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Answer:
Dear
BuyandHolder,
Good
question. And you're not alone -- bank fees across
the board have been rising steadily throughout the
year.
According
to a recent survey conducted by Bankrate, a withdrawal
from an ATM where you do not have an account (also
called "out of system") now costs on average $2.91.
That' s up 9.4% from last year. (That dollar amount
does, however include the fee your own banks normally
charges.)
You
might be interested to know that five years ago, the
average fee to use another bank's ATM was $2.55.
And,
according to the survey, there are very few banks
left that do not charge for ATM transactions. Of the
247 banks surveyed, 96% now charge something, even
if it's just $1.
Other
interesting figures released by Bankrate:
-
The average fee for a bounced check is now $26.90.
And, if you're the type that continually bounces
checks, the fee is likely to be even higher.
-
The average minimum you need to keep in a non-interest
bearing account to avoid a fee is $267.78, up 30%
(yes, that's right, 30%) over last year.
You
and your bank
You
asked what this means for you personally. First of
all, obviously use an ATM that's in your bank's system.
Second, limit how frequently you stop at an ATM --
once a week would be a sensible goal.
Third,
balance your checkbook on a regular basis. I don't
believe it's necessary to balance it down to the last
penny -- you can round out the numbers. But you want
to track your balance on a regular basis so you never
bounce a check.
Fourth,
keep your minimum deposit above the level where fees
kick in.
Fifth,
look for a bank that pays an above average savings
rate; that does not have a minimum requirement for
savings accounts and bank CDs; and that does not impose
fees for service. You can find consumer-friendly banks
listed at www.bankrate.com.
Sixth,
find out how much your bank is charging for checks.
You may be able to negotiate free checks or a lower
rate. Sometimes seniors who ask get better deals,
even free checking. If you can't negotiate a lower
price, order your checks from a check printing service.
Deluxe Checks (www.deluxe.com),
for example, has been around a number of years.
About
bank stocks
In
terms of investing in the industry, keep in mind our
general advice: never put all your eggs in one basket.
Any investment in the banking industry should be offset
by investments in two or three other industries.
And,
if you decide to buy a bank stock, select one that
has posted continually increasing earnings and that
has a low debt level. While you should read the annual
and quarterly reports of the major banks, don't overlook
smaller, local banks -- ones that are prosperous and
conservatively managed. Occasionally such banks are
also candidates for takeover by larger institutions.
You'll
find excellent independent coverage of bank stocks
in the weekly research publication, Value Line,
available in most public libraries. Value Line's bank
analysts regularly revise their reports on individual
banks, rating them from 1 to 5 for "timeliness" and
"safety."
For
further details: www.ValueLine.com.
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