A checking account was once a place to store your money, but it's rapidly becoming a requirement. As global trends switch to electronic communication and "green" processes, direct deposit is becoming a requirement at more companies. This allows for a smooth transaction for both you and your employer, but checking accounts come with their own set of fees that can make that paycheck a lot smaller if you aren't careful.
Account Maintenance Fees
Though many companies have touted free checking as a major perk in the past, they are starting to come back around to monthly maintenance fees. Due to the change in overdraft regulations initiated in 2010, banks need to make their money somehow, and charging you a monthly fee just for keeping an account is their newest charge. You can also incur fees for receiving paper statements and conducting in-person transactions with tellers if your account prohibits those conveniences.
ATM Fees
Having money in your bank is nice for security, but be careful when you try to access your funds. If you don't go to an ATM that is specifically intended for users of your bank, you could end up paying just to access your money. Worse, you might get hit with two fees--one from the bank who owns the ATM and one from your bank for going to an ATM owned by a different bank. According to Bankrate.com, the average consumer paid $3.74 in ATM fees for an out-of-network withdrawal in 2010.
Overdraft Fees
The government banned overdraft fees as we knew them in August 2010, but it's still possible to overdraw your account. If you write a check but fail to account for the money that is tied up in the check, you'll be subject to an overdraft fee. The same applies to a transaction where you're not charged the full amount immediately, such as if you pay for gas at the pump or leave a tip at a restaurant on your debit card.
Avoiding Fees
Fortunately, most fees associated with your checking account can be avoided. Maintenance fees are usually waived if you have direct deposit, carry a minimum balance or complete a specific number of transactions. Overdraft fees can be minimized by linking your checking account with a credit card or savings account. ATM fees can be tough to avoid because you might not know of a bank-sponsored ATM in the area if you're not close to home, but most major banks have mobile phone applications that allow you to search for the nearest ATM administered by that bank. In addition, you can always ask for cash back on a debit transaction at a grocery store or pharmacy and avoid paying a fee entirely.
