How Banks Work
It's All About the Service
If you are currently paying for services from you current banking institution, then it may be time for you to switch it up. You shouldn’t have to spend any of your money on a service that is supposed to protect it. This should be a free service for you, simply because of the fact that you are actually doing the banks a favor by being a member of their institution.
Banks make the most of their money through lending and investments, not through fees they charge for their loyal customers. They make their profits by issuing loans to both businesses and the general public. It is through these loans and the interest rates that come with them, that keeps the banks in business. Banks need customers such as yourself, to use your hard earned savings to fund these loans. So it doesn't make sense that they charge you for any service that banks provide. Because it is without you, that they would crumble.
Every dollar you store at your current institution is being used in this manner. This is why I see it as more of a favor that you are with a specific bank. You have the ability to switch it up and choose a competitive banking institution, hopefully one that is free. Show them that these fee's are ridiculous and that you can still have your money stored safely without them.
These Should Always Be Free
Checking accounts and savings accounts should always be free to use. If you are with an institution that is charging you to use these, then you need to switch. You are throwing away money when you don’t need to.
There are hundreds of banks and credit unions out there with no account charges that will gladly accept you as a member. It is a very competitive industry, so finding one shouldn’t be too difficult for you. Just make sure to do your proper research and ensure that they are a strong institution all throughout.
Think Big When Selecting
I have three banks/credit unions that I have my money stored in. The only reason why I have three, is because I’ve moved a lot growing up and rather than terminating my accounts, I knew it would be better to keep them and continue to use the perks of the memberships should I ever need them. One of my institutions offers an online service that allows me to see all my accounts and investments through their online portal. It allows me to keep my finger on the pulse throughout all my finances. It is a very powerful tool and it allows me to see my total worth, which is very convenient. (You can check out more on seeing everything in one spot through the post Know What You’re Worth All In One Spot.)
When choosing a new bank, you want to select a bank or credit union that you can access anywhere. You should find one that creates the most convenience for you with absolutely zero cost.
Withdrawing: My credit union has partnered with multiple other institutions to provide free ATM withdrawals at any of their locations. So any time I need cash, I can freely withdraw it without facing any charges or penalties. I just need to make sure to go through a certified ATM, which is easily identified through their App.
Depositing: If you don’t already, you need to find an institution that offers mobile depositing for checks. I found that this has the most value in terms of convenience. The combination of free ATM withdrawals and mobile depositing has allowed me to never step foot in a bank again. Sweet right?
Switch It Up
If you find that you are one of the many that are paying for these services, then it may be time for you to switch it up. And if you’ve read getting2zero: Debt Free with a College Degree, then you know that plugging the hole in your bucket is the easiest way to get to zero. What’s easier than getting rid of an expense that you shouldn’t be incurring in the first place?
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