Banking fees are on the rise as financial companies look for ways to gain additional revenue in a struggling economy. One such charge is a monthly account maintenance fee for individual checking accounts. While this fee isn’t new, many banks have re-introduced it to increase their cash flow. Signing up for direct deposit is a way to avoid this fee, but what if someone has more than one checking account? This is where paycheck allotments can be a valuable addition to a financial repertoire.
Each bank that charges a maintenance fee usually has a minimum monthly electronic deposit requirement that will qualify an account for free checking. That sum is usually in the $250 to $500 range, but can be greater or lower, depending on the individual bank. If postal employees want to maintain multiple checking accounts at one or more financial institutions, they could log onto PostalEASE and sign up for monthly allotments to distribute their paychecks among different accounts.
If someone wanted to deposit only the minimum amount necessary each month to maintain free checking in a second account, they could divide that requirement by two (two paychecks per month) and set up a bi-weekly allotment to match. If the minimum requirement is $500 per month, then the bi-weekly allotment should be $250.
For more information on allotments, go to http://liteblue.usps.gov.
What other ways can you suggest to reduce or eliminate extra fees at a financial institution?