- Guest Contributor
- December 16, 2021
When you have a side hustle, you’re generally not doing it just for fun. Instead, you’re doing it because you want to make some extra cash. One of the keys to saving as much of your hustle money as possible is having the right banking solution. When you choose a banking option you can trust, and one that doesn’t charge you all kinds of unexpected fees, you can hang on to more of the money you worked so hard for. Here’s what to look for, when picking a bank.
1. What It Is & What to Look for: Monthly Maintenance/Service Fees
A lot of banks charge you money, just for “maintaining” your account. Even though they might not really be doing anything but keeping it open for you, they’re going to want money out of it every month. Usually, it’s a small amount — often $5 or $10 — but that can add up. If you spend $5 every month in account maintenance fees, your banking solution is costing you $60 per year, just for the privilege of having an account there. There’s no reason to do that, when you can find a lower-cost option.
Not all banks charge these fees. For the banks that do charge maintenance fees, there are often ways around them. The most common one is through a direct deposit, or another type of ACH transfer. If you get paid by your side hustle via PayPal, for example, and you have that money transferred to your bank account at least once every month, that may be enough to get the service fees waived. Take a look at the fees and requirements before signing up for any bank account, so you’ll know what it costs.
2. What It Is & What to Look for: Overdraft or Insufficient Fund Fee
If you overdraft your account, or you try to pay a bill and don’t have sufficient funds to do so, you might find that your bank will charge you a fee for that, too. You need a banking solution that won’t do that, or that has low fees for these problems. Naturally, it’s not good to overdraw your account. But sometimes, things happen. Maybe a bill came out that you forgot about, or you spent a little extra at the grocery store. Because of that, you didn’t have enough in your account for an autopay you had set up.
It’s hard to find a banking solution that doesn’t charge these kinds of fees. But a lot of banks offer overdraft protection. That’s set up to make sure you can still get that autopay to go through, so you won’t have late fees from the company you’re trying to pay. Whether the bank charges fees for the overdraft coverage, though, is also something to look at. Often, this kind of protection pulls money from your savings, to cover a bill in checking. While there may still be a fee, it’ll likely be lower than an actual overdraft.
3. What It Is & What to Look for: Out-of-Network ATM Fee
Some people use the ATM a lot. If you’re one of them, you want to make sure you’re not choosing a banking solution with out-of-network ATM fees. Those can really add up, and can even range into the hundreds of dollars every year. Some banks will refund those fees as a perk with certain accounts, but many won’t. Make sure you know whether your bank offers that, before you decide they’re the right banking solution for your needs.
About the Author: Michelle Dakota Beck has worked as a professional freelance writer since the 1990s. During that time she has written everything from product descriptions to full-length books. Her areas of specialization include real estate, home services, legal topics, relationships, family life, and mental health issues. You can find her on WriterAccess.
