atms

10 Pointless Fees That Are Sabotaging Your Budget

Carrie Kirby — Tue, 12 Jun 2018 09:00:30 +0000

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A friend recently replaced her internet provider's outdated modem with one she bought herself.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 resources if they're too high. (See also: Watch Out for These 5 Sneaky 401K Fees)

5. Foreign transaction fees

If you go overseas, you may find yourself hit with foreign transaction fees both while using your credit card and while withdrawing cash. The only way to avoid this is to do your homework before you go. There are a lot of credit cards that advertise no foreign transaction fees now, so if your card doesn't offer that perk, simply apply for one that does before your trip. Getting approved should only take a few days, and you can even pay extra for express shipping if you're leaving soon.

If your bank account charges foreign transaction fees, that can be harder to change, because opening a new account takes paperwork and time. If you have more than one account, check with all of them. Last time I went overseas, I learned that my credit union account doesn't charge the fee, while my regular checking account did. So I simply used the credit union account to withdraw cash on my trip. You can also ask your bank if there is a different account type you can switch to that doesn't charge the fee. (See also: 11 Ways to Avoid Bank Fees While Traveling)

6. Library fines

When my kids were little and liked to check out 10 picture books at a time from our local library, the books would end up mixed in with their personal libraries and I would forget we ever checked them out. We ended up running up so much money in fines that my library card was frozen.

A better way to operate is to set a calendar reminder on your phone for the day before books are due. Keep the receipt handy, or consult your online library account, so that you have a list of all the books you checked out. If none of that works, you may have to do what I did: Institute a "read them at the library only" policy for library books.

If you do let those fees add up, find out if your library has an amnesty or fee forgiveness day scheduled. Our local library sometimes forgives fines in exchange for donations to the food pantry. You can also let the library know if you have a financial hardship; as long as they get the books back, they may be willing to waive the fines. Finally, find out if your library offers fine-free cards for children.

7. Credit card fees

If you fail to make the minimum payment on your credit card, you will be charged not only interest, but also a late fee. While traveling last month, I missedpayments on two credit card accounts, each which only had a tiny amount of charges on them. For both, the fee was larger than the balance I'd failed to pay.

To avoid this, always make at least the minimum payment each month. Not only will this avoid this month's fee, but it will demonstrate a good payment record which will help if you ever do slip up. Because I'd had a perfect on-time payment record before this, both credit cards forgave my late payments and reversed the fees. (See also: 5 Simple Ways to Never Make a Late Credit Card Payment)

8. Credit report fees

It's a good idea to check your credit report regularly for accounts you don't recognize, accounts sent to collections without your knowledge, or other problems that could prevent you from getting a loan in the future. But you generally don't need to pay for this. Under the Fair and Accurate Credit Transaction Act (FACTA) all Americans are entitled to one free credit report a year from each bureau. (See also: How to Read a Credit Report)

9. Money transfer fees

Sending money to family or even paying bills if you don't have a checking account can run up large fees, but it doesn't have to be that way. There are now tons of ways to send money with no fee or only a small fee, using PayPal, Venmo, Apple Pay, or Square Cash. For PayPal, if you're not making a business transaction, make sure to choose the friends and family option so you're not charged a fee. (See also: 7 Modern Ways to Send Money to Your Kid)

10. Airline fees

We are in the era of a thousand airline fees, and it is annoying. Many of the so-called fees that airlines tack onto your bill are just price increases in disguise, while others are mandated by the government. But there are some that are often avoidable, such as phone booking fees, baggage fees, and ticket change fees.

To avoid a phone fee, book online whenever possible. If you are booking an itinerary that can't be booked online, such as using miles on partners for some airlines, remind the phone agent that your transaction can't be done online and they probably won't charge you the fee.

To avoid baggage fees, look into getting the airline's credit card; many offer a free checked bag and other privileges to cardholders. Another strategy is to bring a roll-aboard bag that fits within the airline's carry-on allowance. In my experience, passengers with these bags are often offered free checked baggage at the gate anyway. Finally, you can stick to airlines that don't charge a fee for the first bag or two, such as Southwest. (See also: 6 Ways to Save On Baggage Fees)

Avoiding ticket change fees can be both the easiest and hardest. When your plans don't change, or if you book with Southwest, it's easy to avoid. If you made a mistake on your booking or if plans change, these can be impossible to avoid. The best you can do is to check and double check your reservation within the first 24 hours, before the airlines are allowed to charge a fee.

Some airlines offer the chance to purchase a ticket with free changes for a higher cost. Naturally, on the flights when I paid extra for that privilege, my plans did not change. If your plans change unavoidably, you can try calling the airline or booking company to plead your case. If the change is due to a death, you'll be expected to produce the death certificate.

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This article is from Carrie Kirby of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

11 ATM Mistakes to Avoid Overseas

Nick Wharton — Fri, 16 Mar 2018 09:30:22 +0000

Thanks to ATMs being so widespread globally, you can travel to a foreign country with little more than a bank card and gain instant access to your cash. However, without an understanding of the differences between using an ATM at home and abroad, you could end up in serious trouble. Here are 11 common ATM mistakes to avoid while overseas.

1. Using your credit card for ATM withdrawals

Credit cards typically charge larger fees when you take out a cash advance at an overseas ATM. You’ll be charged a cash advance fee, probably an ATM fee, and possibly a foreign transaction fee (unless you have a credit card with no foreign transaction fees). Plus you’ll instantly be charged interest on the cash advance at a higher rate than your purchase APR.

Do yourself a favor: Only take out money using your debit card and save your travel rewards card for direct purchases.

