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Free online bank account

Watch out for hidden costs for bank account offers

Many people do not want to pay any fees for their bank account anymore. That does not have to remain a dream as there are a lot of online bank accounts offered free of charge. Included are usually account management, wire transfers, setup of standing orders and sometimes even more services. Overall, one does neither have to leave the house nor think about opening times of any branch as online banking is available 24/7. Moreover, it usually costs much less than a regular bank account, one of the main reason why a lot of people choose online banking over regular banking.

Although advertisements promise banking free of charge, however, this is not always the case. Quite often, there are some hidden fees, especially for bank accounts supposedly free of charge. For example, account management may only be free if there is a certain amount of money going into the account every month. Some banks require a minimum amount of money left in the account every month, something that may prove to be quite difficult. If these requirements are not met, a fee will be charged. Hidden fees may also apply for transactions. There may only be a maximum of transactions every month available for free. If more transactions are needed, the account holder has to pay for every single one. Even though fees may be low, they may add up to a significant amount of money depending on the absolute number of transactions. Before applying for the account, one should check for the actual costs. As these costs vary from one bank to another, the time spent on comparing offers is well spent. Sometimes, the annual costs can be lowered significantly through transferring an account to another bank. To find all the hidden fees that may apply, one should check for the small print in offers and contracts. Comparing different offers on the Internet may help as they are laid out on a number of different sites. One should check different websites, however, as some of them may only compare certain offers. Financial institutions paying for advertisements on these websites are usually introduced more prominently than others exactly because of this sponsorship. Therefore, one should always question all fees and other costs that may apply when it comes to opening a new bank account.