If you’re looking for ways to reduce fees associated with banking services, explore these possibilities.
If there is one area of life where most people don’t enjoy surprises, it is at the end of the month when paying the bills. Whether you get a statement in the mail or are looking online at your statement, it can be frustrating to see fees that are higher than you expected. It doesn’t matter if it’s an unexpected fee on your cable bill, your cell phone or your banking services – ”surprise” fees can certainly be frustrating.
While other industries might not have ways to work around their fee structures, one benefit of the banking industry is there are methods you can put in place to minimize or even outright avoid banking fees related to their services.
Even individuals who have long-term banking relationships can be surprised by the fees that can be assessed when you use different banking services. To help you on your path to fee reduction, keep in mind the following common fees:
- Monthly Service Charge – Having a mobile banking app on your phone, access to ATMs, and much more means you could be charged a monthly minimum service charge. In today’s era of banking that could be $25 or more – or it could be free. Many banks, including First Horizon, offer ways to eliminate the monthly service charge.
- Wire Fees – Wires are commonly used in real estate transactions or to send larger sums of money. Wires can range from $25 or more but, depending on your banking provider, these could be free.
- Overdraft Fees – Overdraft fees are one of the more frustrating fees that customers can encounter. Maybe your deposit didn’t arrive on time and a check was cashed, causing you to be overdrawn, and now you have to pay $35 or more for that check clearing. Overdraft fees are common across many banks, but there are ways to avoid them with a bit of account configuration.
The reality is that life can happen quickly. It doesn’t matter if it is an unexpected car repair, a necessary trip out of town or a family member needing that wire done today – fees can happen quickly. The key to avoiding or lowering bank fees is to be prepared in advance, which will allow you to keep living how you want to, without the anxiety of wasting money on fees.
Set up a low-balance alert via text or email to help avoid banking fees
Mobile banking apps have become the norm, but many tools and features often go overlooked. Alerts can be delivered (from most mobile banking apps) via text or email and can help notify you of a variety of scenarios with your accounts. One of the most helpful alerts that can usually be customized is the low-balance alert.
This alert can let you know when funds reach a certain level (whether that be $50, $100, etc.), which can serve as your cue to deposit or transfer funds into your account or cut back on spending until your balance reaches your desired level again. The low-balance alert is an essential tool to help you prevent a scenario where you could be charged an overdraft fee.
While the low-balance alert is the one discussed here, take the time to evaluate the other alerts that can help you. You can usually define alerts that include a check deducted for a specific amount from your checking, available balance, etc. Look at the alerts available to you within your banking app and define what will help you the most.
Link bank accounts and set up overdraft protection
For many banking customers, it is common to have a checking and a savings account or even other accounts beyond that. Having more than just a checking account at a bank allows you to streamline your finances and budgetary skills to use each account for the best-intended purpose. For example, a savings account can help you save for a “rainy day,” and a Home Equity Line of Credit (HELOC) can allow you to use the equity in your home to pay for larger purchases.
If you have more than one account at the bank, consider linking them. At First Horizon Bank, you can link checking with your savings account or Home Equity Line of Credit (HELOC) with an Overdraft Services Agreement. Money is taken from the linked account to cover the overdraft.
How a First Horizon Bank ATM can help you avoid costly fees
Even with the large acceptance of credit cards and adoption of Mobile Pay services such as Apple Pay and Google Pay, there’s still a need for having cash on hand. If you get to a location that is “cash only” and you don’t have any cash on you, the fees for using the nearby ATM can really add up to the cost of $3-$5 each time you get cash.
As a First Horizon Bank customer, you can use our ATMs to easily get cash without a transaction fee.
Maintain a First Horizon Bank savings account to reduce banking fees
With some accounts, there are minimum balance requirements that can help you avoid service fees. For example, at First Horizon Bank, when you keep a minimum $250 daily balance all quarter, with the First Horizon Bank Traditional Savings account, the $5 quarterly fee is refunded within 3 business days when linked to a FirstView Checking account.
The key is to be aware of what fees could be charged so that you can position your accounts for success by avoiding unnecessary expenses.
Talk with a First Horizon Bank financial services representative
We will gladly review your usage of the services offered and make suggestions tailored to meet your needs and lower your fees. Contact a Banking Relationship Manager today at your nearest First Horizon Bank location to find out more about how to reduce your fees and get the most from our financial services.
