It’s great to have somewhere to keep your well-earned cash, and it’s even better if you’re not charged high fees to keep it there.
Low-fees bank accounts give you the same opportunities as other accounts, but let you avoid the charges you might find from other accounts.
What are low fees bank accounts?
Low-fee bank accounts are transaction accounts that charge fewer fees than other accounts. Bank accounts with low fees may be an attractive offer for those who wish to open an account but aren’t willing to pay monthly maintenance fees.
What are typical bank account fees?
While it’s possible to find a bank account with low fees, you’d be hard-pressed to find a bank account with no fees at all. There are a few different fees that are typical of most bank accounts.
One of these fees is the monthly maintenance fee. Banks may charge you a small sum once a month for the convenience of having a transaction account. However, not all accounts will charge this monthly fee. Many banks offer certain accounts that waive the monthly fee altogether.
Another possible bank account fee is an ATM withdrawal fee. Most banks don’t charge you if you withdraw from one of the bank’s affiliated ATMs, but typically add a fee if you use an ATM by another bank. That’s why it’s important to make sure there are affiliated ATMs nearby when you sign up for a bank account.
You may also run into fees like cheque deposit and branch withdrawal fees. A cheque deposit fee occurs when you need to deposit funds into your account via cheque. Branch withdrawal fees may apply if you withdraw cash in person at a bank branch rather than from an ATM.
How do you avoid bank account fees?
You’re unlikely to avoid bank account fees altogether. At a minimum, most transaction accounts will incur a withdrawal fee for using an unaffiliated ATM.
So if you’re determined to open a bank account without fees, you may have to resign yourself to looking for a low-fees bank account rather than one with no fees at all.
Who should apply for a low-fee bank account?
Anyone can apply for a low-fee bank account, but the absence of high fees might be especially helpful for people who want to open a transaction account but are unwilling to pay much money to have one.
Bank accounts with low fees are perfect for beginner bankers who are starting to manage and track their finances and would rather not be charged a monthly fee.
What is a transaction account?
Low-fee bank accounts are transaction accounts that can be used to house your salary, pay for purchases, pay bills and withdraw cash. Also called ‘everyday accounts’, your low-fee bank account will usually come with a debit card that makes your everyday spending quick and easy.
Many banks also offer online access to your transaction accounts. Online or on their bank app, you’re able to view your account balance and recent transactions, make money transfers and manage your spending. Certain banks even allow you to order cash to an ATM location near you.
How do you open a low-fee bank account?
Opening a low-fee bank account is much like opening any other account. First, you’ll need to decide which bank account suits your needs and interests.
After you’ve done your research and made a choice, you can then apply to open the account through the associated bank. These applications can usually be done both online and in person. You’ll likely need a form of identification and your personal details to complete your application.
If you’re a student and want to apply for a student bank account, you’ll also need proof of study. Typically, your student identification card will suffice, but be sure to check with the bank to see if they require anything further.
How do you put money into your low-fee bank account?
Putting money into your bank account is a matter of making deposits. These deposits can be automatic, such as your salary from an employer. Many people decide to have their salary deposited directly into their bank account so that they have the funds to make everyday purchases and pay bills.
You can also manually deposit money into your account by transferring from another account or depositing cash at a bank branch. After you’ve deposited your funds into your account, you’ll be able to see your balance and make purchases accordingly.
If you’re looking for a bank account that won’t charge you high fees, then a low-fee bank account may be your solution. Offering all the benefits of other accounts, your low-fee bank account will let you manage your money without the monthly fee.