How competitive is your bank? Banks have a variety of different charges for different services. When comparing costs you must also take other factors into consideration.
* All banks are open to negotiation, particularly if you use more than one facility offered by a bank for example, a mortgage bond loan. The use of more than one facility can be used to negotiate a reduction in all costs, including a reduction in your mortgage interest rate.
* Do not be "over-banked". That is do not open an account merely because the fees are lower than another bank. If you need only a savings account keep it rather than opening a higher-fee cheque account.
* Remember, accounts that offer you special services like guaranteed cheques normally cost more. If you don't need the facilities don't be misled into thinking that people will be impressed by a fancy name for a bank account. All you are doing is contributing to the bank's profit.
* When you open an account ask for a list of all charges. Ask for the options on reduced banking costs. Work out what is best for you. Reevaluate these options every few years as your circumstances change.
* Compare interest rates paid by banks on their various types of accounts.
* Compare overdraft rates. Establish whether having an overdraft increases any other fees; and
* Remember a bank will punish you quite harshly with high fees if you do not run your account properly. This includes punitive interest rate charges on an unauthorised overdraft and high fees for transactions rejected because of insufficient funds.
* If you are running into trouble speak to your bank manager.