banking

7 financial habits that increase bank fees

Holding too many bank accounts
Holding too many bank accounts © jason cox/Shutterstock.com

It may seem easy to keep funds separate by having them in different accounts. "Customers might have accounts for purposes such as household, college, child care, taxes, vacation or medical," McCoy says.

However, juggling too many accounts can get expensive. If you have several accounts and carry a low balance in each of them, you could face a monthly fee for every account, says Black.

To avoid extra fees, consider consolidating accounts that you may have for household, college and child care expenses in one account to meet the minimum balance requirement. Then, use a simple spreadsheet to keep track of the money in your other accounts.

Also look into combining similar accounts. For instance, if you have a traditional individual retirement account at your bank and an IRA with an investment firm, you may be paying an annual fee for each account, Black says. By consolidating the IRAs, you'll be able to reduce fees.

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