Shop for a low or no-fee bank.  Banks make a good profits on fees.  You may be able to save $150 a year or more if you shop around for a low or no-fee bank.  Some banks and credit unions offer free checking to people of any age. Some have totally free checking. Others provide free checking when you use direct deposit of a payroll or Social Security check or require you to maintain a minimum account balance. Still, there can be fees with a free checking account such as for bounced checks, inquiring about your balance, stop payments, check printing, and lack of use. There may also be a fee for doing your banking online or for using a debit card for store purchases.  Your job is to find a bank with a low minimum balance requirement and/or with interest income on the balance.  Then look at the other fees and see which ones you can avoid with good money management.  There should be no reason at all for bouncing checks or pay any of these fees.

Choose the right bank

Here are some additional tips for keeping your cost of banking low:

• Carefully identify and document your needs before shopping for an account.
• Use your own bank’s ATM to avoid paying extra fees.
• Make one larger withdrawal instead of several smaller ones.
• It may be less expensive to do some transactions at the bank machine instead of at the counter in a branch.
• It may be less expensive to use your debit card instead of writing checks.
• Set up pre-authorized payments to pay monthly bills.  Some banks offer this as a free service.
• Use credit cards instead of writing checks to reduce transaction charges, provided card balances are paid in full by the due date.
• Consider a monthly flat-fee plan to reduce the cost of transactions.
• Use telephone, PC or Internet banking to save time and transportation costs and often service fees.
• Consider consolidating your accounts if you have more than one.

There is a lot of competition for your banking business.  Over the years we have changed banks many times and for a while we had accounts at several banks when it was advantageous to do so.  Keep your eyes open for promotions and deals.  Don’t be afraid to take an advertising flier into your bank and ask them to match the competition.

Choosing the right bank does take a bit of work but it can save you money.  Be alert to the fact that banks often change their terms and conditions so be ready to move to a better deal if necessary.  If you maintain good money habits and build your savings, you will build your leverage with the bankers.  They really like people with money.

Here are 35 more great ways to save real money.