2. Not getting a checking account with no ATM fees

Even if you're using the ATM of the same institution that you bank with at home, you're still likely to get hit with ATM fees just for taking money out. Avoid this by signing up for an account that promises no international ATM fees. Several U.S. banks and financial institutions offer zero ATM fees, and even if the ATM applies one, you'll likely get reimbursed at the end of the month. (See also: 11 Ways to Avoid Bank Fees While Traveling)

3. Thinking ATMs can do the same transactions as in the U.S.

If you're hoping to pay bills, transfer money between accounts, or even see an accurate account balance when you’re abroad, think again. Many foreign ATMs are relatively one dimensional, particularly when it comes to using them with nonnative cards. Be prepared to only withdraw cash from ATMs and setup online banking or use your bank's app for anything else.

4. Not telling your bank about your trip

As part of their fight against fraudulent activity, banks will often take the precaution of freezing your account whenever anything unexpected happens. This includes you attempting to withdraw cash in another country if you haven't made them aware of your travel plans. All it takes is a quick visit, phone call, or online update to let your bank know where you're going and for how long, and you should have no issues.

5. Not counting your money upon withdrawal

Though no one wants to be standing around in an unfamiliar country flicking through wads of cash, you also don't want to be shortchanged by the ATM. Before you head off, always discreetly check that the amount you've received matches the amount you've requested so you can sort out any issues while you're still there. It's also better to withdraw cash during the day, and from an actual bank premises while it's open so you can simply pop in if a problem arises.

6. Not setting up bank app notifications

Most banks now have apps with systems to alert you when various activities are detected on your account. The most important of these to set up is receiving a notification whenever a withdrawal is made, even if it's one that the bank doesn't suspect as fraudulent. This way you can easily keep track of everything happening on your account while overseas and quickly recognize if something is amiss. (See also: 6 Big Ways ATMs Are Changing)

7. Not keeping a copy of your ATM card somewhere

If your card gets stolen, swallowed by an ATM, or simply lost, then it's important to have backup copies of it. These will allow you to cancel the card quickly as well as order a replacement for when you get home. Rather than having paper copies, it's a better idea to create a digital backup (a photo) and store it somewhere safe. (See also: The ATM Just Ate Your Deposit. Now What?)

8. Not changing the daily withdrawal limit

Many travelers choose to lower their daily withdrawal limit when they head overseas. This means that in the event of someone getting ahold of your card and attempting to withdraw cash fraudulently, they will only gain access to a certain amount.

It's also wise to use two accounts to manage your cash. Set up the one without a connected bank card to keep the majority of your travel cash in, and use online banking to transfer money to the other account with the bank card. Your money will then be doubly protected if your card goes missing.

9. Not checking ATMs for skimmers

This is something you should be doing regardless of where in the world you're using an ATM, even if it's at home. But having your card cloned in a foreign country can be even more traumatic, and sorting everything out in the aftermath an inconvenient process.

Always take a good look at the card slot before sticking your card in to make sure there's nothing suspicious about it, and if you're in any way concerned, move onto another one. (See also: 10 Tips to Save You from an ATM Skimmer)

10. Not having a small cash backup

Despite the fact that ATMs are now easy to find in virtually any corner of the world, it always pays to have a plan B in the event of something going wrong. The best way to do this is to always have a small cash backup that you keep somewhere safe separate from the rest of your cash, just for emergencies.

11. Not having your bank's phone number readily available

Unfortunately, sometimes the worst does happen and you can be stuck with a number of problems at the ATM. When it comes to banking, time can literally mean money in an emergency situation. That's why it's vital that you have your bank's phone number on hand so you can contact them quickly in a crisis. And remember to input the international dialing code if necessary.

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This article is from Nick Wharton of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

The ATM Just Ate Your Deposit. Now What?

Dan Rafter — Mon, 05 Feb 2018 09:30:05 +0000

The United States is filled with ATMs. According to Statistic Brain, there were 425,000 of these machines in the country as of March 29, 2017. Statistic Brain also reported that the average ATM in the United States saw 800 transactions every month.

With all of these machines and all of these transactions, it wouldn't be surprising if every once in a while an ATM ate a consumer's cash or check deposit without crediting their account or providing them a receipt. The question is, what should you do if this happens to you?

Contact your bank ASAP

Don't just ignore what happened. Contact your bank, and do it immediately.

If you are standing outside your own bank when this happens, using one of your financial institution's ATMs, simply go inside and explain what happened. Your bank can correct the situation on the spot, crediting the deposit to your account and issuing you a paper receipt verifying the funds.

That's the simplest solution. But what if you are using a stand-alone ATM that's not near your bank branch? What if you are using an ATM not even run by your bank and it swallows your deposit without recording it?

Again, this is frustrating, but don't panic. It's imperative to call your bank immediately. Use the number on the back of your debit card to contact your bank and explain the situation to the customer service representative. The bank will usually credit you for the deposit and perform an investigation. If it determines that you actually did deposit the amount you claimed, it will finally deposit that amount in your account, removing the credit. The time it takes for this to happen will vary depending on your bank.

Does this happen often? That's difficult to say. There are no statistics available on how often ATMs eat deposits without crediting consumers' accounts. But what isn't hard to determine is that consumers use ATMs often. A 2017 banking study said that 61 percent of consumers visited an ATM at least once a month. That leaves plenty of room for potential ATM grabs. (See also: 6 Big Ways ATMs Are Changing)

The alternatives

If you want to avoid the chance that your ATM will eat your deposit, you do have other options.

