How much is too much when it comes to paying bank fees? The answer is: anything greater than $0.
The variety in the types of bank accounts that are available today is limitless. Careful consideration needs to be given to what suits your individual circumstances so that your annual bank fee cost is $0.
We often see people who are still paying an ATM fee, a monthly account fee, an excess transactions fee, credit card fees, non-bank ATM fee, yearly account fees, the list goes on and on. Quite often the solution is to use different banks with the right products that suit your preferences. Ok, you then have to login to a couple of different accounts to access funds, but if you set the structure up properly from day one you will save. Those savings can lead to thousands of dollars a year, equivalent to holiday to Bali for a week!
Let’s start with ATM fees and non-bank ATM fees, there are accounts around that allow you to use most of the major Australian bank ATM facilities with no ATM fee at all. Another fee that shouldn’t be paid is the excess ATM transaction fee, (ie you are only allowed 10 EFTPOS transactions a month). The simple answer here is to take larger amounts less frequently.
Then there are credit cards. Credit card interest should never be paid, no matter what account or card you hold it’s very simple to establish an automatic payment facility at the end of the month. If you don’t have enough funds available, then you are spending too much and need to review your spending habits and debt levels. Alternatively, switch to a balance transfer card where the interest is much lower, some are even 0% for 6 months to give you breathing space to repay the debt. Credit card annual fees can be $0 pa, if you have the right card.
Review the total amount of bank fees you pay in a year and see where you can save. Are you paying too much?
General Advice Disclaimer
This article contains general advice only, which has been prepared without taking into account the objectives, financial situation or needs of any person. You should, therefore, consider the appropriateness of the information in light of your own objectives, financial situation or needs and read all relevant Product Disclosure Statements before acting on the information. Whilst every care has been taken to ensure the accuracy of the material, Paradigm Strategic Planning or Sentry Advice Pty Ltd will not bear responsibility or liability for any action taken by any person, persons or organisation on the purported basis of information contained herein. Without limiting the generality of the foregoing, no person, persons or organisation should invest monies or take action on reliance of the material contained herein but instead should satisfy themselves independently of the appropriateness of such action.
Paradigm Strategic Planning Pty Ltd is an Authorised Representative of Sentry Advice Pty Ltd AFSL 227748