The bank is one place where complacency can cost you. Banks actively look for new fees to charge you. So, be aware of what your bank is charging you. Is your checking really free? Or is it free only if you behave yourself, don't make any mistakes, and use less than ten checks per month? Are they charging you for online banking? Here are ten strategies for minimizing the costs of banking:

1	Shop around! Find the best account that fits your needs for the least amount of money. Look for free checking accounts. Realize however, that many banks claim to have free checking, but then add fees in the fine print. Some banks offer free checking, but not free checks. Others offer both. Investigate the costs of banking online compared to a free checking account. Often banks will offer either or.
2.	Look at your total financial picture when choosing a bank. What do you need? Are you just interested in a checking account? Are you looking for the best rates on short and long term CD's? Do you want a bank that also offers investment securities? Compare account costs verses savings rates, especially on things such as 30 day CD's, savings interest rates, 6 month CD's. etc. Can you afford to keep a minimum balance in a free checking account if it isn't earning you money?
3.	Control your debit cards. Debit cards have made it easier than ever before to directly access your checking account. However, they also present a grave danger in the form of lost receipts and forgotten transactions. Unless you record your debit card transactions with the same diligence as your checks, you run the risk of over-extending yourself. If you are personally unable to keep your card in your wallet, then leave it at home! In fact, try this for one month: Both you and your spouse put your debit cards in an envelope tucked away in your file cabinet. Agree with each other that neither will touch the cards for one month unless both agree on the use. Then, when your next statement comes in compare it with last month's statement and see how much money you saved!
4.	Get the best rate! Does the interest rate on your credit card reflect your good credit? Time and time again I find that people with outstanding credit scores, anything 700 and above, are still paying 19 - 24% interest on their credit cards! That can chew up a lot of money! Call the card's issuing bank and tell them you will close the account if they don't give you a much better rate. If they don't drop your rate, switch to a one that has the rate you want.
5.	Earn money on your credit purchases. If you have the discipline to use your credit card as a financial tool, and not a magic wishing well, you can actually earn money from your card. One Thanksgiving my husband, my son and I flew first class back to Indiana for a family reunion. The airline tickets didn't cost me a dime. Why? My credit card pays me air miles for every dollar I spend. You'd better believe that I put anything I can on that card. BUT, I pay that card off every month! You must have the discipline to control your credit spending, but it you do, it's a great tool for earning little extras.
6.	Pay off your balance monthly. Use a card that waives interest on any balance paid within 30 days, and keep it paid off. This will force you to keep your credit transactions to the bare minimum, and it will save you hundreds of dollars in interest fees every year.
7.	Get a line of credit instead of credit cards. If you can qualify for a line of credit with your bank or credit union, it will usually offer you a much better interest rate than credit cards. And, because you must actually transfer an amount from your line of credit to your checking account to spend the money, it's psychologically more difficult to spend the money frivolously. Make it a policy to pay down the line of credit above and beyond the regular monthly payment.
8.	Do NOT bounce checks. I once worked with a person who turned a two dollar check into two hundred dollars worth of returned check fees, collection fees and interest. Keep your checking account accurate by entering every check as you write it, and using a calculator to keep your figures right. As an alternative to the old checkbook, there are very good home accounting programs available to track your checking, savings, investments and loans from your home computer. What ever method you use, use it regularly.
9.	Any bills paid by automatic withdrawal? Get overdraft protection. Automatic withdrawals are very convenient, maybe a little too convenient. It's easy to forget about them, and forgetting about them may lead to costly overdrafts. Most banks charge $20 - $40 for each incident, so make sure your bank offers overdraft protection. Most banks do this by attaching a credit card to the account. Make sure you keep this card paid off each month.
10.	Know the free services your bank offers. Many times your bank will offer little services for free, such as free notary services, free cashiers checks, money orders, or traveler's checks. Find out what other services they offer for free and take advantage of them. Free is good.

Doris Fitzgerald is a loan officer for Financial Advantage in Everett, WA. She specializes in helping renters become owners. Her expertise is in finding zero down loans for just about anybody. She may be reached by calling 425-357-9643. You may purchase a copy of her book, How To Keep More Of What You Make! from our online bookstore.