If you are depositing cash, your only real alternative is to visit a bank branch in person and make the deposit with a teller. This might be an inconvenience, depending on your bank's branch locations and their hours, but it's safer to hand your cash deposit to a teller than it is to stuff it in an envelope and deposit it in an ATM that could make a mistake.

If you are depositing a check, you have more options. Yes, you can deposit your check in person with a teller if you want to avoid the ATM. But you can also sign up with a bank that offers mobile deposit. Using your bank's smartphone app, you can take a photo of your check and deposit that check right into your account from anywhere.

Just be aware that mobile banking isn't foolproof, either. Hold onto your checks after you deposit them until you see the money appear in your account. Your bank might send you a message saying that it couldn't read the photo, or that there was an error. You'll have to snap another photo of your check to try again.

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This article is from Dan Rafter of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

9 Common Mistakes You're Making With Your Checking Account

Mikey Rox — Tue, 17 Oct 2017 09:00:06 +0000

Most of us think about our checking account in only one way: Is there enough money in it? While that's certainly the most important piece of the puzzle, there are plenty of other things to consider to ensure that you're getting all the bangs for your bucks. Beware of these common, costly mistakes you might be making with your checking account.

1. Maintaining a lower balance than you need to cover your expenses

Your top concern regarding your checking account should always be that you have enough money in there to cover your expenses — even more so if you subscribe to direct deposit and/or autopay services. By engaging in the latter, you're essentially putting machines in charge of your finances, which, while convenient, are not always accurate. If you don't have enough money to cover your bills, you know what happens — you dip into the negative and you're slapped with insufficient funds or overdraft charges, further dragging you into the red. This oversight also can affect your credit score if you miss the payment for 30 days or more. (See also: The Pros and Cons of Autopay)

The best you can do for yourself is to commit to keeping your bills covered by your checking account and staying on top of your auto-deposit payments to maintain a positive and accurate balance.

2. Keeping more money than you need in your checking account

Keeping enough money in your checking account to cover your expenses should be your main focus, but you also may be doing yourself a disservice by keeping too much money in that account. It's a balancing act, for sure — but if your surplus can benefit you someplace other than your checking account, you need to move it.

Says Michael Banks, founder of personal finance blog The Fortunate Investor, "Money that sits in a checking account accumulates very little in interest. [Some banks], however, offer investor checking accounts that allow you to invest your checking account funds to maximize growth. You don't need to invest all of your money, and it's easy to keep two accounts and transfer as much into your investing account as you feel comfortable with; but the more you invest the more you stand to gain in the long run."

If the idea of an "investment" account gives you anxiety, then consider opening a Roth IRA or at least finding a high-yield savings account instead.

3. Limiting your access to in-network ATMs

When I first moved to Manhattan, there were only a handful of my bank's in-network ATMs on the entire island, none of which were near my apartment. I was never close enough to one when I needed cash, so the fees added up quickly (some out-of-network ATMs charged up to $5 per transaction). This went on for a few months before I wised up, did my research on the most abundant ATM locations in New York City, and switched banks. If you're banking someplace and the ATM locations are prohibitive to you, consider banking elsewhere; you could save a bundle in time and fees. (See also: 8 Ways to Make Sure You Never Pay an ATM Fee)

4. Paying fees just to have a checking account at a particular institution

Some banks charge a monthly checking account fee if you don't keep a minimum balance in it — say $1,500, for example. If you don't like keeping excess funds in your checking account, it does not make sense to pay a premium to bank with an institution that charges you for moving money around. Another option you have is opening a free checking account at a credit union.

According to a 2016 Bankrate survey, 76 percent of credit unions offer free checking accounts. This is good news in a time when free checking at banks continues to decline almost every year. The survey also noted that an additional 22 percent of credit unions are willing to waive their monthly fee for meeting certain requirements such as signing up for direct deposit or paperless statements. (See also: Are You Paying These 6 Unfair Banking Fees?)

5. Spending without checking your balance

Do you know exactly how much money is in your checking account right now? What about a close estimate? If the answer is no, you're not staying on top of your money well enough — and you definitely shouldn't be pulling out your debit card when your balance is in flux. Before you make a purchase that you even think could compromise your balance, log into your account (easy to do with your mobile app; I log into mine with a fingerprint), and manage your money wisely.

6. Ignoring your transaction history

You need to stay on top of what payments are being deducted from your checking account, even if they haven't actually been deducted yet. Continuing to spend when payments are pending could spell disaster.

"Check your account every couple of days to ensure transactions have been posted," advises Natasha Rachel Smith, personal finance expert at TopCashback. "Be aware of holds on your account as a result of a retailer or merchant requesting authorization of a purchase. For example, gas stations and hotels could put a hold on your account until the actual transaction clears, so be mindful of these transactions when viewing your available funds. I also recommend checking on your transactions for fraudulent charges and reporting them as soon as possible."

7. Not subscribing to overdraft protection

Banks typically charge a $35 overdraft fee, and it's important to keep that in mind when you know your checking account is getting low. You also should fortify your account with overdraft protection if it makes sense for you. (See also: 9 Ways to Avoid Overdraft Charges)

"Although opting out of overdraft protection can be ideal to not get hit with overdraft fees on debit card purchases, your bank can still charge you non-sufficient funds fee for checks and bill payments that can be comparable to an overdraft fee," Smith explains. "It is ideal to opt out of overdraft protection when you have a savings account with the same bank. Typically, if you have both, the overdraft fee is less. If you choose to opt in to overdraft protection, always be cautious so you avoid the charge."

8. Assuming that every debit charge is legit

Once a week I go through my checking accounts to make sure all the debit charges are legit. There have been a few occasions where I've noticed an error — a fraudulent charge, a subscription I canceled, an incorrect amount charged for an expense that I authorized, or a price hike in my existing memberships. If I didn't do my due diligence and address these errors, nobody else would have. Check in on your money to make sure the numbers are correct.

