5 bank fees you pay explained
How many times have you checked your bank statement and discovered that you’re paying a fee you didn’t know about? We’re pretty sure it has happened at least once!
Whenever you open a bank account, the fine print usually explains what fees or charges the bank will deduct from you on a monthly or yearly basis.
You might be paying an annual fee for a credit card, but traditional banks charge for things such as; foreign transactions, going below your account’s minimum balance or ATM fees. It usually depends on the type of account you have, but you are probably paying fees that might seem unnecessary.
Understanding what and why you’re paying these fees can be tricky. We’re here to explain what are some of the fees you might be paying and why your bank is charging you for these. They might not all apply to you; it usually depends on your account but you’re better off knowing!
- Minimum balance fees
A bank usually offers several types of accounts, each with its own perks and benefits depending on what you’re looking for. Some accounts have a minimum balance which means that you need to have a certain amount of money in your account to avoid paying the fee.
This can be a way for you to force yourself to save more money, by keeping the minimum amount in your account to avoid any extra charges. With every paycheck you can set aside the minimum amount and transfer them with your next paycheck into a savings account to take advantage of the benefits and interest rate.
2. Hard copy statement fees
A bank statement is basically a history of all your transactions, digital payments, monthly bills and ATM withdrawals. Many banks end up sending you a hard copy by mail every month, which you will pay for.
In times like these, everything has gone digital and you can avoid these fees by opting out and ask for an e-statement instead. An e-statement is automatically sent to your email address every month without charging any fees. Save a few trees and ask for an e-statement and you’re good to go!
3. ATM fees
If you want to withdraw cash, it’s always best to use an ATM that is affiliated with your bank. If you happen to use an ATM that belongs to another bank whether local or otherwise, that bank will charge you a fee for this transaction. It usually depends on your account type, but some accounts allow you to withdraw from any ATM machine without paying any fees for a certain number of times.
Withdrawing money from a foreign ATM machine also comes with its own charges and the currency exchange rate which will cost you. The best thing to do is just pay using your credit or debit card, the charges are less and you can track every single penny you spent throughout your whole trip.
If you’re a globetrotter and find yourself jumping from flight to flight quiet often, you can ask your bank to issue a foreign currency credit card to avoid unnecessary fees. You can issue it in either USD, GBP or Euro and you won’t need to worry about exchange rates.
4. Foreign Transaction Fees
Foreign transaction fees are charged to cardholders whenever you perform a payment oversees. Basically, it’s a fee you have to pay in order for the foreign bank to process and convert the payment from the country’s currency to Jordanian Dinars.
The fee varies from bank to bank however; the standard has become 3% and you can always double check by reading the terms and conditions or by calling the bank’s customer support to get the gist of things. These fees can be avoided if you issue a foreign currency credit card like we mentioned earlier, especially for people that travel often it’s always a good idea to save on foreign transaction fees!
5. Lost card fee
It happens often that people lose or get their cards stolen. The first thing you do is freeze your card, whether it’s through your bank’s mobile app or by calling a hotline. To issue a new card, you’ll be charged 5 JOD to replace your damaged or lost card.
