There are different bank account types to consider, a basic or student bank account. How do you choose? One primary concern should be any fees involved and how those fees can add up over time. Before deciding on a bank account, research different banks and credit unions to get the biggest bang for your buck.
Before committing to opening a new bank account, there are four types of fees that you need to inquire about. Find out the details on the following: monthly fees, ATM charges, overdraft fees, and any costs for billing statements. If you’re not careful in doing your homework beforehand, you could wind up with a monthly billing statement of up to $50 plus charges for every withdrawal. No way to get the biggest bang for your buck!
Some student bank accounts waive overdraft charges, but not all of them. Some basic accounts also waive these fees. The cost of a paper bill as opposed to one sent via email can cost over $2.50. Monthly fees could cost over $10 and overdraft fees an average of $25.
Don’t be swayed by student bank accounts, thinking they will save you money. When researching, carefully read the contracts and, more importantly, the fine print. That is where you will find many fees. Take time to check the business out, prior to visiting the bank or credit union, by accessing their Business Review at www.bbb.org. Your best practice, before making any financial decision, is to be informed so you are prepared to ask questions. Otherwise, it can cost you!
photo credit: <a href=”http://www.flickr.com/photos/timtimes/3129533550/”>thetimchannel</a> via <a href=”http://photopin.com”>photo pin</a> <a href=”http://creativecommons.org/licenses/by/2.0/”>cc</a>