Be Your Bank's Thriftiest Customer

Your local bank's job is to turn a profit on you, but make sure it's not a killing.

Banks typically offer a few different account packages, which can seem simple but, in fact, deserve a little attention. Typically, there is a package or two that don't pay interest on checking accounts, but boast low fees and a low minimum balance. At the other end of the spectrum are accounts in which your checking account earns some interest, but have high balance minimums and high penalty fees for too many ATM withdrawals or bounced checks.

Here are the different fees banks can charge. Before you open an account, ask about each. To check up on your current account, break out your past few bank statements and see what you've been paying. If your bank or another offers a cheaper account without a higher minimum account balance -- and that's almost certainly the case -- consider trading up. Local credit unions, for instance, typically offer accounts with lower account minimums and better interest rates than bigger banks.

• ATMs: Banks can charge you steep fees for using ATMs, or automatic teller machines, more often than, say, 10 or 15 times a month -- or for using other banks' ATMs. Make sure your bank's ATM fees aren't gouging you. If you use ATMs often, pick a bank with many machines near your home and office.
• Per-check charges: Your bank might make you pay a toll for writing more than a few checks each month. If your account has one of these limits, make sure it suits your needs or get an account where you don't have to worry about it.
• Bounced checks: Everyone does this from time to time. Most banks offer "overdraft protection," but some do so at a heavy price. Make sure you know what you're paying.
• Transactions: Are you being charged for each withdrawal, transfer or deposit above a certain number? If so, make sure you know that number and don't go over it. Also, see if there's an account that suits your needs and doesn't carry this charge, so you don't have to obsess over every check or ATM visit.

Of course, there's more to banking than fees. Your monthly statement should tell you what interest your accounts are earning. You can compare your rates with other local banks at www.bankrate.com.

Here are a few tips for saving money at the bank:

• Less is more with your checking account: Because your checking account probably pays little or no interest, don't keep much more than your monthly expenses there. Put the rest of your cash in accounts that pay at least some interest, like a savings account, a money market account or a certificate of deposit.
• Buy checks direct: You can save a bundle by buying your checks directly from the folks that print them and not via your bank. Check out www.currentchecks.com or www.checksinthemail.com.
• Consider going online: Many banks will lower your fees if you do your banking online. And paying your bills online is easier anyway.
• Use direct deposit: Beyond saving you the time and aggravation of trotting down to the bank or local ATM, having your employer directly deposit your paycheck into your account can sometimes lock in lower banking fees.

10 Things You Should Do Before You Invest

• Figure out what you're worth.
• Set your goals and figure out how much they cost.
• Spend less than you make.
• Build an emergency savings fund.
• Pay off your credit card debt.
• Insure yourself against the unexpected.
• Contribute to tax-deferred retirement plans like 401(k)s and IRAs.
• Consider using software to keep track of your money and help with your taxes.
• Be your bank's thriftiest customer.
• Check out your credit report.