The following is a guest post.
Most people manage to go through life, managing their money, without racking up any bank account fees. However, it is very easy to incur fees on your current account, simply because you don’t know the kinds of transactions and other things that banks charge for.
To help you avoid paying unnecessary fees and charges wherever possible, here is a quick guide to bank account fees.
If you exceed the limit on the overdraft that you have agreed with your bank (this is usually decided when you open a bank account), the bank could potentially charge you for doing so. The charge for exceeding your overdraft limit can add up to hundreds of pounds, so you need to avoid it if possible. If you think you’re going to exceed your limit, speak to your bank first and see if you can get an overdraft extension.
Returned transaction charges and unpaid item fees
If you try to make a payment when you’re overdrawn, your bank may decide not to process the payment. Unfortunately, this can incur you an unpaid item fee or a returned transaction charge.
Foreign transaction fees
If you use your debit card to withdraw money from an ATM or to pay for something whilst abroad, you’ll often find that your bank charges you a fee for doing so.
Fees for same-day transfers
If you need to transfer money to another bank account within the same day, you can use your bank’s Faster Payment Service (FPS), which is generally free. However, not all banks offer this, instead choosing to charge fees for same-day transfers.
Photo by: Chase Lindberg Photography