Author: Carrie Kirby / Source: Wise Bread
When I read the word “fee,” what I see is, “something you should have avoided paying.” No one likes to pay fees, fines, service charges, or anything that sounds remotely like a penalty. While some fees are unavoidable — try taking a flight without paying the Passenger Civil Aviation Security Service Fee — there are plenty that you can sidestep by calling to complain, avoiding certain behaviors, or switching providers.
Of course, to get out of a fee, first you have to know it was charged. Here are the especially pointless ones you need to watch out for.
1. Digital equipment rental fees
A friend recently replaced her internet provider’s outdated modem with one she bought herself. When she called to let the company know, they removed a $20 monthly equipment rental fee she hadn’t even known she was paying. She just saved $240 a year!
2. Bank fees
Banks love to tack on fees. One of the most insidious is the overdraft fee, which kicks in when a bank allows you to take more money out of your account than you actually have, then charges you for the “privilege.” The really devilish thing here is that if the bank doesn’t cover the transaction — for instance, if you haven’t opted in to the overdraft program — they will deny payment to the merchant and charge you a non-sufficient funds fee. Either way, you pay.
Other sneaky bank fees are account maintenance fees, which might kick in if your account falls below a certain balance threshold, or check writing fees, which can crop up if you signed up for an account that typically allows only a small number of transactions per month.
A few tips for avoiding bank fees: Use a credit card rather than a debit card to avoid accidental overdrafts.
Keep an eye on your balance and know what checks are coming in. Keep a buffer of several hundred dollars in your account and set a text alert to let you know if your balance dips below it. Link your checking account to a savings account. Know the terms of your bank account.If you do see a fee on your bank account statement, call the bank. They may agree to fully or completely reverse the charge, and at the very least, they can let you know how to avoid the fee in the future — for example, by changing account types. If you find yourself getting hit with a lot of fees, consider changing banks or switching to a credit union. (See also: Are You Paying These 6 Unfair Banking Fees?)
3. ATM fees
The average fee for using a cash machine not run by your bank has hit an all-time high of $4.69, according to Bankrate. This may not seem like a big deal until you consider the percentages here. If you withdraw $40 from an out-of-network ATM and pay $4 for it, that’s like giving away 10 percent of your hard-earned money just for the privilege of using the machine.
To avoid this fee, always keep a little cash in your wallet in case of an emergency. If I find myself in a crunch, I stop at a grocery or drugstore and make a small purchase to get cash back. I’d rather pay $1 for a pack of gum with my cash than $4 for nothing. (See also: 8 Ways to Make Sure You Never Pay an ATM Fee)
4. Investment account fees
When you invest for retirement, you can expect to pay some fees, but plans and accounts with higher-than-average fees can sap your retirement income big time. There are the fees you can easily see: The average investment manager charges around 1 percent of your assets each year. But you may also be paying fees you don’t know about, like load fees on the mutual funds your adviser is buying or excessive trading fees if your manager is moving your money around a lot.
To avoid excessive investment fees, consider a low-cost platform such as Vanguard target date funds or a robo adviser. If you’re stuck with your company’s 401(k) plan, study the fees carefully and complain to human…
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