Bank Account Fees Explained-Know What is Happening in Your Account
Having a bank account is not supposed to cost much.in fact, if manage your account and use carefully use your bank cards, you won’t pay much at all. Trying to withdraw money you don’t have and going above your overdraft limits can increase your account fees.
Refused/Bouncing Direct Debits Charges
If you have a debit order due to be paid and you have no enough money in your account to cover it, the bank can let it bounce and charge you. These can cost a lot.
A lot of current accounts charge for bounced debit orders. But, with Jam jar accounts don’t charge this way, they instead charge a monthly fee. Try and avoid bouncing debit orders.
Monthly Maximum Account Charges
Current accounts have a Monthly Maximum Charges in place. This is basically the maximum amount you would pay in your monthly fees. These include charges and interest on unarranged overdrafts.
It is wise to ensure you check what the Monthly Maximum Charges are with your current account so you understand the costs.
Overdraft fees Charges
These are transaction fees if your overdraft is unauthorized. An overdraft is just a way of borrowing money from your bank, linked to your current account. The bank allows you to use more money than you have in your bank account and charge you for it. Overdraft fees can increase quickly. If you go beyond your agreed overdraft limit you might be charged for every cash payment you make, even if the bank does not allow the payment to go through.
ATM (cash machine) fees
Some bank accounts can have free withdrawals. Some ATMs ash machines mainly the ones inside small shops and garage can charge you more each time you withdraw money from them. Withdrawing money by credit card comes with a charge, and interest is paid from the date you withdraw the money.Interest-free benefits only apply to purchases.
Foreign transaction fees
Some banks charge fees are from foreign transactions, these are usually for ATM withdrawals and purchases.
Once off items Fees
Individual banks have a list of fees it charges for one off items. The once off items may include ordering a statement, copies of paid cheques, stopping of cheques, bank reference letters and others. Banks will usually tell you if there is a charge, and how much it will be when you need any of the mentioned items.
Manage your account and understand what you are paying for.
Related Articles:How To Choose The Right Bank Account That Will Suit Your Needs
Capitec Rated the Best South African Bank in 2017
Basic things banks look out for when assessing a home loan application