How I Beat the Fees
We've seen our fair share of pesky fees. And we're not paying for them any more.
From Kiplinger's Personal Finance magazine, July 2008
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Want to know firsthand how Kiplinger's editors avoid pesky fees? Read on for some of their personal tips and share yours in the Comment Box below.
Dispute Bank Fees
"Last August I overdrew my Bank of America checking account at an ATM. Realizing what happened, I immediately called customer service to transfer funds from my savings account. I asked the rep to confirm that I wouldn't be charged a fee and wouldn't trigger my overdraft protection. Then I left the country on vacation and found out two months later that the rep had done no such thing. When I finally visited my local branch to set the record straight, the bank closed the line of credit and removed the overdraft fee and interest charges with minimal fuss, saving me $61, despite my glacially slow response." -- Elizabeth Ody
Outsmart ATM Fees
"When I use another bank's ATM, I'm hit with the double whammy of a fee (up to $3) from the bank that owns it plus $2 from my own bank. I fight the squeeze by keeping checking accounts at two different banks."
"My primary bank has branches along the entire East Coast, so whether I'm at home in Washington, D.C., or visiting family in Florida or New Jersey, I can easily find an ATM. I also have an account at a local bank with terminals at the supermarket, subway and local airports. I split my paycheck into two direct deposits and get no-fee checking at both banks. In the past five years, I can count on one hand the number of times I've paid ATM fees. Figure I've saved $260 a year based on a weekly transaction and a $5 fee." -- Mark Solheim
More Advice on Bank and Credit Card Fees
Rollover to Funds With Lower Fees
"If you have a 401(k) plan with a former employer, roll it over to a low-cost IRA. That's what I did, and so far I've cut the expenses of my fund portfolio by about $100. Fund fees in my old 401(k) were expensive compared with alternatives. The rollover expanded my selection of low-cost investment options, allowing me to improve my returns." -- Thomas Anderson
More Advice on Investment Fees
Avoid Phone Fees
"Nothing drives my husband over the edge like our son's overage charges for text messages. So we chose a plan with a flat rate for unlimited texting -- and we make our son pay the bill. That saves us (him) $50 a month. My husband and I both have prepaid cell-phone plans, to which we periodically add $20 worth of talk time. Lately, the state tax on the bills has gone from $1 to $1.20 because Maryland raised its sales tax from 5% to 6%. I'll remember that on election day." -- Janet Bodnar
Walk Away From a Processing Fee
"I had negotiated the price of a new car and was paying cash, so I thought the visit to the finance office to sign paperwork was just a formality. Halfway through the process, I spotted a sign that said 'Processing Fee: $300.' I got up to leave. 'Find the salesman,' I said. 'This wasn't part of the deal, and I won't pay it.' And that's all it took -- no processing fee. But you have to be ready to walk away." -- Fred W. Frailey
More Advice on Car-Purchasing and Car Rental Fees
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Reader Comments (6)
Posted by: Renee at 06/10/2008 08:39:28 AM
I gathered with my former college friends at the Paris hotel in Las Vegas. We called down and requested more wine glasses for one of our rooms. (There were two for water.) There was a $4 fee per wine glass, per usage (night). We needed 5. So we went to the bar downstairs, enjoyed a glass of wine and took the glasses back to our rooms.
Posted by: gladys at 06/21/2008 12:36:21 PM
I HAVE A SOLUTION TO THE CREDIT CARD PROBLEM, GET ONE CARD , LIKE A SEARS CARD, AND GET A DEBIT CARD, THAT CAN BE USED LIKE A CREDIT CARD, TEAR UP ALL THE REST. IF YOU CANT AFFORD IT , DONT BUY IT, SIT DOWN AND COUNT THE COST. CREDIT CARDS CAN PUT YOU IN A DEEP HOLE.IF YOU CAN LIVE WITHOUT IT , THEN YOU CAN SAVE UP TO BUY IT. STOP BEING OBTUSE. THINK BEFORE YOU BUY ANYTHING. GLM.
Posted by: Ron Pinette at 06/24/2008 10:57:40 AM
I recently purchased a new car and was hit with $104 processing fee. The mamager said it was a state law, had to be paid. Yeah sure! I told him lower the price of the car by $104. He did
Posted by: Ron Pinette at 06/24/2008 11:00:44 AM
Get a Credit Card that pays back 1% if you can afford to pay it off every month. Brought a new car and charged the down payment $5000 got $50 back.
Posted by: Victor Wachlin at 06/24/2008 01:12:53 PM
...you use the same things every month and your bill isn't the same or even close. you can be over charges by as much as 100.00...i know they (one cell phone company) stuck it to my for 4 yrs before i caught them . now i call them on the bill almost every month...
Posted by: rvlost at 06/24/2008 01:20:21 PM
I use my debit card at stores and opt to get cash back to avoid paying ATM fees.