Rushing to open an account
"Customers often rush in to open an account," says Christy McCoy, senior vice president and chief financial officer for Lone Star Capital Bank, a community bank based in San Antonio.
Maybe you opened a money market account because it offered a high introductory interest rate. However, if you need to take funds frequently from your account, you could be charged excess withdrawal fees.
Banks often charge what is known as an "excess withdrawal fee" for withdrawing money too often from a savings account or money market account. For instance, maybe your bank allows you to withdraw from your money market account six times each month. If you take out money from the account more frequently, you can expect to pay for the extra withdrawals. You might be charged $15 for the seventh time you withdraw during a month.
Before opening an account, review its features to make sure it truly fits your needs. If you want to open a checking account that earns interest, check that you are able to meet the requirements, such as maintaining a minimum balance, to avoid charges. For a savings account, ask how many times you can make a withdrawal during the month without having to pay a fee.