The need to increase the bottom line is never ending for banks. The easy way for them to increase bottom line revenue is with fees for their existing customers. These customers are their captive clientele and are the easiest to maximize profits. Recent estimates are that these fees are as much as $50 billion a year an increase of 50% over 10 years ago.



One way to better manage your bank fees and expenses is to ask them if they provide for an account alert. These alerts will notify you if your account drops below a certain level. Most banks will provide this alert to you via email.

Checking Accounts: Many banks use the system of processing your largest checks first. If in the event of an overdraft, the charge is based on the number of checks needing overdraft. With fees as high as $50 a check, this system becomes very profitable for the bank. Some banks have adopted a tired fee schedule which means the more overdrafts in a time period the higher the fees. The natural way of solving this problem is to know your bank balance before writing any check.

Account Fees: Many banks will charge a fee for keeping an account active. This dormancy fee will reduce an account value very fast. If you have any bank accounts not in use, close them and stop the fees. Many banks also may charge a fee for closing an account if it has been opened within a certain time period. Be sure and know what your bank charges for account fees before opening an account.

Gift Card Fees: Many banks charge a fee for selling a retail gift card such as a VISA prepaid card. Also some banks will charge a monthly fee for a gift card they issued and these monthly fees can be several dollars.

Teller Fees: Many banks will charge to speak to and use the services of a teller. Normally these fees are charged when a service is needed over the phone. These fees can range from $5 to $10 every time a service is required. Also many banks will charge a fee for accepting a payment over the telephone, these fees are often as much as $15 per use. Many banks will waive these fees as long as a minimum balance is maintained but the rules vary from bank to bank and it is always best to know what your banks policy is.

The ATM: Many banks allow you to overdraw your account with a withdrawal at an ATM. This allows the bank to impose and overdraft charge on your account. These overdrafts can amount to $30 to $50 for each overdraft. An easy way to avoid this charge is to simply check the balance of your ATM account before withdrawing funds.

ATM fees can also add up. Some banks will charge you fee for their use and then you own bank may also charge a second fee. This practice is diminishing but still can arise; the best way to protect yourself is to ask your bank what their policy is for out of system banks.

PIN Fees: Due to the decline in the use of ATMs and the increase in debit cards, many banks have begun charging a PIN fee every time you use your debit card. These PIN fees can range from $.25 to $1.50 per use.

Information and knowledge is the key to good bank management. Always know what your bank charges and what any requirenments may be to avoid unecessary fees. Banks are required under the "truth in lending" rules to disclose to you all fees and charges. Ask your bank for a copy of these regulations.