Most expensive financial fees for 2006 released today (part 2)

December 22, 2006

Continued from...

ATM Fees

According to the report released today, these fees are never going away. Banks make too much money off of them, and debt free lifestyle types out there need to avoid them.

In the year 2006, it is being reported that most ATM fees have risen 50%. That’s a big number. When ever you use an ATM that is not your bank’s, you are charged a fee. You are charged a fee from the bank that owns the ATM and your bank. There are rarely situations when your account does not charge for this. The report says that the average fee is $1.25 (from your bank) and an average of 4!.64 from the owner of the ATM. Last year, the average that the owner would charge was 1$1.08. Do you see the difference? It’s big. The report states that in its findings that Fifth Third Bank had the heist fees of $2.50. So, if you do not have an account there – do not use their machines. If your bank’s ATM is out of reach, ask for cash back when you make a debit card purchase, this is typically free to do.

Late fees

The levy you face when your credit card payment does not reach the company on time. You are charged a late fee even if your payment gets there the very next day. Most credit card companies will give you one fee excuse each year. Be aware, some companies have a timed late cutoff too, such as 5PM. You must be especially cautious of this if you pay by phone. According to the report released today, this fee has gone up 150% in the past ten years. Most companies charge you $39 when you are late (even one day). Back in 1996 (according to the report released today) the average fee was $14 - in 2006 it is $35. If you pay by mail – be sure to mail that check out 7-10 business days ahead of the due date to ensure it arrives on time. Online bill pay is sometimes free of charge and you can ensure a timely payment this way – you have more control over when the payment hits. Look into online banking and online bill pay.

Same day payment fees

Say, for instance, that your credit card bill is due today. You have yet to mail it. As we stated above, you can do a phone payment or head to the issuer’s website to pay. Sometimes this is free sometimes it is not. Most credit card companied charge 10 bucks to do this. Be aware of hidden fees here. The new report says that Washington Mutual charges 415 when you transfer money from your banking account to the credit card companies. Try setting up email reminders with your credit card companies that tell you 7-10 days in advance of when your bill is due.

Balance transfer fees

This is the price you pay when your transfer money from one banking account to another. Most banks let you have 2 or 3 of these free of charge each month, some do not. When you are exchanging from one bank to another – there is always a fee. Plan ahead and avoid these last minute transfers that rack up ridiculous fees. Think of it this way, your bank is going to charge you a fee for something you do by yourself over the phone or on your PC – ridiculous. According to the report, 70% of people who make transfers do more than allotted for free.

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