In a separate blog post, I already talked about fees that we hate to pay.
Here are more fees we really should not have to deal with:
Paying to have credit rewards back
For crying out loud, it is a reward card, right? Well, some now punish you for paying late by taking away the points you earned in that billing cycle. Then you have to give up more money to get them back. Diner's Club collects a $15 reinstatement fee while American Express, $29. Always make sure you pay the minimum amount due on the due date. With online banking, you can schedule automatic payments and not have to worry about your rewards being taken away.
Paying a fee your checking account
The average bank now charges about $15 if you fail to keep minimum maintaining balances with them. So if your account balance goes say to $99.99 in an account that has a minimum of $100, you'll be charged $15 for that oversight! Close down your accounts in the big banks. There are community banks, online banks and credit unons that still offer free checking accounts or have very reasonable maintaining balances so that you don't have to worry about those fees. In some banks, they can even waive those requirements if you set up a direct deposit with your account.
Paying to close an IRA
If you are now unhappy with your broker, just wait until you decide to cut off your ties with them. Then you'll see how much unhappier you will be. Many major firms have started charging transfer fees of about $50 to $200, if you close your account and move your money to a different firm. Here's what you can do. Talk to the company you are moving your money to. Many will be willing to reimburse those charges. And in the future, do not sign an agreement without attempting to negotiate those fees. Especially if you are opening a sizeable account, the ball's in your court to begin with.
Funding your mutual fund marketing
About two-thirds of mutual funds include in their expense ratios, fees that are meant help cover the costs of attracting new investors. That will slash down your investment income. Some funds keep charging you those marketing fees even if they have closed themselves to new investors. Before signing up with a mutual fund ask about 12b-1 charges. If they collect these, move on. If they won't tell you, read the prospectus. Always strive to keep less than 1% for an actively managed fund, and below 0.3% for an index fund.
Paying to check baggage
The only airlines that still don't charge anything for checked-in baggage are JetBlue and Southwest, but that's only for your first bag. All others will collect fees on domestic flights between $15 and $45 for your first checked bag and between $25 and $35 for your second. Many collect higher fees when you check in bags at the airport rather than online.
If you have a favorite airline, aim for elite status with them. That will get you at least one free checked bag per flight. Otherwise, pack lightly enough so you avoid checking-in altogether. Use a soft-sided carry-on bag with dimensions totaling no more than 45 inches and length should be no more than 21 inches.
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