Banks offer a wealth of financial products and services that make it possible for everyday consumers to easily manage—even grow—their money. These include different types of loan options, lines of credit, and checking and savings accounts. Some of these can be used for free. For instance, if you’ve qualified for the Maya-powered Landers Cashback Everywhere Credit Card, your Maya credit card annual fee is waived for the first year. This means you can enjoy the generous benefits offered by this credit card, which includes 5% cashback at Landers, 2% on dining spends, and 1% on all other qualified transactions,* without spending more than you need or intend to.
It’s worth noting, however, that banks can charge fees for the use of their services and products. If the amount in your savings account falls below your bank’s required minimum balance or your account shows no activity for a month, for example, you can be charged for it. The good news is that you can avoid many of these fees by staying aware of your bank’s policies and adopting smart financial habits. Plus, by understanding the common charges that banks impose and taking proactive steps, you can minimize your expenses and make the most of your financial resources. Here’s a list of these common charges:
Annual Fees
Some credit cards charge an annual fee in exchange for rewards, perks, or premium services. While these benefits may be worthwhile for frequent travelers or high spenders, an annual fee can be an unnecessary cost if you don’t take full advantage of the card’s features.
To save on costs, apply for a card like the Landers Cashback Everywhere Credit Card that waives the annual fee for the first year. This way, you can enjoy the full benefits of credit card ownership for an entire year without the additional expense. This will give you sufficient time to evaluate if the perks that come with the card are well worth its annual fee. In addition, you can look for credit card promos that waive the annual fee if you meet spending requirements within a specific period.
ATM Fees
Choosing where to withdraw money can also help you cut costs. Banks typically charge fees for using ATMs that are not part of their network, and the ATM owner may also impose an additional fee to out-of-network users. These charges can quickly add up, especially if you frequently withdraw cash.
As much as possible, try to use your bank’s ATMs to steer clear of unnecessary fees. Alternatively, you can opt for cashback at grocery stores and retailers when making purchases so you won’t need to withdraw money to pay for your transactions. Take note that some banks reimburse ATM fees or offer fee-free withdrawals at partner networks, so check with your bank about your options.
Cash Advance Fees on Credit Cards
Taking out a cash advance using your credit card comes with high fees and immediate interest charges, making it an expensive way to access cash. So while cash advances offer convenience in cases of emergency, people typically use them as a last option. If you need emergency funds, consider alternative fund sources like personal loans or borrowing from friends and family to avoid excessive charges.
Late Payment Fees on Credit Cards
Adding a credit card to your list of financial tools can present you with plenty of practical advantages. However, you need to understand that this comes with the responsibility of being a diligent payer. If you fall behind your financial duties, your credit card issuers can charge late payment fees. In addition to these fees, late payments can also lead to increased interest rates and negatively impact your credit score.
Setting up automatic payments or reminders is one way to ensure that you never miss a due date. Even if you can’t pay the full balance, making at least the minimum payment on time can help you avoid unnecessary fees and protect your credit rating. Also, when choosing credit cards, be sure to check the associated fees. Knowing that the Maya credit card payment fee for late dues can be either PHP 1,000 or the unpaid minimum amount, for example, can prevent surprises and help you prepare your finances better.
Foreign Transaction Fees
Are you planning to use your credit card while you’re out of the country? In that case, prepare to be charged foreign transaction fees, which are usually a percentage of the total purchase amount you used while you’re abroad. To save on costs, look for a credit card or bank account that offers fee-free international transactions and choose to use it over your other cards when spending overseas.
By being aware of these common bank fees and taking simple steps to avoid them, you can keep more of your money and make smarter financial decisions. Maya is your partner in achieving your financial goals, including minimizing the cost of completing transactions. Check out our financial products and services today on the Maya app and discover products like the Landers Cashback Everywhere Credit Card that can reward you for spending your money wisely.
*Transactions that don’t qualify include: cash in, cash advance, quasi cash purchases, casinos and gambling, fuel, supermarket, pharmaceuticals, utilities, telco, and government.