9. Linking to online retailers you know nothing about

It's becoming more and more common — especially around the holidays — for shoppers' financial information to be compromised by a security breach. I'm not going to tell you to stop shopping online altogether, because that's just impractical, but I will urge you to be more responsible in where you spend your money and save your banking information.

First, make sure the website is secure. The "https://" distinction designates a secure site, opposed to the more common "http://" protocol identifier for sites that don't require any user information.

Second, use common sense. While it's not impossible for well-known retailers with an arsenal of security resources to get hacked, it's much more likely to happen to the small-potatoes shops that can't afford top notch security. Of course, these smaller retailers don't have as much to offer hackers in the way of identity theft. But in any case, use your best judgment when providing your financial info online to prevent being a victim. (See also: 5 Dangers of Mobile Banking — And How to Avoid Them)

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This article is from Mikey Rox of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

5 Sales Strategies Your Bank Uses to Make Money

Damian Davila — Tue, 21 Feb 2017 10:31:29 +0000

Many people fail to realize that their banking institution is, in fact, a business. And as such, they're using a wide range of marketing and sales strategies on you, whether you realize it or not. It's up to you to be the smart customer. Let's review five of the sales strategies you should keep an eye on.

1. Cash or Gift Card Offer for Opening an Account

When a new bank branch opens in your neighborhood, you may receive a mailer informing you that you could receive a hefty cash bonus or gift card for opening a new account. Free money may sound great, until you realize that there is a catch. Very often you have to meet a minimum balance deposit for a required period of time, effectively locking you into doing business with the bank. Think about it: How often do you switch banks? Consider whether you really want to deal with having a new bank account before you jump at the offer.

2. Free Checking Account

There's no such thing as a free lunch, and some free checking accounts are no exception. Common requirements that banks impose on their customers include:

Maintaining a minimum balance. Some banks require a minimum daily balance per statement cycle to have a $0 monthly maintenance fee;
Meeting a minimum number of transactions. Some banks may require you to use your debit card a minimum of 10 to 12 times per month; or
Making at least one monthly deposit. Often, that monthly deposit must be a direct deposit from your employer.

Banks may set only one of these requirements or a combination of them. If you were to fall short on any of these requirements — such as making only 11 out of 12 required monthly transactions, or having an account balance below the required minimum for even just one day — you would get charged a fee for using your "free" checking account. Make sure you can easily meet their requirements before signing up.

3. Higher Interest Rate on Savings

A bank may offer what sounds like a very high savings rate, but the bank will use language such as "up to 2% APY." To get the promised 2%, you'd have to keep a very high balance. Depending on the amount of money you actually have to put into the savings account, you might end up with a lower rate than you already have — 0.20% or 0.25% APY, for example. (See also: Best Online Savings Accounts)

4. ATM Fees Refund

Let's face it: ATM fees are annoying, and some banks will offer to reimburse all or some of the ATM fees to make up for the inconvenience. However, the limit of the ATM fee reimbursement varies widely per banks. Some banks offer $10, $15, or $20 per statement cycle or month. With the average ATM fee at $2.90 in 2016, you could easily eat up any of those refunds in just a few trips to the ATM. Consider your ATM needs and options in your area before you sign up with a bank with limited network ATMs. (See also: 8 Ways to Avoid ATM Fees)

5. Mobile Check Deposit

You've seen the TV ads: a busy Millennial, mom, or retiree totally ecstatic about how they can save time by depositing checks on the go with their smartphone. Snap, click, deposit! It's great for the average person with a few checks for small amounts, but if you're a freelancer or small business owner who thinks this will save you trips to the bank, think again. There are all sorts of limits on the amount per check (and even amount per 30 days) that you can deposit this way. Some banks offer special equipment that allows higher limits, but still, it may not be as convenient as you think. (See also: Modern Ways to Send Money Instead of Using a Check)

The Bottom Line: Know Your Bank Fees!

When you're unhappy with your current financial institution, the promise of better banking through a higher savings interest rate, lack of fees, or refund of all ATM fees may sound enticing. While some of these selling points can indeed improve your financial situation, make sure to thoroughly review the requirements, if any, to gain access to the promised features. (See also: Switch to a Better Bank in 5 Easy Steps)

When facing a list of potential requirements, do a cost-benefit analysis. For example, can I leave a $5,000 deposit to get a 1.5% APY without putting any pressure on my monthly budget? If so, then take advantage of that higher savings rate. Be a smart bank user, shop around, and evaluate all of your options.

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This article is from Damian Davila of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

How to Get Cash While Traveling Abroad

Jason Steele — Tue, 14 Feb 2017 10:30:39 +0000

When you're on the road, whether it's for a domestic or international trip, a good travel credit card can usually meet most of your payment needs. But inevitably, you will need cash at some point, too — for instance, when you want to tip skycaps, bellhops, and other service providers who don't take credit cards. In addition, many retailers in the developing world — and even advanced nations like Japan — still don't take credit cards. Finally, there are merchants at flea markets, farmer's markets, and traditional shopping areas where you can drive a harder bargain if you pay in cash.

Don't Use Your Credit Card at an ATM

Credit cards are the worst way to access cash at home or abroad. To do so, you have to take out a cash advance. Most credit cards charge an extremely high interest rate — often over 25% APR — for cash advances, even if they offer a competitive rate for purchases. Furthermore, cash advances don't come with a grace period, so those interest charges begin accruing as soon as you make your transaction. Most credit cards also impose a cash advance fee of 5% or $10, whichever is greater. On top of that, you may be charged a foreign transaction fee as well as an ATM fee.

