Bank fees, questions to ask to find out what you're really paying

If you're feeling a little strapped for cash these days, perhaps your bank can relate. "Yes, they are making more in fees and doing it rather aggressively," says Dr. Richard McGrath, an economist at Armstrong Atlantic State University.

The General Accounting Office, in a report last year, said that consumers paid about $36 billion dollars in fees to banks and credit unions in 2005. Some estimate that bank fees may climb to $55 billion in 2009.

McGrath reminds me that banks are in business to make a profit. "Traditionally, they don't make much off of a lot of us with our free checking accounts," he says. "most hey make their money off big deposits and things like mortgages, home equity lines and even cars loans. But a lot of those things like mortgages, have dried up."

McGrath says if banks can't make as much money in a bad economy lending money, then "they'll rely more and more on fees to make up the difference."

He says most consumers may not be as well acquainted with the fee structures of their banks as perhaps they should be. "Well, if they look at their bank statements, they know they got charged a fee for something but they often don't know it until after they look at bank statements."

If you are not certain what your bank charges, he says you have the right to receive the fees in writing.

Suggested questions for your bank:

1) How much do you charge for an overdraft fee?

2) Do you process transactions high to low, i.e. the largest check or debit may clear first even if it doesn't come in first. (critics of this process say it allows banks to bounce more checks and charge more overdraft fees. The American Bankers Association has told me in the past that this is done to help consumers, i.e. Bigger checks are often the more important item, like a car payment or mortgage.

3) What is the deposit timeline? In other words, if you deposit a check at 9 a.m., when does it show up in your account? Is there a difference if you would deposit that check at 3 p.m. Instead?

4)Does your bank charge for cashing a check drawn on another bank?

5) How much is an over-limit fee or late fee on your credit card?

6) Does your bank waive over-limit, late or overdraft fees if it happens seldom to one of your accounts?

7) Is there a clear indication of all fees charged on the bank's website?

8) If not, can you get all fees outlined in writing?

Here's some additional information on bank fees from MSNBC

Http://articles.moneycentral.msn.com/Banking/BetterBanking/BankFeesAreMoreOutrageousThanEver.aspx?page=2