Fee-Free Banking
You can't manage your finances without a checking account. That's the first place your money goes, and it's what you use for your daily expenses. But what you can do is make sure you use yours correctly. Banks often charge fees just for having the ac- count and for other things like overdrafts. Your goal should be to avoid paying any fees. There's no reason to pay fees on your checking account.
Tips and Tricks:
There are multiple options available to skip the fees for maintaining the account; here are a few common ones:
Most banks offer a student option, allowing users under a certain age or in school to bank without fees. If one spouse fits the qualifications, you can open a joint account.
Meeting the minimum balance is another way to avoid a fee. If you can, set up an account that allows for a very low (a few hundred dollars or less) minimum balance so you can be sure of always having that amount available, and don't go below that amount. Another reason to look for a low minimum balance requirement is so that you can put your money elsewhere where it will earn more.
Direct deposits from a job help you avoid fees. Just make sure you won't be charged for months that you don't get paid, such as during the summer if you don't work then.
If none of these options work, ask the bank to print out a list of options-you'll probably find one that works for you.
If you're done with an account, make sure to close it immediately. I have a friend who left an account open with little cash left in it, and when he passed the student age, the bank started charging him fees. Soon, the account went into overdraft, and he ended up with a large bill of hundreds of dollars. Extreme? Maybe, but it can happen.
Terminating the Tab:
Sometimes the inevitable happens and you end up with an overdraft bill.
Don't rush to pay it. It's usually very simple to get a fee waived. All it takes is a quick phone call.
Remember: the bank isn't losing money by waiving your fee-it's like a fine-so there's a good chance they'll get rid of the charge if you ask correctly.
In order to stack the odds in your favor, it's helpful to use specific language when you're on the phone with a representative. Don't phrase your request as a favor. Saying "Can you please waive the charge?" makes it easy for them to say no. But if you're assertive and say, "I am requesting that the fee be waived," it's much harder for them to deny your request, since it was phrased as a statement, not a question.
If it's the bank's fault that there was a fee, you definitely shouldn't be paying. If you don't think banks make these types of mistakes, I can tell you that it happened to me twice. Once, the bank representative told me that I wouldn't have a fee and I was later charged. A different time (at a different bank), I was charged, and when I called, the representative said that the charge was a mistake.
If another company is at fault because of a glitch or mistaken charge, you can tell them that. Even if it was your fault, you can always say it was the first time and it won't happen again. Make sure to stress that you've been a loyal customer for five/ten/fifteen years. If none of this is true, you don't have to say anything, but you should still make that phone call. It doesn't cost anything to ask, and they can get rid of the fee with the click of a button
Making it worth the time:
I once had a charge for $37-which in the grand scheme of things is a small amount-and I got it waived in five minutes. If you do the math, that comes out to $444 per hour. On the other hand, if you'll be spending an hour on the phone to dispute a $5 charge, skip the phone call.
If saving the money isn't enough of a motivation, tell yourself that you'll reward yourself with half the money that day. So, if it's a $15 charge, take $7 and buy an iced coffee to celebrate saving that money. It's free! If you really feel that it's too much of a hassle, ask a friend who won't mind to do it and split the money.
The Ma’aser Account:
Besides the checking account, a ma'aser account is a very helpful tool. Before I set one up, I had a hard time keeping track of my ma'aser. I would give tzedakah using my debit card and then need to go back and check my bank statement, adding and sub- tracting to see how much I gave and how much more I still need to give. Now, I just take off the amount from my paycheck and transfer it to the ma'aser account. An added benefit of a separate account is having a separate debit card so I can give tzedakah easily, and it comes straight from the ma'aser account.
The Annual Account:
A third type of important account gives you money for the tighter sea- sons of the year. This is important because you may have some months with less income or some months with more expenses. For example, a teacher who only gets paid 10 months a year can send one sixth of each paycheck to this account. When the summer comes around, they'll have the same money those two months as they did every other month. Many people work on commission, and their income fluctuates from month to month. In such a case, it's important to estimate how much they need each month and then save for the months they'll be earning less.
If you estimate your additional expenses and put money away in the annual account every month, you won't be fazed when a month with higher expenses, such as Tishrei, comes around. You'll be able to go shopping for Yom Tov with the dedicated debit card, knowing that you have the money to cover your expenses. This annual account should be a high-yield savings account with a low minimum balance so you can profit off it.
