How to save on silent budget killers

Fees, fees, go away please. 

Spotting and slashing unnecessary fees could put cash back into your pocket. Maybe a lot of cash. Use a free budgeting app and our tips for keeping more of your money—and keep your eyes peeled for sneaky fees, so that you can make a plan to get rid of them.

1. Eliminate the monthly maintenance fee

Potential savings: $8-$12 per month

You don’t have to pay for a regular checking or savings account.

If you’re paying a monthly maintenance fee for your checking or savings account, ask yourself why, and whether you could get the same service for free. Plenty of banks and credit unions offer accounts that don’t cost a dime (even without jumping through any hoops).

It’s common for old-school banks to require direct deposits or a minimum balance before they’ll cut you any slack on monthly maintenance fees. The problem with that setup is that you could get hit with additional costs right at the time that you can least afford them. 

What if you get laid off and your direct deposits end? What if you have to rely on the money in your account and you need to dip below that minimum balance? Those are the times when you really don’t want to have to fork over extra cash just for the privilege of being a customer.

Head maintenance fees off at the pass by opening checking and savings accounts at a bank that offers them for free. 

Online banks are well known for charging fewer fees than brick-and-mortar banks. If you need regular in-person branch access because you often deposit cash, check with your local credit unions. Free accounts are out there.

Changing banks typically involves these steps:

• Enter your personal information on the new bank’s website

• Electronically transfer money from your old account to your new one

• Submit a written request to your old bank to close your account and mail you a check for the balance

That’s it. 

If you pay bills from your bank account, you may need to update your auto payment information.

2. Get free cash withdrawals

Potential savings: $10-$16 per month

You don’t have to pay to get your money.

This budget-killer isn’t so silent. If you take a cash withdrawal from an out-of-network ATM, you have to explicitly agree to the fee every time.

But you probably have access to a vast free ATM network.

For instance, if you have an account with a small, local credit union, chances are good that they share an ATM network with other credit unions across the country. One of those networks, the Co-op network, lets you withdraw money for free at 30,000 ATMs nationwide. 

And if you’re with a big bank? Check their website. You may have access to fee-free withdrawals at ATMs other than the ones emblazoned with your bank’s logo. For example, US Bank and PNC are on the AllPoint ATM network, which means you can pull money out fee-free at most 7-11 store ATMs.

On the off chance that there really isn’t a fee-free ATM near you when you need it, consider popping into a grocery store. Many allow you to get cash back when you make a purchase with your debit card, no fee.

3. Don’t pay for points

Potential savings: $10-$100 per year 

Credit card fees and interest almost always outweigh earned points. Especially if you carry credit card debt.

Some bills give you the option to pay with a credit card, but charge a convenience fee for doing so. You might be tempted to use your travel or rewards credit card so you can rack up more points. Think carefully before you click—and do the math.

The convenience fee could be more than the value of the points you receive. If the bill you’re paying charges a 2.5% fee, and your credit card gives you one point per dollar spent, you’re losing money. 

Another big factor is the risk of debt. If you put a bill on a credit card and then don’t pay off your credit card account at the end of the month, you’ll probably pay interest on that transaction. Interest increases the ultimate cost of that expense and slows down your progress toward other financial goals.

4. Cycle—don’t stack—your subscriptions

Potential savings: $15-$30 per month

Commit to maximizing the value of each subscription that you buy.

Avoid paying for multiple subscriptions at the same time if you could use them sequentially instead. For instance, if you’re paying for two or three streaming services, consider dropping down to one. Watch everything on your watchlist, and then cancel that service in favor of another. 

You could do something similar with newspapers and magazines. Bonus points if you get an introductory offer every time you switch.

5. Re-shop your current expenses

Potential savings: $10-$30 per month

Automatic price increases are a valid reason to break up with your provider.

Inertia—the tendency to do nothing—is something companies count on. They’ll raise your rate for the same services as time goes by, or continue to charge you for things you no longer need. It feels like a lot of effort to regularly haggle prices, so we do nothing and pay more. 

But often, the only thing you have to do to bring the price down is ask.

Here are some bills you could shop around. 

Cable/phone/internet service 

• When your price goes up, call and ask for the current new customer special. 

• Ask for a discount for setting up auto-pay or paperless billing.

• Research competitors’ specials. Your provider might rather cut you a deal than lose you as a customer.

• Drop your cell phone insurance once it no longer pencils out. If your phone value has dropped to $300, there’s a $175 deductible to replace it, and you’re paying $15.95 a month to cover it, you’re in “not worth it” territory. 

Car insurance

Property insurance isn’t set-and-forget. Here are a few examples of factors that could make you or a family member eligible for a lower rate on car insurance:

• Getting older

• A clean driving record

• Adding another vehicle

• Updating the value of your vehicle as it ages

• Good grades

• Bundling different kinds of policies with the same carrier

It’s a great idea to review your insurance coverage at least once a year. Take the time to get a quote from another provider. It’ll either show you a possible better deal elsewhere, or give you peace of mind that the price you’re paying is what it should be. 

Read more>> How to budget like a boss

Start by setting aside a day to work on price adjustments once a year. Since some of these suggestions involve getting quotes from new providers, you may not be able to lock in your new, lower prices on the same day you start working on it. But if you’re willing to advocate for yourself, the payoff for your efforts could be significant bucks back in your bank account.