Is it possible to know when your bank is ripping you off? Yes. But you should be diligent and study some telltale signs that your bank, indeed, is getting more from you than you are from them.
In this article, we’ll list down some signs that your bank may be ripping you off. Check them out, and secure your money now.
1. Misleading and Hidden Bank Fees
Banks are also businesses, and businesses want to make money. So customers like you need to pay certain bank fees.
One way banks can rip you off is by misleading you about vague or ambiguous explanations of bank fees. Hidden fees also exist, and you may not know them until you have to pay them.
To prevent this from happening, ask questions that will let you fully understand what you’re taking on, from bank fees, maintaining balance, and others. If you are not comfortable or can’t completely make sense of their fee structure, you can pull out.
2. Large Minimum Balance
If you want to use a free checking account with interests, you’ll likely pick one with a minimum maintaining balance to avail it. According to a study, banks are increasing their required maintaining balance.
When you don’t meet the minimum balance, you will be charged a fee. And that fee has also been on the rise.
To check which banks have more reasonable minimum balance levels and fees, visit CompareBanks.co.uk.
3. Large Fees to Close an Account
When you’re no longer satisfied with the bank’s services, it’s best to close your account. However, closing your account may also mean the bank will charge you a hefty fee. This usually happens to newer accounts (six months or fewer).
So, before you open an account with a bank, ask them about their terms for closing an account. Again, if you don’t fully understand the way their terms work, think twice.
4. Payday Loans
Many people are already averse to the idea of payday loans, so they no longer take it. However, many banks are still offering this product, only disguised as another cash advance product.
Payday lending is illegal in cities around the world. However, banks can circumvent the law by using online cash advance services.
Before you take any loan or cash advance that your bank offers, make sure that you know how much you are paying them back. Check how legal those loans are, too.
5. Deliberate Paperwork Mismanagement
Banks might also be ripping you off by intentionally mismanaging paperwork. They may allow too much bureaucracy when reviewing applications.
Other times, they take a long time to pay property taxes or delay the cancellation of private mortgage insurance. They may also delay communications when it comes to loan modifications.
If you suspect they are doing this, check your bank statements regularly and monitor all the processes involved in any of your transactions.
Overall, it always pays to be diligent and curious about how things work in banking. Individually, the signs we’ve discussed may not be proof your bank is ripping you off. However, if you notice your bank doing many or all of them, it’s time to get suspicious.