Skip to main content

What fees should I avoid when choosing a new bank?

What fees should I avoid when choosing a new bank?

Find Help

More Items From Ergsy search


Choosing a New Bank in the UK: Fees to Avoid

Introduction to Banking Fees

When selecting a new bank in the UK, understanding potential fees is crucial. Hidden charges can erode your savings over time. Awareness allows you to make an informed decision.

Banks offer diverse accounts, each with different fee structures. It's essential to assess these fees against your banking habits to minimize unnecessary costs.

Monthly Account Fees

Monthly account fees are commonly charged for certain banking packages. Many banks offer free basic accounts, but additional features may incur charges.

Consider your usage and needs before opting for a fee-incurring account. Sometimes, the benefits outweigh the costs, but frequent low-balance users may suffer.

Overdraft Charges

Overdraft fees can significantly impact your finances if not managed correctly. Banks may charge for arranged and unarranged overdrafts differently.

It's vital to understand the terms and conditions of your overdraft facility. Compare overdraft charges across banks to find the most cost-effective solution.

ATM Withdrawal Fees

While many UK banks offer free ATM withdrawals, some charge for using out-of-network ATMs. These fees can add up if you frequently withdraw cash.

Be mindful of network affiliations and seek banks with wide-reaching free ATM networks. This can reduce your potential cash withdrawal costs.

Foreign Transaction Fees

If you travel abroad or make international purchases, foreign transaction fees are important to consider. Banks may charge a percentage or flat fee per transaction.

Opt for banks offering low or no foreign transaction fees if international spending is part of your lifestyle. This can lead to substantial savings over time.

Closure and Transfer Fees

Some banks impose fees for closing accounts or transferring funds to another bank. These fees can deter you from switching banks efficiently.

Check the bank’s terms regarding account closure to avoid unexpected charges. Fee-free options grant flexibility and encourage competition among banks.

Conclusion

Carefully review each bank's fee structure before deciding. The right choice depends on your financial habits and needs.

By focusing on minimizing banking fees, you ensure your finances serve you effectively. This can lead to enhanced financial wellbeing over time.

Frequently Asked Questions

What are monthly maintenance fees?

Monthly maintenance fees are charges banks apply to maintain your account. These can often be avoided by maintaining a minimum balance or setting up direct deposit.

How can I avoid ATM fees?

Choose a bank with a large network of ATMs or one that reimburses out-of-network ATM fees.

What are overdraft fees?

Overdraft fees are charges for spending more money than you have in your account. Some banks offer overdraft protection services, which can help you avoid these fees.

Are there fees for paper statements?

Yes, some banks charge for paper statements. Opt for electronic statements to avoid this fee.

How can I avoid foreign transaction fees?

If you frequently travel or make purchases in other currencies, choose a bank or account with no foreign transaction fees.

Are there fees for account closure?

Some banks charge a fee if you close your account shortly after opening it. Check for any account closure fees and required account maintenance periods.

What are wire transfer fees?

Banks often charge fees for sending and receiving wire transfers. Consider using other forms of electronic transfer which might be cheaper.

Can I be charged for inactivity?

Some banks charge inactivity fees if you do not use your account for a certain period. To avoid these fees, make regular transactions.

Do banks charge for excessive transactions?

Certain savings accounts limit the number of transactions per month and charge fees for exceeding that limit. Check your account terms to avoid these fees.

What is a returned deposit fee?

This fee is charged when a deposit you make bounces, such as a bad check. It's important to verify the sources of deposits.

Are cash deposit fees common?

Some banks charge fees if you deposit cash above a certain limit. Look into these if you handle large cash transactions regularly.

Do banks impose fees for early account withdrawals?

Certificates of Deposit (CDs) often have early withdrawal penalties, so ensure you understand the terms before withdrawing.

Can insufficient funds fees be reduced?

Some banks offer overdraft protection or alerts for low balances to help avoid these fees.

Is there a fee for replacing a debit card?

Yes, some banks charge for replacing a lost or stolen debit card. Check your bank's policy and keep your card secure.

Do banks charge for outbound transfers?

Banks may charge fees for transferring money out of your account to another bank. Verify these fees when setting up external transfers.

How do I know if a checking account has fees?

Review the fee schedule provided by the bank to identify any potential charges associated with the checking account.

What are account service fees?

Service fees are general charges that could apply for account assistance or maintenance. Always clarify these with your bank before opening an account.

Is there a minimum balance fee?

Some accounts require a minimum balance to avoid a fee. Choose an account where the minimum balance requirement is manageable for you.

Are there fees for using mobile or online banking?

While rare, some banks might charge for certain mobile or online banking services. Ensure you understand any charges before utilizing these services.

Do banks charge for account alerts or notifications?

Typically, banks do not charge for electronic alerts. However, verify with your bank to ensure there aren't any hidden costs.

Useful Links

Important Information On Using This Service


This website offers general information and is not a substitute for professional advice. Always seek guidance from qualified professionals. If you have any medical concerns or need urgent help, contact a healthcare professional or emergency services immediately.

  • Ergsy carfully checks the information in the videos we provide here.
  • Videos shown by Youtube after a video has completed, have NOT been reviewed by ERGSY.
  • To view, click the arrow in centre of video.
Using Subtitles and Closed Captions
  • Most of the videos you find here will have subtitles and/or closed captions available.
  • You may need to turn these on, and choose your preferred language.
Turn Captions On or Off
  • Go to the video you'd like to watch.
  • If closed captions (CC) are available, settings will be visible on the bottom right of the video player.
  • To turn on Captions, click settings .
  • To turn off Captions, click settings again.

More Items From Ergsy search