If you're thinking it still might be worth taking out a cash advance to earn rewards through your credit card, you should know that cash advances don't earn rewards. Even if they did, the fees would far outweigh the value of any rewards anyway.

Debit Cards Are Better for Accessing Cash

The key to accessing cash at home or while traveling is to have a debit card linked to your bank account. These cards will never impose interest charges or cash advance fees, which can represent most of the costs associated with using a credit card at an ATM. In addition, most credit cards issued by banks in the United States are part of global networks such as Pulse, Plus, and Interlink, which virtually assure compatibility with ATMs all over the world.

Check with your bank about ATMs available in the area you'll be visiting, fees to use out of network ATMs, as well as currency exchange fees. You may want to consider opening an account with a bank that has better rates like fee-free ATM use. Some banks charge you a flat fee each time you use your debit card at an ATM that's outside of their network, and some ATM operators also charge a fee for using an out-of-network card (yes, that's two separate fees). In addition, most banks charge a 3% foreign transaction fee, and even if they don't, the card networks — Visa and MasterCard — charge 1% for purchases for withdrawals in a foreign currency.

Fortunately, there are some banks that don't charge these fees, and others, such as Schwab Bank, will even reimburse you for any ATM-associated fees. Read the fine print on your agreement before you leave. (See also: Best Online Banks for Checking Accounts)

Best Practices for Accessing Cash From ATMs

First, you should contact your bank before you travel to inform it what countries you will be visiting. This will prevent the bank from suspecting fraud and freezing your account. This is also a good time to ask what fees you can expect from your card — including out-of-network fees and foreign transaction fees.

Once you're traveling, look to withdraw money from an ATM that's part of your bank's network, so that you will not be charged any out-of-network fees. And if you are charged fees, you can minimize these flat charges by making fewer, larger withdrawals rather than many smaller ones. Make sure to take extra precaution though, if planning to carry around large sums of cash. (See also: How to Avoid Theft While Traveling)

Finally, try to use an ATM from a major bank rather than a standalone machine, especially at an airport. The machines at the large banks are typically the ones used by locals and will likely have lower fees, while standalone machines in tourist areas will often have the highest fees. In addition, there can be more security when you are in the lobby of a bank as opposed to accessing cash from a small machine in a crowded area.

By using these tips to access cash, you should have the money you need wherever your travels take you, without paying unnecessary fees.

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This article is from Jason Steele of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

7 Money Leaks You Need to Plug

Mikey Rox — Thu, 15 Sep 2016 10:30:05 +0000

Want to tighten your budget, but can't figure out where you can save money? Look for leaks in your budget — places where money is slowly but surely leaking out. Here are seven places to start:

1. Insurance on Old Vehicles

Have cars or trucks sitting in your garage, driveway, or backyard that rarely or never get road time? Or maybe you're paying insurance on other types of vehicles — like boats or motorcycles — that have become permanent fixtures on your landscape. If this situation sounds familiar and you're still carrying insurance on these vehicles, it's time to make a decision. Either cut the insurance and put a tarp over the machine(s) for preservation, or put it up for sale so you can make a few bucks.

2. Bank Fees and Out-of-Network ATMs

Many checking and savings accounts have maintenance fees related to a minimum balance, and if you don't keep that minimum in the account, you'll be charged the fee — and you may not even realize it. For instance, last year I upgraded my savings account to a higher-yield savings account that pays more interest, but I recently took out a large sum of that savings for a down payment on a home. Unbeknown to me, the new savings account charges a $12 monthly fee for not keeping a minimum balance of $10,000, which I was quick to flag, and I reverted back to my previous account until I've replenished my savings to accommodate the higher-year account's requirements. Now, $12 a month may not seem like a big deal, but if you let it go too long, it really adds up. It's worth calling your bank or sitting down with an in-bank representative to discuss your accounts' requirements and to ask about what types of accounts best suit your needs.

Another way you can plug money leaks from your account is to avoid ATMs that charge a fee for use. I've seen service fees upward of $10 at some ATMs, and that's not counting the fee that your bank may also charge — my institution's is $2.50 per transaction — every time you use an out-of-network ATM. If you need quick cash (like for a night out, for example), try to remember to go to your home back earlier in the day or stop by a convenience store, like Rite-Aid or 7-11, and use the cash back option if you're on the go.

3. Unused Memberships and Subscriptions

Over the past several years, the availability of membership and subscription services has skyrocketed thanks to our increasing attachment to mobile devices. Services like Spotify, Netflix, Hulu, and more extract their monthly fees from our bank accounts, and that can be dangerous if the price is not justified by the amount we use a particular service. If you lost your interest in an existing subscription, cancel it. This also applies to traditional month-to-month memberships too, like your gym. If you're not using them on a consistent basis, put them on hold until you get back on track or end them so you're not paying for rather pricey services you're not receiving.

4. Credit Card Interest and Late Payments

Avoiding credit card interest and late payments should be a top priority when you're trying to stop hemorrhaging cash. Maybe you can make up the difference by plugging up the other money leaks listed in this article. But, if that's not feasible or if you fall short, consider picking up a side gig, like pet sitting using services like Rover.com and Dog Vacay or driving with Uber or Lyft. I personally do both, and the money I've made from these "extracurriculars" has helped me pay off bills and put a substantial amount of money in my savings account.

