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Last week, we looked at saving on automobile insurance premiums as one way to "find"
money to invest in savings or, specifically, in retirement accounts. Do you know that an annual
investment of $2,000 in an IRA for the past 10 years would now be worth more than $35,000 (at
a modest return of 10 percent)? Many investors were able to earn much higher rates.
Here are some opportunities to save money on banking charges.
1. Consider overdraft protection on your checking account. I hate to admit it, but recently I
entered my deposit twice in my checkbook, which meant that four checks bounced. It cost me
$20 for each check plus the embarrassment of having checks returned, including one to my Dad.
I have since arranged for overdraft protection at a cost of $15 per year. The $80 would have
made a nice contribution to my IRA rather than the bank.
2. Save on checks. Find a checking account with free checks or buy cheaper plain vanilla
checks. If you want fancier ones, order from direct check printers. Rather than paying $15 to $20,
you pay approximately $5 per box of 200 checks. Three sources of direct check ordering are:
Current Checks at (800) 204-2244, Checks In The Mail at (800) 733-4443, and The Check
Gallery at (800) 354-3540.
3. Limit where you use your ATM card. Find out if your bank charges for using it at their
own ATM machines -- many don't. Often, you pay a fee if you use another bank's ATM, and
your own bank will charge, too. Avoid these charges.
4. If you are a senior (the age varies), ask about special accounts that give you benefits such
as a reduced charge for safe deposit boxes, free checks, low or no minimum balances for
checking with interest, reduced rates on loans, etc.
5. Don't forget to check out credit unions. Compare interest rates on checking with interest
accounts and certificates of deposit, as well as auto, mortgage and personal loans.
6. Look into an asset management account at an investment firm that will give you free
checks and access to money market accounts with higher interest rates. The most economical
accounts do not charge an annual fee.
Plan to save all of the dollars that you free up from needless expenses.
For more information, contact your local
Colorado State University Extension office.
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