Cutting out fees on transaction accounts

The average fee take for everyday transaction accounts it's $4 a month. Plus customers must ensure that transaction fees are monitored to avoid a nasty surprise at the end of the month. Budget Freedom managing director Martin Grace says people need to understand what fees apply to their account. "Try to minimise doing the transaction types that attract fees," he says. "Reduce the number of times you access your account. How about once a week withdrawing enough cash to cover your week's general living expenses? The advantage is that you only make one withdrawal each week. This strategy helps to reduce any overspending."

Infochoice.com.au financial services analyst David Lalich says most providers offer low-cost transaction accounts for people who do most of their banking over the internet and phone rather than in a branch. "Many banks will often waive the account-keeping fee if a minimum monthly deposit amount is transferred in each month," he says. "Customers should do their research to identify the number and types of fee-free transactions to avoid paying unnecessary charges."

Source: The Age

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