PITTSBURGH,None — When it comes to your checking account, do you feel like you're being hit with excessive fees? Banks are changing the rules and that can be costly if you make a mistake. Target 11 Consumer Investigator Robin Taylor uncovers the best ways to avoid checking charges.
Some of the biggest banks in the country are doing away with free checking. Regulatory changes that have taken place recently have cut into their profits, so they're finding new ways to make money and that's often through fees.
Taylor did some digging and broke down what banks in our area are doing.
PNC, the largest bank area, still offers free checking as does First Commonwealth Bank. Checking is free at Dollar Bank if you get online statements and at Fifth Third Bank if you have direct deposit.
But many banks, like Citizen's, require a minimum balance or a certain number of debit card purchases for checking to be free.
That's because new regulations, designed to protect consumers, mean banks are making less money. One proposed change would limit what they can charge for debit card transactions.
As banks attach more strings to their accounts, some customers are turning to credit unions which offer better rates because they're non-profit.
"Our totally free checking is just what it says. It's totally free," said Kelly Friedl of Riverset Credit Union.
Even at a credit union you could be hit with a fee if you overdraw your account and that's why experts recommend overdraft protection, whether it's from a savings account or a line of credit.
Here's a look at the difference. The typical fee for insufficient funds is $36. While an overdraft transfer from a line of credit is $10.
PNC has what's called Virtual Wallet. If you've got a low balance, they'll send an alert to your phone.
"It really enables them to stay on top of their money by getting alerts. An alert will be sent if have a danger day where you're running low and you might be susceptible to fees if you don't change your spending or put more money in your account," said Todd Barnhart with PNC.
But what if you deposited a check and it still hasn't cleared?
"The ways to avoid that is to have direct deposit. If you have direct deposit your funds are available immediately," said Friedl.
That gives you instant access to your funds, but withdrawing that money can get expensive if you're not careful.
"One of the other big things is to make sure you're using ATM's within your network. $5 is the newest fees we're seeing out there," said Friedl.
Taylor recommends using your bank's automatic teller machine or getting cash back when you make a purchase. Online banking also makes it easy to check your account balance, so you don't have an unwanted surprise.
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