Curse You Bank Fees! How To Never Pay Sneaky Bank Fees Again
Bank fees are the worst, aren’t they? Let’s talk about how to avoid them for good.
I use First Republic, along with three other banks. First Republic stands out because of its exceptional service. You don’t just stand at a window with a teller; you sit down at a bank officer’s desk to manage your transactions, which makes everything feel more personal. Plus, they offer all-you-can-eat cookies at their branches, which is a nice perk.
Back in 2009, I invested a good amount in a 5-year CD at First Republic because they offered a solid 4.15% return. Looking back, I sometimes wish I’d put that money into the stock market instead. But I’ve been putting 30% of my savings into long-term CDs since 1999, and it’s been a successful strategy, especially during economic downturns.
I also opened a savings account at First Republic because their rates were better than other banks. Over time, though, I drew down the account to just $33.25. Managing multiple accounts across four banks was too complicated, so I stopped using First Republic for anything other than CDs.
I was aware of the small balance in my savings account, but I ignored the paper statements because, honestly, who cares about $33.25? I mostly checked my CDs online. Boutique banks may offer great service, but they’re not always convenient, which is why I hadn’t bothered withdrawing the small amount left.
At the start of the year, I decided to tidy up my finances and close that account. But when I opened my January statement from 2013, I was shocked to see only $8.25 left. It turns out, a new $25 monthly service fee was eating up my balance because it was below $5,000—a change I wasn’t aware of until it was nearly too late.
I visited the nearest First Republic branch to find out more. They had charged another $25 in February, dropping my January balance to a negative $16.75 by March! I wasn’t mad—I actually found it funny. If you start with $1,000 in a savings account, a $25 monthly fee would drain it in just over three years.
I asked the bank rep to reverse the fees, and they did, which I had expected. It seems First Republic is trying to streamline their client base to focus on wealthier customers.
PAY ATTENTION TO YOUR MONEY – And Reduce Bank Fees
I admit, paying this fee was on me—I’d tossed most of my statements. Apparently, there were notices about the fee, but I hadn’t paid close enough attention. Banks will try to impose fees wherever they can because that’s how they make money off smaller accounts. It’s crucial to stay aware and proactive about asking for fee waivers, even if you notice them later.
Banks count on you not noticing these fees. Imagine if a bank warns a million customers about a new fee—many won’t move their money, and the bank ends up making millions in fees. Always read your statements and ask for your money back if you’re charged. Also, keep track of your accounts online; it’s how I noticed the error and got my money back, along with some cookies.
TRUST ONLY YOURSELF TO DO WHAT’S BEST
The more money you have, the more banks will try to charge you. We like to think our money is safe in a bank and that financial institutions will offer the best deals. That’s not always the case, as I learned after running my 401(k) through an analyzer and discovering over $1,700 a year in fees I didn’t know I was paying. There are hidden costs everywhere—it’s time to start checking more thoroughly and considering tools like Personal Capital.
Remember, banks will charge fees wherever possible, especially if you don’t keep an eye on them. Always be vigilant and proactive about managing your finances to avoid these sneaky fees.
