Go bank free this summer: 5 banking alternatives

by: Petter G. Miller and Karen Lawson

Are you fed up with your bank helping itself to your hard-earned money by charging excessive fees? More and more Americans are ditching their banks for alternative financial institutions. Here are five alternatives to consider before divorcing your bank’s excessive account maintenance and overdraft fees.

Consider Credit Unions

If you’re hesitant to divorce from banking institutions completely, consider credit unions. These are banking cooperatives that are usually owned by their members. There are often membership requirements, such as working for certain employers, but some communities have credit unions that anyone can join. Fees are typically much lower than you’ll find with traditional banks and some even rebate other banks ATM fees. Car loans and mortgages often come with much lower interest rates and origination fees.

Prepaid Debit Cards

More and more Americans are turning to prepaid debit cards for their banking needs. Many cards today offer very low fees, free direct deposit, and even free online bill pay. While prepaid debit cards can be a great banking alternative, fee structures vary widely from one card to the next. Pay close attention to the fine print and look for cards that do not charge fees for using the card. Other fees you’re likely to encounter are monthly maintenance fees or fees for using bill pay services.

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