Anyone who has ever had a bank account knows that it's not always a fun thing to do. One big pain is trying to figure out what your bank's special fees are and when you might have to pay them. The basic idea behind bank fees is easy to understand.
It's how banks charge you for all the extra services you may or may not know you're getting. These can be unfair for some customers because bank fees are often hard or even impossible to get back, except in the most extreme cases. This means that a simple mistake can add up to more and more charges until the user loses a lot of money.
To get a better idea of what bank fees are and why they are charged, we should look at the many ways they can be applied. One well-known case is when a bank account goes overdrawn. There are sometimes no bank fees for an authorised overdraft. In this case, the user just needs to set up a temporary borrowing plan with their bank. This will let them be slightly in the red for short periods of time without getting hit with big fees.
The one that almost always hurts the user's bank account is the one that wasn't authorised. If you miss one number and end up ten dollars in the red after writing a check, your bank will soon start charging you high interest rates and large overdraft fees.
The worst thing a person who uses a bank can do is think that many of the "services" it offers are free. There is a chance that some banks will charge fees even for small mistakes. These problems can be as simple as using your ATM card more than your contract lets you in a year or writing more checks than you were given for the whole year. If you have to use an ATM from a different bank, that is a very bad thing.
In this case, it's likely that both banks will charge you fees. These can add up to a lot of money very quickly. Most people would think that these are just normal services that come with any package. When talking to a representative, this isn't much of a reason to change your mind. Not all the time is ignorance bliss.
The best way to avoid getting charged for things you didn't expect is to read all of the papers and contracts that describe each service for your account. By being careful with your money, it can really pay off to read the fine print.
If you want a bank account, you need to know about the different fees that banks can charge. Just keep in mind that there is no such thing as a free lunch. Your bank is not going to be your worst enemy or your best friend. When they do you a favour that they don't have to, they have little reason to do it for free.
Read everything they give you, and be sure to read everything you sign. Be aware of the fees your bank can charge, and handle your money in a way that takes them into account.
