Bank fees can be frustrating and mysterious. The good news is you can reduce them. Canadians are overpaying by more than $7.7 billion a year in bank fees, according to a report from North Economics. While some fees, like using an ATM outside of your bank’s network, are more obvious, others can be hidden. For example, many banks charge foreign transaction fees when you use your card outside of Canada. A simple fix? Get a prepaid card from companies like Wealthsimple and Koho. These cards don’t have foreign transaction fees, making them great for travel. Another fee to watch out for is the non-sufficient funds fee, which can hit you with a charge of $45 to $50 per transaction if you overdraw your account. Setting up overdraft protection can help prevent this by ensuring your transactions go through, even if you don’t have enough funds (within your bank’s limit). Lastly, if you’re paying a monthly account fee, ask your bank why. They might waive the fee if you’re in good standing or meet certain conditions, like maintaining a minimum balance.
