When it comes to banking, we all have our likes & dislikes. Today, I’m going to share my take on ten banking services that I’ve decided to ditch because they just didn’t work out for me.
I’ll tell you exactly why I gave them the boot. Hopefully, you’ll be able to work out what’s best for your wallet and sanity in this crazy world of finance.
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Overdraft Protection
Overdraft protection sounded good on paper but it wasn’t my friend in practice. Every time my account slipped into the red, the bank charged me fees, meaning that this safety cushion cost me an arm and a leg.
Wire Transfers
I used to send money overseas by wire transfers, until I noticed the fees and poor exchange rates. Such a “convenience” turned out to be an expensive way to move money.
Now, I prefer using digital transfer services outside of the big banks, which gives me more transparent fees and more competitive rates. It’s quicker & cheaper, not to mention just as secure.
Traditional Savings Accounts
Remember the days when savings accounts earned you a bit of interest? Sadly, those days are long gone.
The interest rates these days are so low they barely make a difference, so I’ve since moved my savings into higher-yield accounts & other investment options. At least then, my money can actually grow.
Safe Deposit Boxes
I rented a safe deposit box to store important stuff but then I realized I wasn’t using it enough to justify the cost. After all, there’s no point in having one for just a few expensive items.
Instead, I bought a good safe for my home. It’s a one-time purchase that saves me the trip to the bank and the annual fees of a safe deposit box.
Certified Checks
In the modern era, getting a certified check is a lot more trouble than it’s worth, especially when you take into account all the fees.
In most cases, I’ve found that electronic payments or even old-fashioned cash does the job just as well. You don’t have to deal with any extra hassles or costs; just send the money over.
Bank-Issued Credit Cards
While the benefits on my bank’s credit cards were okay, I actually discovered some better deals elsewhere.
Other companies had lower interest rates & better rewards, like Aeroplan points or better cashback. It just doesn’t make sense to settle for less when you can get more benefits from switching to a different card provider. Loyalty isn’t always worth it.
Monthly Maintenance Fees
Why should anyone pay monthly fees just to keep a checking account open? It’s pretty ridiculous, in all honesty.
As such, I switched to a bank that doesn’t charge these fees. Most digital banks and smaller banks don’t. There’s really no good reason to throw money away every month just to use your own money, so why bother doing it?
Currency Exchange
Exchanging money at the bank before a trip abroad is the best option, right? Well, no.
After seeing how much I was losing due to poor exchange rates, I started comparing options. It turns out that local currency exchange places usually give me far better rates. Planning this ahead of my trips saves me quite a bit.
Paper Statements
Getting paper statements in the mail often leads to them just piling up at home, which creates more clutter than it’s worth. What’s more, the bank charges me for them.
Going digital has made it easier to keep track of my finances. Better yet, it’s far more secure and cuts down on paper waste because, really, who needs more paperwork, anyway?