Financial institutions and credit unions get lots of instant cash from bank fees, although most people hate to deal with them. One of the largest sources of revenue the banking industry has are the fees it puts out. Financial institution fees are going up. This is mostly as a result of rules about credit cards, etc., that are started now. There are a few things an individual should always watch out for.
Financial institution fees charging more
You will find now limits on how a consumer can be charged and just how much for services with new federal regulations. CNN reports that the majority of the major banks are just raising their fees. There is a new law called the CARD Act. This Act makes it so everyone charging an overdraft fee has a limit to what could be charged. Banks have to find some way to make up for the lost cash. The only way to do this is to make up new fees or raise existing fees. For instance, Financial institution of America is raising the minimum account balance. A monthly fee is charged for customers that go below the balance.
Alterations in over-limit
Before, financial institutions were allowed to give overdraft fees without consumer consent. Protection programs can be really costly. Over-limit protection comes within the form of linking and transferring for some financial institutions. This doesn’t contain all banks though. Checking that goes over can be covered by money transferred from savings. Each and every financial institution has its own amount it charges for this. Wells Fargo, for instance, charges $10 for this. As a cash advance, that’s not too bad. Just having a checking account at Citibank costs a customer $30 a month. A payday loan could be needed by a consumer for not spending any money at all.
It is within the nature
Banks assess fees for certain things, like going into overdraft. Sticking to the straight and narrow will pay off. The best plan is to just avoid getting close to costs. The financial institution will get less of your money that way.
Information from
CNN Money
money.cnn.com/2010/09/24/pf/new_bank_fees/
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