kevin Kautzmann, a certified financial planner at EBNY Financial in New York.

If you think you'll need to sign up for multiple products, such as mortgage or a car loan, you have to decide if you want a bank that offers all those things or use multiple banks.

Bigger banks have more branches, making it more convenient if you prefer speaking to someone. But if want to get to know the people who work at your bank, a smaller one might be right for you.

_____

SHOP AROUND

Several websites enable users to search for checking account offers in their area. NerdWallet.com and Bankrate.com lay out the fees that could be charged and also lists any rules, such as direct deposits or minimum balances that you need to follow in order to qualify for free checking.

| |

Advertisement


Trending Now



AROUND THE WEB

  1. 1
    Check out the Thunder postseason playlist
  2. 2
    VIDEO: Blake Griffin dumps water on a fan
  3. 3
    Oklahoma City Thunder: Grizzlies guard Nick Calathes calls drug suspension unfair
  4. 4
    Dave Chappelle Reveals Shockingly Buff New Look
  5. 5
    Peaches Geldof Funeral to Be Held on Easter Monday
+ show more