Bank fees continue to go higher and higher, which means that avoiding them is more important than ever! With fees deducted directly from your account, it can be tough to notice that may have been charged hundreds of dollars per year just for the privilege of using your own money! Fortunately, you can cut these fees to nearly zero by taking just a few easy steps:

1) Switch to a free checking account. Some banks now charge as much as $15.00 per month in fees if your checking account fails to meet a minimum balance, which can often be quite high. With banks aggressively competing for deposits right now, there is absolutely no reason to pay these fees. Wachovia and Washington Mutual (now Chase) currently offer free checking accounts, and Bank of America is even offering a bonus of up to $100 when you open and use a new account!

2) Pay your bills online. Many banks offer free online bill payment services, which are generally reliable and quite convenient as well. With stamps costing 44 cents, you’ll pocket an extra $32 per year if you mail in six bills per month or $52 per year if you pay an average of ten monthly bills.

3) Set up overdraft protection. Overdraft fees at most banks have soared to $35 per item, becoming a major profit center at many institutions. As these fees run rampant, angry consumer have spurred Congress to consider limiting them. However, you can easily avoid these fees by setting up overdraft protection. Your bank will simply link your checking account to your credit card. Beware, though, these overdrafts will incur your credit card’s high cash advance interest rate so you still need to avoid being overdrawn.

4) Avoid using other banks’ ATM machines. You’ll often incur two fees when you use an ATM machine that is not operated by your bank — one from your bank and one from the bank or company that owns the machine. These often total $4.00 or $5.00; an outrageous amount to charge on a small withdrawal. Be especially wary of those privately owned machines that are often found in convenience stores or restaurants, as the fees they charge are generally even higher!