Bank Fees

Bank fees look trivial — a few shekels here, a few there — but they accumulate into hundreds of shekels a year, every year, for a lifetime. The good news is that they are unusually easy to cut. This guide explains how.

Disclosure: Educational information only. Any action you take is your own responsibility.

Which fees exist

Banks charge a range of fees, including a direct channel transaction fee for online activity and a teller transaction fee, which is considerably more expensive, along with account management fees, and charges on transfers, cash withdrawals, cheque books and more. Most everyday actions are priced separately.

Discounted fee tracks

A point many people do not know: most banks offer fee tracks — a low fixed monthly payment covering a bundle of transactions, instead of paying per action. For anyone carrying out a reasonable volume of transactions, a track can save significantly.

In addition, benefits and exemptions exist for particular groups, including students, soldiers and senior citizens, and these frequently go unclaimed.

How to save on fees

1. Check your fee statement — establish what you actually pay per month before doing anything else.

2. Move to direct channels — online transactions cost less than teller transactions.

3. Ask for a fee track matched to your actual activity level.

4. Check eligibility for benefits based on age or status.

5. Compare banks, and consider switching bank if you are paying too much.

Common mistakes

1. Never checking at all — fees accumulate quietly.

2. Using a teller for transactions that could be done online.

3. Not asking for a discounted track you are entitled to.

Summary

Bank fees are a transparent expense that is very easy to reduce: check what you pay, move to direct channels, request a suitable track, and use the benefits available to you. See switching bank and the banking and credit section. We provide the knowledge — the decisions remain yours.