5. Mobile Data Overages and Outdated Plans

Many of my friends complain about never having enough data and subsequently having to pay for overages. It's annoying for them because either they have to suck up the cost of going over, or cut back on their data usage, which becomes quite prohibitive after a while. In addition, if you've had the same mobile plan for a while, now is a good time to call your provider to see what savings are available. Last year, I called my mobile provider to inquire about my plan, which had remained the same for about 10 years, and I was happy to come off the call with about $8 in savings per month moving forward.

6. Wasted and Spoiled Groceries

I know far too many people who have pantries packed to the brim with boxed and canned goods that are many years old — and many years past their expiration dates — who continue to purchase even more boxed and canned goods every time they visit the supermarket. It's pure nonsense.

First step, clean out your pantry! Throw out what's expired and the things you know you're not going to eat (or deliver the still-edible goods to a local food pantry), then bring whatever's left to the front of the pantry to be consumed immediately. Next, stop buying items for which you don't have specific plans; this also includes perishable foods. If you not sure when you're going to eat something, why are you buying it? Just in case? Just in case is how you spend way more than you need to at the supermarket. Make a list, check it twice, and stick to it when you next go grocery shopping.

7. Vampire Energy Consumption

Is your air conditioner constantly running — even when you're not home? Do you treat the heat the same way in the winter? TV left on? Dryer turned to high? Faucets dripping? Everything plugged into outlets even when they're not in use?

Every time you quietly answered yes to those questions, it costs you money. To curb your energy consumption, make sure everything is off when you leave the house. Also, unplug non-daily-use electronics and appliances — like that nightstand lamp that you never use — so they're not eating up electricity for no reason. And for goodness sake, fix water and air leaks around the house so you're not almost literally throwing money out the window or down the drain. Be mindful of other ways you may be consuming more energy than you need to, like turning off porch lights, adjusting the temperature in your fridge and freezer, cleaning air filters, and using more efficient cycles on the dishwasher and washing machine if a lower setting will get the job done.

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This article is from Mikey Rox of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

11 Ways to Avoid Bank Fees While Traveling

Nick Wharton — Fri, 08 Jul 2016 09:00:12 +0000

The worst thing to get charged for when you're on vacation is a fee for using your own money. Even worse, there are fees you may not even know existed until you return home and check your statement. They're not all small fees, either. Some of them can be as much as $7 per transaction.

Imagine if over the course if your trip you visited the wrong ATM 10 times and ended up with $70 worth of fees. Fear not, though. I'll go over the most common fees you may run into on the road and show you how to avoid them.

ATM Fees

ATMs are probably going to be your biggest enemy when it comes to overseas bank fees. Most American banks will charge you between $5–$7 per overseas ATM withdrawal. If you travel a lot or take out money frequently while on the road, these can quickly add up.

The best way to save money on bank fees is to do a little bit of preplanning before your trip. You have a couple of options that can help you eliminate ATM fees.

1. Capital One 360

Capital One 360 Checking account holders can use any ATM without incurring usage or foreign transaction fees. This is an online only account (which is why it has no fees), but it even earns interest. Those are two big bonuses for anyone who travels internationally frequently.

2. Charles Schwab

Charles Schwab accounts have no fees and they reimburse all your ATM fees at the end of each month.

You have to open a high-yield checking account in order to qualify, but their debit card can be used in any ATM around the world and you'll never pay a cent in bank fees. There is no minimum deposit required and no monthly service fee either.

3. TD Bank

With the TD account, you are charged a flat $2.50 fee for ATM withdrawals and no foreign transaction fees.

4. Global ATM Alliance

A group of international banks have come together to form the Global ATM Alliance. Basically, any customer who holds an account with a participating bank can take out money from any associated ATMs without a fee. Note that while you won't be charged for using a member bank ATM, you may still get charged foreign transaction fees based on the amount you withdraw. Make sure you check with your bank precisely what their fees are.

The Global ATM Alliance includes the following banks:

Bank of America (United States)
Barclays (England, Wales, Spain, Portugal, Gibraltar, and certain countries in Africa)
BNP Paribas (France, Ukraine)
China Construction Bank (China; Bank of America card holders only)
Deutsche Bank (Germany, Poland, Czech Republic, Spain, Portugal, and Italy)
Banca Nazionale del Lavoro (Italy)
Santander Serfin (Mexico; Bank of America card holders only)
Scotiabank (Canada, Caribbean, Peru, Chile, and Mexico)
Westpac (Australia, New Zealand, Fiji, Vanuatu, Cook Islands, Samoa, Tonga, Papua New Guinea, and Solomon Islands)
ABSA (South Africa)
UkrSibbank (Ukraine)

5. Avoid Credit Card Fees

Many credit cards charge a 3%–5% fee on any purchase made overseas. Think about that for a second. If you go on a two-week family vacation and spend $6,000 out of country, you would end up paying $180 in fees. Luckily, not all credit cards charge this fee, so choosing the right credit card for travel can save you a lot of money on the road. (See also: Best Travel Rewards Credit Cards)

A Few Extra Tips

Take a few other extra steps to make sure you aren't spend a few more extra dollars every time you reach for more cash.

6. Don't Use Random ATMs

While it may be convenient to use the ATM at your hotel or at the corner store, these are typically the ones that will cost you the most in fees.

7. Don't Exchange Money on the Street

Sometimes it's tempting to exchange money with the random guy outside the bank or the people standing around at border crossings. Don't! You may think that they have better rates than the bank, but they're usually scammers. Best case scenario, you get a bad exchange rate, worst case ... you get completely ripped off.

8. Avoid Currency Exchange Booths

While not quite as bad as the hustlers on the street corner, currency exchange booths are the next worst thing and typically have horrible exchange rates, especially ones located in airports.

