Everyday expenses: what invisible bank fees are taking your money

Modern financial transactions, such as money transfers, mobile top-ups or utility payments, have become commonplace. At the same time, these transactions are often accompanied by bank fees. Small amounts may seem insignificant at first glance, but in the end they can seriously affect the family budget in a month or a year.

According to the law, banks have the right to set their own tariffs. However, they are obliged to clearly inform customers about all related payments. Unfortunately, many users do not familiarize themselves with the terms of service, as a result of which they find themselves in a situation where they pay more than they planned.

The most significant costs arise during regular financial transactions. For example, transfers between cards, top-ups or payments through terminals can cost up to 2% of the amount. Cash withdrawals, especially at ATMs of other banks, can cost up to 2.5% plus a fixed fee.

In addition, banks may charge an account maintenance fee, which, in some cases, reaches 50 hryvnias per month. The cost of reissuing or issuing a new premium card varies from 50 to 200 hryvnias, and international currency conversion transactions can be even more expensive – from 1 to 3%.

Another important expense item is utility bills. If the bank does not have a direct agreement with the service provider, the client must pay a commission for each such payment.

Recently, so-called “hidden” fees have appeared. For example, a fee for account inactivity. If the card is not used for several months or a year, the bank may debit from 20 to 100 hryvnias monthly from a hryvnia account or up to 10 dollars or euros from a foreign currency account.

In some situations, such debits may continue until the account is completely depleted. Also, some banks may withhold a significant amount when closing an account, even up to 30% of the balance, if they consider the client’s transactions suspicious or in violation of the rules.

In addition, there are fees for storing large amounts in foreign currency accounts, which can reach up to 100 dollars or euros per month.

Recall that previously we published tips on how to save money by paying utilities through PrivatBank, as well as restrictions on transfers, which specify how much money can be received or sent.