Secrets from a Bank Teller: 10 Insider Tips Banks Keep Quiet About Wealth Building
Banks are something every adult has to deal with, but it can often feel like we’re not handling them correctly. Rachael P., a bank teller with over a decade of experience, has seen it all when it comes to people and their money.
Through her years of depositing checks and helping people secure better interest rates, Rachael has learned a lot about what banks do and don’t want the average consumer to know. She shared some insider secrets with GOBankingRates to help you bank smarter.
Here are some things banks don’t want you to know about getting rich:
**Read Over Everything**
Always read the fine print. 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, so you should know what’s happening with it.
**Closing Accounts Isn’t Always Easy**
People think closing a bank account is as simple as just withdrawing the money and walking away. But some banks require you to come in person, fill out forms, or even pay a closing fee. 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. 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**
Many people don’t realize that credit unions often have better rates on loans and mortgages. They’re nonprofits, so they can pass on the savings to members. 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. You can get hit with a $35 fee every time a transaction goes through when you don’t have enough money. You can opt out of it entirely or 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. 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, the company might put a hold on your account for more than you actually spent. 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 be aware of that and monitor your account regularly to avoid 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. 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. 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.