by Suzette Covalt
With all the many different options available today-business clients have choices to help limit or avoid the fees for their bank accounts. Understanding how bank fees work and making some changes to your current accounts will help you to keep more money in your business and avoid unnecessary issues down the road.
Change Your Habits
Currently paying a minimum balance fee: If you currently have bank accounts at several different financial institutions-consolidate into one, this can help you to increase your current balance and help meet the minimum balance requirement to avoid a monthly maintenance fee. Currently paying a monthly paper statement fee: Enroll in paperless statements through online banking and opt to receive your monthly statements electronically and access them through your online banking. This also helps you cut down on paper clutter since your statements will be stored for you up to 7 years within your online banking platform.
Set Alerts
Within your online banking platform set up low balance alerts to notify you via text or email when your balance drops below your targeted threshold. This will help you to avoid unexpected overdraft fees.
Limit Your Cash and Paper Transactions
Many banks charge fees for in-person transactions and paper-based services i.e. writing numerous paper checks. Shift to electronic payments and/or online bill pay to lower or eliminate these fees.
Link Your Savings to Your Checking
Linking your accounts can help save you unexpected costs for overdraft fees since the money will transfer from your savings to your checking automatically (provided there are sufficient funds in your savings account) to cover your shortfall. There may be a charge for this transfer; however, it will be less than the costs of the overdraft fee itself.
Use In-Network ATM’s
Use your bank’s ATM network to avoid out-of-network fees or find a financial institution who will reimburse you for the out-of-network fees.
Find Lower Cost Banking Option
- Switch to an online only bank- these banks offer lower or no fees since they have lower operating costs.
- Consider a Credit Union- They generally charge lower fees and offer better interest rates than traditional banks. They are also known for offering more personalized, member-focused service.
- Simply sit down with your bank and ask them how you can reduce or eliminate your current fees
- Do they offer bundling-this is multiple banking products with one bank for a reduced or waiver of fees. i.e. checking account, savings/money market, business credit card, loan, etc.
- Do they recommend or offer the services of an account executive. This personalized service helps guide business clients through the banking process, keeps communications open, notifies the business client when there are changes, specials promotions, potential issues with their accounts and they even advocate for you.
It’s definitely worth having a conversation with your bank to know and understand your options. Take the time to ask detailed questions, not all fee savings options are advertised. Working with someone who understands your business gives you the support, flexibility and peace of mind you need to build a strong relationship.
