After Divorce, Opening Bank Account

    It may seem a bit counter-intuitive, but the less money you have, the more the banks charge you in fees, especially if you have a below average credit score and don’t quality for overdraft protection in conjunction with your checking account. So, if you’re trying to rebuild your financial stability after a divorce, you’ll want to find a bank or credit union that offers high interest rates, low fees and checking and/or saving account options that best meet your needs.            

If you walk into any bank or credit union in hopes of opening an account, you’ll quickly discover you have a multitude of choices for each type of account. You’ll probably see promotions for “Totally Free Checking” or “Checking with Interest,” but to obtain the awesome deals being advertised, you typically need to open the account with a high initial deposit, and then maintain a high balance. Otherwise, the account becomes subject to a variety of different fees and ongoing charges that add up quickly.

According to Bankrate.com, a conservative estimate is that a typical American family pays between $600 and $1,000 per year in service charges to maintain their checking, savings and credit card accounts, along with their debit/ATM cards. This does not include interest and fees associated with going over-limit or making late payments. Americans currently pay more than $4.4 billion per year in ATM fees.  


A WIDE RANGE OF FEES

Before opening a checking or savings account at a local bank, shop around for the best deals, taking into consideration that banks now try to charge customers for a wide range of services. Some of the potential charges you could be hit with after opening your checking account include:  

• Monthly account maintenance fees        
• ATM fees (if you use the bank’s own ATM network)
• ATM fess (if you use a machine outside of the bank’s own network) \
• Teller fees (for using an in-person teller as opposed to an ATM or online banking)
• Charges for using a debit card more than a pre-determined number of times per month
• Fees for writing more than a pre-determined number of checks per month 
• Fees if your account balance drops below a pre-determined dollar amount 
• The cost of ordering or reordering checks 
• Charges associated with making more than a pre-determined number of deposits per month 
• The cost to issue a stop payment on a check you’ve written
• Overdraft fees and bounced check charges
• Online banking and online bill payment fees  

12 THINGS TO CONSIDER BEFORE OPENING A CHECKING ACCOUNT  


In addition to understanding all of the potential charges and fees that may be associated with a new account, when shopping for the best deals, you also want to take into consideration the following:  

1.    The interest rate offered for checking or savings. (Bankrate.com reports banking fees are often lower if you opt to open a non-interest earning checking account.
2.    The minimum monthly balance required to maintain the account in order to avoid extra fees.
3.    The minimum deposit required to open the account.
4.    Whether you qualify for overdraft protection, and if so, what fees and interest rates apply if you tap into it.
5.    Whether you receive any rewards for using your debit card to make purchases.
6.    Whether a checking account can be linked to a separate savings account (or Money market account), and if so, whether or not it’s free to transfer money between accounts.
7.    The availability of customer service representatives at local branch offices, online and over the telephone. Some banks offer telephone customer service 24-hours-per-day, seven days-per-week, while others offer more limited hours.
8.    The hours and days of operation of your local bank branch (when tellers are available to serve you) and the locations of in-network ATM machines near your home, where you shop and where you work.
9.    What additional benefits or services are offered to you as a customer of the bank, such as no fee traveler’s checks, money orders or foreign currency conversion services.
10.  How quickly deposits are credited to your account and what cut-offs and exclusions apply. For example, it could take an extra day for your funds to appear in your account if you make your deposit after 2 p.m. on a weekday. If a deposit is made on a weekend or holiday, it could take several extra days for the funds to show up in your account. Especially if you’re living paycheck to paycheck, knowing how quickly you’ll have access to funds you deposit is essential.
11.  Your financial responsibilities and obligations if your ATM/debit card or checking account is compromised and you become a victim of fraud or identity theft.
12.  What services are available to you through the bank’s Web site for maintaining your account, tracking balances, transferring funds, paying bills online, reordering checks, reviewing monthly statements, etc.