I know, I know, we’ve all been in that situation where cash is needed, an ATM is available, but it’s not your bank. You’re ready to get smashed with an insane overdraft fee, but you’ve got no choice, you need the bills.
So you take the hit and basically GIVE banks free money. We need to stop doing that because banks are making BANK on our laziness.
America’s three biggest banks — JPMorgan Chase (JPM), Bank of America (BAC) and Wells Fargo (WFC) — earned more than $6 billion just from ATM and overdraft fees last year, according to an analysis by SNL Financial and CNNMoney.
That equates to $25 for every adult in the United States.
This free money has become such an issue, and one that people tend to not get as mad about as they should, that it’s even come up on the presidential trail.
There’s so much frustration over these fees that they have become a presidential campaign issue. Hillary Clinton called ATM fees “usurious.” Bernie Sanders vowed that if he’s elected president, he will cap ATM fees at $2.
Banks also make a ton of money on overdraft fees — that’s when people try to use money THEY DON’T EVEN HAVE. America’s big three banks made over $5.1 billion last year from overdraft fees alone.
So let’s all agree to stop making the rich, richer and do these two simple things to save ourselves billions of dollars.
- Avoid ATM fees by just going to your own bank and taking out the money you’ll need until next paycheck. If you’re not sure how much you’ll need, start keeping a budget. Like an adult. If that’s too much, set aside extra time to go find a branch of your bank near you. Last option, don’t take out the money.
- To avoid overdraft fees, keep track of the money you’re spending and STOP TRYING TO SPEND MONEY YOU DON’T HAVE.
Dummies.
[via CNN Money]