Yahoo Finance I’m a Bank Teller: 10 Things Banks Don’t Want You To Know About Getting Rich
Banks are one of the things every adult has to deal with – but sometimes it’s hard not to feel like we’re not doing them right. Rachael P. has been a bank teller for over a decade and has seen it all relating to people and their money.
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During her time depositing checks and helping people secure better interest rates, she’s learned a thing or two about what banks do — and don’t! — want the average consumer to know. Rachael sat down with GOBankingRates to tell us the insider secrets to help you bank smarter.
Here are some things banks don’t want you to know about getting rich.
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Read Over Everything
“I can’t stress this enough – always, always read the fine print,” Rachael said. “With any account or loan, the terms and conditions are a legal document. If you sign it, you’re agreeing to it. If something doesn’t make sense, ask questions until it does. It’s your money, you should know what’s happening with it.”
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Closing Accounts Isn’t Always Easy
“People think closing a bank account is as simple as just withdrawing the money and walking away,” Rachael shared. “But some banks require you to come in person, fill out forms, or even pay a closing fee. And if you have any automatic payments or deposits set up, you need to change those first or you could get hit with fees.”
Free Checking Isn’t Really Free
“Be careful with ‘free’ checking accounts,” Rachael said. “They often have hidden fees or high minimum balances. Read the fine print so you know what you’re getting into.”
Credit Unions Save You Money on Loans
“A lot of people don’t realize that credit unions often have better rates on loans and mortgages,” Rachael said. “They’re nonprofits, so they can pass on the savings to members. Don’t tell my boss I told you, but it’s definitely worth checking them out before you commit to a bank loan.”
You Have No Overdraft Protection
“Banks make it sound like overdraft protection is doing you a favor, but it can be really expensive,” Rachael shared. “You can get hit with a $35 fee every time a transaction goes through when you don’t have enough money. I always tell people that they can opt out of it entirely or, if not, set up alerts so you know when your balance is low.”
Savings Rates Shift Overnight
“The interest rate on your savings account can change literally overnight,” Rachael explained. “It all depends on something called the federal funds rate. If you really want your money to grow, look for high-yield savings accounts, which are usually online.”
Debit Card Holds Tie Up Your Money
“If you use your debit card at a gas station, hotel, or car rental, whatever – the company might put a hold on your account for more than you actually spent,” Rachael shared. “This is to protect them in case you spend more, but it means that money is tied up and you can’t use it, sometimes for a few days. So, just beware of that and monitor your account regularly so you don’t get hit with weird fees.”
Banks Might Share Your Info
“When you open an account, buried in all that paperwork is often a clause saying the bank can share your personal info with third parties for marketing,” said Rachael. “You can usually opt-out, but you have to know to look for it. Otherwise, you might start getting a lot of junk mail or telemarketing calls.”
Paying Off Loans Early Isn’t Always Smart
“You’d think paying off a loan early would be a good thing, but sometimes it comes with a fee,” Rachael shared. “Plus, it shortens your payment history, which is actually important for your credit score. It’s not always the smart move people think it is.”
Coins Add Up
“This isn’t exactly scandalous, but banks legit love it when you bring in coins because it means they don’t have to order as much change,” Rachael said. She added that some banks will even count your coins for free if you have an account with them. “It’s a small thing, but if you have a big jar of change, it can really add up.”
Rachael’s seen firsthand how a little insider knowledge can make a big difference in people’s financial lives. When you’re ready to take control of your banking life, these tips and tricks can pay off in dividends.
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This article originally appeared on GOBankingRates.com: I’m a Bank Teller: 10 Things Banks Don’t Want You To Know About Getting Rich
