Avoid being ripped off by your bank with fees and charges.

If you are like most Australians you will have noticed that your bank is making an art of milking your bank accounts dry. In fact Australian banks made $22 billion last years in fees and charges. Not a bad earner.

So if you want to stop, or at least control the amount of money they take from you each year follow these simple strategies.

1 Close all those accounts that are no longer necessary

I had several accounts that are no longer required. If you have accounts that you no longer need, close them now. It will save you money and make life easier at tax time.

2  Check for fee creep

Banks will sign you up on a low fee structure and then change you up to higher fees later.  When this happens call them and complain.

3  Use fee-free accounts

Can you get fee free accounts? These may make sense as a trade off against interest earned on the account.

4 Don’t allow for credit cards or account to be overdrawn.

Banks love to get this free money. Don’t let the.  State that you will not require an overdraw, unless the Bank gives it with honour fees being charged. Tell them that if there is no funds available in the account they are not to allow the transaction to be made.  Ask for this agreed change in writing.

5 Use your right to fee free accounts

Most banks offer fee-free accounts to pensioners, students, children and people living in regional and remote areas. They also rebate fees and give serious ‘relationship’ discounts if you buy their home loans, personal loans, cards, term deposits etc. Check to see what it takes to qualify.

6 Use an all in one Mortgage account [Line of Credit]

Most popular is packaging loans and transaction accounts in a line-of-credit account which can waive fees. Disciplined savers who pay their salary into an all-in home loan can pay it off more quickly.

7 – All keep above any  minimum balance 

Keep your account above the minimum monthly balance to avoid paying over limit fees. Open an on-line savings account if you are saving up for a holiday or home loan deposit [the banks have been forced to offer up to 7 per cent interest at call to compete with ING Direct].

8 – Know what incurs what charges

Some accounts offers any unlimited or fee-free transactions for electronic, telephone and Internet banking or branches and use the channels that are free. 

Know how many free transactions you get each month and what type of transactions they apply to (CBA now charges for over-the-counter withdrawals) and bank within your limits. 

9 Check your statement for changes and fees

A quick review of your fee statement will suggest a strategy to cut fees. Internet banking can be fee free for paying bills and transferring money between accounts, so you don’t have to go to the branches.

10 Only use to your bank’s ATM

Most banks will charge you a fee of up to $2.00 for using another institution’s ATM – and they aren’t counted among free transactions, and even keep charging these fees in defiance of the RBA. 

11 Get your cash out with your petrol and grocery purchases

Use EFTPOS to get cash out on a regular basis when buying your groceries at the supermarket.