9. Exchange With Other Travelers

If you end up with a bunch of extra local currency at the end of your trip, consider selling it to another traveler for USD. You'll probably get a better rate and you can avoid all bank and conversion fees this way.

10. Always Pick the Local Currency

Oftentimes when you use your credit card abroad, the machine will give you an option to use your home currency. Don't do this. They will usually charge you a worse conversion rate than your credit card if you just use local currency.

11. Download the XE App

It's always best to know the exchange rate for the country you're traveling to. The XE Currency App is a handy little app will automatically update every day with the exact exchange rate.

How do you access cash when you travel — and avoid bank fees?

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This article is from Nick Wharton of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

5 Ways to Live Bank-Free

Brittany Lyte — Thu, 19 May 2016 09:30:28 +0000

Bounced checks. Confusing marketing. Unexplained fees. These issues and more contributed to a 5% increase in the number of complaints filed against banks last year by checking and savings account holders. Alas, many consider the woes of banking a necessary evil. But others are reacting by taking their money matters into their own hands. Case in point: One in 12 Americans doesn't have a bank account, a trend that experts say is on the rise. How do they do it?

1. Use a Prepaid Debit Card to Make Everyday Purchases

It's detached from any bank account, you can conveniently add or withdraw money from it at the ATM, and you can use it to make purchases, online and in person, wherever traditional debit cards are accepted. Perhaps now you see why prepaid debit cards have become so popular, particularly among Americans without banking accounts. Use your prepaid card like you would any debit card. It's ideal for everyday purchases. And in some cases, employers can deposit your wages to a prepaid card account.

Bonus: Since you can only spend up to the amount of money that's on the card, there's no risk of getting hit with an overdraft fee. You simply can't spend more than you've got loaded onto the card.

2. Pay Your Bills With Non-Bank Money Orders

When the prepaid debit card fails you, money orders offer the next best — and secure — means of bill payment. A money order lets you send money just like a personal check and typically costs less than a dollar per transaction. And, like a check, this prepaid payment method can be tracked and canceled if stolen. You can also receive funds via money order. And since it's prepaid, there's no need to have a checking account to use one.

3. Avoid Money Wiring Services

Simply put, it's expensive. The average fee for an incoming domestic wire at the 10 largest credit unions is almost $5, compared to $15 at banks — while outgoing domestic wire transfers cost more than $17, compared to about $26 at banks.

4. Sign Up for PayPal to Facilitate Peer-to-Peer Payments

Popular among those who have ditched the bank, PayPal allows its users to make quick and easy payments to businesses, colleagues, and friends through its online account system. PayPal also lets registered users opt for "bill me later," an option that delays payment — much like a credit card.

5. Get a Fire-Proof Safe

While you can load all of your funds onto prepaid debit cards, chances are that you're going to have some extra cash you'll want to stow away. Without a bank to keep watch over your hard-earned cash, you'll be smart to invest in a fire-proof safe. Install your safe in a secure location within your home. That means somewhere out of plain sight. Share the lock combination only with those who absolutely need to know it. And don't advertise how much money you keep inside of it.

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Are you bank-free? How do you manage it?

This article is from Brittany Lyte of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

5 Signs It's Time to Find a New Bank

Dan Rafter — Wed, 02 Dec 2015 14:00:28 +0000

No one likes switching to a new bank. After all, it takes effort to close one account and create another. But if your bank is nickel-and-diming you with fees, or if it's closing so many locations that banking is becoming inconvenient, it might be time to make the switch.

"To me, it's all about convenience when it comes to switching banks," said Wade Barnes, senior vice president and director of retail banking with Baltimore-based 1st Mariner Bank. "Maybe just 10 years ago, we'd be talking about how many brick-and-mortar locations a bank has near you. Now, it's more about online banking and having connectivity to your bank 24 hours a day. But you want your banking relationship to be an easy, convenient one. If it's not, then you might consider making a move."

Here are five signs that it's time to find a new bank.

1. Maintenance Fees

Some banks will charge your checking account a monthly fee if you don't make a certain number of payments or withdrawals per month. That fee might only be $10. But if you don't use your checking account often, you could pay $100 or more each year in fees.

The better choice? Find a bank that doesn't charge such a fee. You want your free checking account to be really free. (See also: Banks Still Offering Free Checking)

2. ATM Fees

Using an out-of-network ATM can add up, with the fees charged by these cash machines coming in at $2, $3, or more. You can avoid these fees by only withdrawing cash from ATMs affiliated with your bank. But if you do take out money from an out-of-network ATM, your bank should refund you this fee.

Many banks reimburse customers for all the out-of-network ATM withdrawals they make, basically making all ATMs free. If your bank doesn't offer this service, it's time to make a move.

3. Paper Statement Fees

Most banks will provide your banking statements online. It's a great way to reduce paper. But maybe you're old-fashioned, and you want your bank to send you a paper statement each month. That's fine. Just make sure that your bank doesn't charge you for this service.

Many banks, in an effort to persuade consumers to receive their statements online, are charging customers $1 or $2 every time they send them a paper statement. If you insist on a paper statement, there's no reason to pay this fee. Find a bank that doesn't charge you for this service.

4. Inconvenience

Maybe your bank was just bought up by another financial institution. That's usually fine, unless the new bank institutes changes that make being a customer there less convenient for you.

Maybe your newly acquired bank is closing all the brick-and-mortar branches near you. That can be a hassle, even if you do most of your banking online. Maybe the bank is reconfiguring its ATMs, making it so you can only withdraw cash from them but can't make deposits into them. Or maybe your bank decides to reduce some of the services it offers online.

