The Top 6 Bank and Credit Card Fees that are on the Rise

In the land of bailouts and economic stagnancy we, as bank customers, are in prime position to be taken advantage of.  Banks have extreme pressure to boost numbers as interest revenue is falling in relation to total revenue.  The only surefire way to do this is by adding new charges, fees, and penalties, or increasing the ones already in place.  They will (re)introduce them sneakily and with fuzzy names.

A myriad of fees including overdraft and late charges have increased 35% of their income since 1995 and they are expected to soar even more in the future.  Bounced check fees have also increased for repeat offenders.  And let's not even begin to discuss credit cards--a whopping $19 billion this year in fees alone, which is 80% higher than in 2003.

Fear not, frugalites.  If you've chosen to live aware of your monetary surroundings and sharpen your eye for deals, this sneaky phenomenon will not pull one over on you.  Check out these bestselling financial fees and what you can do to combat them.

1. Overdraft Charges
Here's an easy bookkeeping fix.  If you know how much is funneling out of your account, it's easy to see when you're in the red.  Keep a running record of your account and check it frequently online.  Your friendly bank representatives are waiting for you to make a mistake, so be proactive.  Not surprisingly, Bank of America (a beacon of economic meltdown) has raised overdraft fees from $20 to $35 per returned item.

2. Checking Fees
But wait, didn't banks ditch those ridiculous charges during the last decade?  Yes, but they are slowly emerging once again.  Citigroup has recently tacked on a 3% debit charge at several locations and for purchases made outside of the U.S.--which actually makes it just as costly as using a credit card.  Bank of America's MyAccess monthly fee has increased from $5.95 to $8.95.  Bankrate.com says fees have continued to rise from their all-time high in 2008, so we can expect to see similar increases in the near future.  Review your bill with a fine-toothed comb and find out ahead of time what you can expect to be billed for.

3. Human Interaction Charges
Some institutions have limited customers to a twice-monthly teller visit and then charge extra for additional contact!  Similar reports of phone call fees are on the rise.  Most of these charges tend to be for excessive use, interpretation vague and probably not up for discussion.  Demand for unlimited access to your funds via live interaction or switch to a smaller bank that still values the customer.

4. Insufficient Deposits
Don't take a check from anyone fishy as it could cost you a big fee if you dip below zero.  Only accept checks from folks you know have the goods to back it up--or just take cash to make life simpler.

5. Late Credit Card Charges
If you resort to using a credit card, make it a personal policy to send in your monthly bill (or, better yet, the entire balance) ten days ahead of the due date.  If legislation decides to put caps on those fees then we may see a halt in growth, but until that comes you need to avoid the increasing charges at all costs.  Pun intended.

6. Annual Credit Card Usage Fees
How nice of American Express to allow us the esteemed privilege to be a member of their fancy, actor-endorsed card?  So helpful are they to group us with the Hollywood elite for a minor $60 yearly charge.  Don't enlist in these user fee cards and cancel them if they won't budge.  Other companies are bringing back the annual fee as well, so stay tuned to your statement and ask about charges that don't seem typical.
 
As with any financial institution, nothing is set in stone.  If you have a legitimate complaint about a charge, politely take issue with a representative and many times you can repeal a fee, especially a bogus one.  They want to keep as many customers as possible, but money talks.  Express your concerns--if your bank won't flex for you, check out smaller banks or credit unions who will take care of you and your money.