bank fees

Banking can get expensive, but avoid those pesky fees with these tips from Wise Bread.

In recent years, we’ve seen a lot about the rising costs associated with banking. Looking for ways to increase profits, banks are turning to fees at an increasing rate. Indeed, fees represent one of the major sources of revenue for many banks, and a recent survey from MoneyRates.com points out that fees are in fact on the rise.

Some fees, such as overdraft fees, are obvious, while others might be a bit sneaky. In any case, it’s important to pay attention to the terms and conditions of your account, and check your statements and communications from your bank for information about fees.

If you have any questions about fees related to your account, speak with a teller or other bank representative. In the meantime, though, keep an eye out for these 12 annoying bank fees, and do your best to avoid them.

Related: Avoid Bank Fees

1. Overdraft Fee

This fee is charged when the bank clears a transaction even if there isn't enough money in your account. According to Consumer Reports, the average bank overdraft fee is approaching $35.

You can decline overdraft services and avoid the steep fee, but that means your debit card transaction will be denied. Another option is to link your checking account to a savings account or a line of credit. Money is automatically transferred into your checking account to cover the overdraft. There is often a fee for this transaction, too (usually $5 plus interest charges on a line of credit), but it’s much smaller than paying an overdraft fee.

Of course, the best defense is to track your spending and make sure you have enough money in your account.

Read on for more.

Although Bank of America and other banks have agreed to not charge customers monthly debit usage fees, you shouldn't get too comfortable. Apparently, these financial establishments are still trying to earn profit without customers catching on. Here are some of the examples reported by The New York Times:

• Lost BofA debit card requires $5 replacement fee and a $20 rush delivery fee.
• BofA MyAccess checking accounts raised costs by over $3 a month.
• US Bancorp charges 50 cents a check to deposit money with a mobile phone.
• Wiring money to bank accounts will cost TD Bank customers $15 per transaction.

Banks are now under pressure to raise their fees by at least $15 to $20 per customer in order to make up for the $12 billion loss of profits incurred by the new consumer protection rules, says the Times. It seems kind of ironic that the rules meant to protect customers from unfair fees have resulted in more creative and sneaky fees by banks. This is causing a good number of customers to flee big banks and put their money into credit unions, online banks, and community banks. Have you closed your big bank account in the last few months?

Many are unhappy with the debit card fees introduced by banks that want to reap more profit from their customers. I'm sure by now you've heard about the $5 monthly fee Bank of America is planning on charging for debit card usage. Other banks plan to follow suit and consumers have been lashing back, threatening to cancel their accounts.

According to a SavvySugar poll, 91 percent of readers are unwilling to pay the extra debit card fees and will resort to methods such as using a credit card or cash. About 44 percent say they plan on switching banks to avoid paying fees.

If you're looking for a debit card that won't charge you for your swipes, here are three suggestions:

PayPal: If you already have a PayPal account, you might want to consider the PayPal Debit MasterCard. The debit card will tap into your funds in your account or the bank account that's synced with your PayPal. There are no fees when using this card with businesses that accept MasterCard. Keep in mind that there are fees for withdrawing money from ATMs, unless it's a Maestro or Cirrus ATM. You'll also be charged fees if you use the card when you're out of the country.

ING Direct: ING Direct customers not only get decent interest rates (0.3 to one percent for checking accounts, depending on the amount of money in the account), but they can also opt for a relatively fee-free debit card. You won't get charged when you use your debit card to purchase items and there are over 35,000 ATMs around the country that allow for fee-free withdrawals. To get the card, all you need to do is sign up for a checking account with ING. You'll also be charged foreign transaction fees with this card. If you're not an ING Direct account holder, be sure to check out other online banks — they will likely offer similar deals.

Read on to find out more.

I'm sure your ears perk up when you hear about debit fees being reduced. However, the move is probably more beneficial to retailer big wigs, and not everyday consumers like you and me. The "swipe" fees are charged every time a customer chooses to use their debit card. Currently, the fee stands at 44 cents, but a recent verdict has brought it down to 21 cents.

This lowered rate will cost banks about $9.4 billion in revenues, according to CardHub.com. However, it's not certain if consumers are going to feel any effect from this. For example, since these customers don't really notice these fees, businesses might pocket the savings instead. In fact, this new turn might actually hurt us, because banks might charge customers higher fees on other transactions in order to recoup from the loss. Frank Keating, president of the American Bankers Association tells the New York Times:

"The final rule still represents a 45 percent loss in revenue that banks use to provide low-cost accounts to our customers, fight fraud and maintain our efficient U.S. payments system . . . Consumers will see higher fees for basic banking services, and banks — particularly community banks — will still feel the revenue pressures that this rule will cause."

It's sad that we've been penalized for fees so much that most people are finding it hard to tell which fees are real or fake. In fact, in a recent ING Direct survey, none of the 1,000 participants managed to correctly categorize bank fees. Here are some ways ING advises to avoid facing the real fees:

• Read the fine print when you sign up for checking accounts.
• Avoid the automatic opt-in overdraft protection and do your best to live within your means and not overspend.
• Take note of what your balance is.
• Locate and use ATMs that won't charge you a fee.
• Automate payments so you'll be able to better monitor your balance.
• Join a bank that's "fee-free."

CNN recently created a list of their top nine banking fees pet peeves, which includes the fee you have to pay when you forget to update your address and the one for replacing your debit card. My last annoying bank fee was a $30 fee for canceling a check, which wasn't something I could've prevented. What about you — what was the last fee your bank charged you?