Banking shouldn't be a hassle. If your bank is becoming one, you need to start looking for a replacement.

5. Bad Customer Service

What if you have questions about your mortgage loan, but your bank's home loan experts are never available to speak with you by phone? What if you call your bank and the phone just rings forever, with no one picking up? Maybe your bank doesn't hire enough tellers, and every time you need to see one, you have to wait in line 20 minutes?

These are all examples of the bad customer service some banks provide. If you're not satisfied with the service your bank is providing you, you're ready to move on to a new financial institution.

Have you switched banks recently? Tell us why in the comments section below.

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This article is from Dan Rafter of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

8 Things to Consider Before Switching to an Online-Only Bank

Paul Michael — Wed, 13 Apr 2011 10:24:08 +0000

The rise of online-only banking has been meteoric over the past several years. These virtual financial institutions offer tantalizing customer-focused products, as well as the latest technology to make online-only banking a breeze. Are you considering making the switch to online-only? Before you dive in, make sure you're considering the following things about this increasingly popular way to manage your money. (See also: 5 Best Online Savings Accounts)

1. How important is in-person service to you?

Some people just cannot, and will not, take human contact out of the equation. It's not a case of technofear, but the comfort of knowing that if anything does go wrong, or you need help, you can drive to a physical location and sit down with a bank representative.

Talking over the phone (which can lead to frustration over endless phone menus and outsourced help) has given many people heartburn over making a call. And live chat can be even worse. What's more, if the bank website goes down, the app fails, or you don't have internet access, you can feel helpless without a direct way to access your money.

So, before making the switch to online-only bank, ask yourself: Am I going to need in-person help in the future? If the answer is yes, online-only banking may not be for you. (See also: 7 Ways to Pick the Bank That's Right for You)

2. Does the bank have an established record of good service?

This is your money. Are you ready to entrust it to a new online-only bank with a lot of slick graphics, ad campaigns, and amazing promises, but no proven track record of success? With new online-only banks popping up every day, you need to do your research.

It's on you to do the homework and get good feedback before turning all your money over to a new online-only bank. And remember, even banks with a long history of business can have their troubles, so check into names you know well. What's in the news? It never hurts to triple-check.

3. Is the online-only bank FDIC insured?

The Federal Deposit Insurance Corporation was created in 1933 to promote public confidence and stability in America's banking system. Of course, a lot has changed since then, but the FDIC insurance seal is still a vital part of your safety and security.

Should anything happen to the bank (remember 2008?) your money is protected, usually up to the amount of $250,000; any more than that and you'd have to purchase additional insurance. However, most of us fall into that $250,000 category. If the online-only bank you're considering does not carry FDIC insurance, you should probably look elsewhere. To check, enter the name of the bank on the FDIC's website and you'll get your answer instantly.

4. How easy is it to put money in and get money out?

The last few years have seen some great features and benefits in both the traditional banking industry and their online-only competitors. For example, most banks now offer some kind of mobile check deposit using your smartphone or computer. In the case of online-only banks, this will be the primary way you get money into your online-only account after the usual direct deposits and electronic fund transfers.

There are also payment apps like PayPal, Venmo, Google Wallet, and Cash App. How well does your online-only bank integrate these systems? And many of these online-only banks have deposit limits. If you anticipate wanting to put more than, say, $30,000 a month into your account, this may not be for you.

Then, there's getting money out. Even in this increasingly cashless society, we still need physical money now and then. When that situation arises, how easy is it to get money from an ATM? Is the online-only bank even part of an ATM network? What about getting foreign exchange currency? If you need quick and easy access to cash, make sure your online-only bank can handle the request.

5. Are you comfortable with a limited selection of services?

Online-only banks have less options than their traditional brick-and-mortar counterparts. While both usually offer checking and savings accounts, credit cards, and cash back rewards, the online-only bank you choose may not provide home equity loans, auto loans, and other services you have come to expect from a bank. There are, of course, always other options for those kinds of services, but if you like to keep all of your financial accounts in one place, an online bank may not be what you need.

6. Are the interest rates competitive?

Luckily, most online banks nail this one. Unless you try really hard, you won't find an online bank that has rates lower than a traditional bank. The reason is simple — their overhead is lower. They don't have physical locations to maintain, which includes costs for everything from heating and lighting to security and maintenance.

With significantly lower operating costs, online banks can tempt you away from regular banks with excellent interest rates on a variety of products. For example, right now it's relatively easy to find an online high-yield savings account with an interest rate of over 1.5 percent; that's 15 times higher than the 0.08 percent national average. (See also: Interest Rates Are Rising: Here's Where to Keep Your Cash)

7. What about banking fees and minimum deposits?

As mentioned above, the low overhead costs of online banks mean that they can reduce fees and increase interest rates on checking and savings accounts. But there are other fees to consider.

If the bank isn't part of an ATM network, you'll be paying higher fees to take out your cash. And while some online banks start with a minimum deposit of just $1, others can ask for thousands of dollars to take advantage of the advertised rates. Like anything else, shop around and find the best option for your situation. If you rarely use an ATM, and use a cash-back service at the grocery store, you may be better off paying higher ATM fees to get higher interest on your savings. (See also: Are You Paying These 6 Unfair Banking Fees?)

8. Read the fine print carefully

The financial industry loves fine print, and online banks are no exception. Before you sign your name on the dotted line, go over everything with someone who knows the system well. There may be outrageous fees hidden in the fine print, or you might find that your information may be sold to advertisers and other agencies. This is not just your money, but your Social Security number and your personal information. Be sure you trust the institution 100 percent before you hand over your money and your personal information.

This article is from Paul Michael of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread: