Money: 5 Tips To Reduce Your Bank Fees

With inflation and price increases in all sectors, no source of savings should be overlooked. Did you know that you can save several tens of euros per year by changing your bank or banking services? Here are 5 tips to reduce your bank fees easily.

1- Choose an online bank

In France, banking fees are €219 on average according to estimates by UFC-Que Choisir. But it is possible to save nearly €200 per year by opting for an online bank.

This is the first of 5 tips to know to reduce your bank fees and it's easy to put into practice. Changing banks now benefits from a simplified procedure where the establishment you join takes care of the formalities for free.

Boursorama Banque, which is the leading online bank in France, is also the cheapest with an average cost of €7.79 per year. Such a difference in rates is explained by the fact that online banks do not charge any account maintenance fees and allow you to perform most of your banking operations for free.

2- Take advantage of a 0 € bank card

Another advantage that may encourage you to choose an online bank is the possibility to enjoy a free bank card. At Fortuneo, Boursorama Banque or Hello Bank, your bank card is free on the sole condition that you pay for a few purchases per month with this payment method.

You can even benefit from a premium bank card such as the Visa Premier or Gold MasterCard under the condition of income or savings.

This second tip allows you to reduce your bank fees and save between €120 and €140 per year. This is the average cost of a premium bank card in a traditional bank.

3- Don't pay for unnecessary services

The third of the 5 tips for reducing your bank fees is to only pay for the services you use.

If you don't feel like switching banks, you can start by consulting your bank's latest rate booklet and making a list of the services you actually use.

At traditional banks, customers usually have the choice of either buying a package (a set of services for a flat monthly fee) or paying for the services they are interested in individually.

Be sure to check which services are included in your package and what the price is for each service you need. Comparing the cost of the two packages can save you several tens of euros per year.

4- Avoid exceeding your authorized overdraft at all costs

If you're struggling to make ends meet, it can be helpful to subscribe to an authorized overdraft.

Being overdrawn a few days out of the month doesn't cost too much as long as your overdraft stays within the allowed limits. On the other hand, you should avoid going over that limit at all costs.

To reduce your bank fees, pay attention to intervention commissions, i.e. the fees charged for each operation beyond the authorized overdraft. These fees represent several tens of euros, hence the interest in making an appointment with your bank advisor before getting to that point.

5- Don't take out insurance on your means of payment

The last of the 5 tips to reduce your bank fees is a bit riskier as it involves cutting out on payment method insurance.

This insurance, which costs about €20 per year, protects you in case of fraudulent use of your checkbook or bank card and can also cover the theft of your keys and papers.

If you find this last trick perilous, know that French law already protects you in the most common situations. Did you know, for example, that your bank must reimburse you in full for fraudulent debits with your bank card when the code was not used to pay? And that the maximum amount that remains payable by you if the code was used is €50?

If you decide not to take out payment card insurance, you simply have to be even more careful with your bank card when you use it in shops and on the Internet to avoid phishing attempts by fraudsters.

And of course, don't hesitate to stop payment immediately in case of problems, such as the loss or theft of your card or the presence of unexplained expenses on your bank account.