Here's How Inflation Is Pushing People Toward Fee-Free Banking 

Inflation refers to the gradual increase of how much we pay for goods and services over time. But as simple as that definition sounds, inflation can create complex financial problems for everyday people. As prices climb, finding ways to make your dollars stretch further can suddenly feel like rocket science. Essentially, inflation means your money loses value over time.

One way to manage the effect of inflation is to cut the costs that unnecessarily strain your finances. A prime example: banking fees. That’s where no-fee checking accounts may offer a simple solution for making more of your money.

Many banks have monthly maintenance fees — imagine $5 to $10 a month — that may not feel noticeable. But if we zoom out with an annual perspective, those maintenance fees may total up to $100 a year or more. Other banks may charge the same amount of fees or more if your balance dips below a required minimum balance or when you move money from one account to another.

For some, that means even small banking fees could add up to the difference between paying rent or credit card bills on time and seeing your credit score or living situation suffer in an inflating economy.

You may not be in a position where bank fees make or break your budget, but why pay a single cent when you don’t have to? Sure, fee-free banking won’t cure inflation, but it can certainly help you spend more on what matters to you.

Here are some of the fee-free banking benefits that may help keep more money in your pocket:

• Free, safe storage for your money.

When gas prices hike up, the last thing you need is a fee. If your current bank charges you just to keep your account open, you don’t have to put up with that. Many banks already know you’re stretched thin, and they help by sparing you maintenance fees.

• More flexibility for lower balances.

Many people might feel like they’ve seen the cost of food double or triple before their eyes recently. But when your budget is tight, you don’t have to choose between a full grocery cart and paying a fee for falling below your bank’s minimum balance requirement. No-fee accounts exist, and you can bank with an institution that offers them.

• Free access to your cash.

During inflationary periods, your cash can lose a bit of its value every day, so why spend a reported $250 a year on weekly ATM withdrawals? There are feeless banks that cover all your ATM fees no matter what or where. Others provide a wide network of ATMs that you can use at no charge.

• No more penalties for doing your best.

Inflation can make it hard enough to pay bills in full and on time, and overdraft fees that total as much as $35 per overdrawn transaction aren’t exactly helping. With fees of that size, your balance may not even have enough money to make a minimum payment. Fortunately, there are banks out there that offer ways to avoid overdraft fees.

As you shop for no-fee checking accounts and more affordable banking, it’s important to understand that not every checking account that claims to be free is truly free.

As you compare options, you can ask a bank representative these questions:

• Are there certain requirements I have to meet for all fees to be waived, like a minimum balance?

• Outside of welcome periods or promotions, are there overdraft fees?

• Can I easily withdraw cash near me without worrying about withdrawal fees?

• Are there any hidden fees for transfers, inactivity, or anything else?

Moving to a fee-free checking account is a great first step toward managing inflation, but developing a few habits can really kick your efforts up a notch:

• Setting up direct deposit

Having your paycheck automatically deposited into your checking account can simplify your routine and help automate your finances.

• Paying yourself first with automation

If you’re in the process of building an emergency fund or saving up for a larger purchase, you can set up automatic transfers from your checking account to an interest-earning savings account each payday. That way, you don’t have to remember to move the money yourself. You can also set up autopay for housing, utilities, credit cards, and other recurring payments to help you maintain a strong payment history.

• Tracking your subscriptions.

You can scan your transaction history on your bank’s mobile app to pick out subscriptions you forgot you had—or worse, never even knew you had. That money can be put to much better use.

• Taking advantage of account alerts and notifications

A quick text or email when your balance runs low can help you respond quicker by moving funds around and dodging an overdraft fee before it happens. Signing up for notifications may also help you catch fraudulent charges faster.

You can't control inflation, but you can control how much you pay to access your own money. From no-fee checking accounts to the thrill of never having to pay an overdraft fee again, you don’t have to waste another dime on accessing your funds. You can start that journey today as soon as you open an account with a fee-free bank.

Notice: Information provided in this article is for information purposes only and does not necessarily reflect the views of the publisher or its employees. Please be sure to consult your financial advisor about your financial circumstances and options. This site may receive compensation from advertisers for links to third-party websites.