How to avoid wasting money on checking account fees

CHICAGO (WLS) — According to a new study from BankRate.com, more than one in four checking account holders pay monthly service fees to their banks.

On average, it could cost those consumers $24 per month, which is $288 per year. Here is a quick tip on how to avoid checking account fees:

• Do your homework before you open the account. Only about half of non-interest checking accounts are free, but the vast majority become free when certain requirements are met, such as maintaining a set minimum balance or having your paycheck directly deposited.

• Ask yourself what works for you. If you withdraw cash a lot, find a bank that reimburses you for out-of-network ATM fees. If you rarely visit a bank, make an account with an online bank. Also, online banks may have lower account fees!

• Regularly check your account balance, or set up low-balance alerts. Two of the most common charges are overdraft fees and non-sufficient funds. You could also try to find a bank that waives overdraft fees.

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