AVOID OVER-THE-COUNTER TRANSACTIONS

Most banks charge extra for over-the-counter transactions. For example, withdrawing cash outside a bank may cost 60 cents, while making the same transaction inside a branch can cost $2. And that's not all. Transferring money will cost you at least $1 over the counter, but at most 50 cents online, while a new copy of your statement can set you back $7, as opposed to viewing it free online.

OVERSPENDING ANONYMOUS

Always overdrawn? If you regularly slip into the red, you'll know that dishonour fees can be expensive - some banks charge up to $50 each time, as well as interest rates of up to 15 per cent for the period the account is overdrawn. To avoid this, consider opting for an account that offers a buffer zone against overdrawn fees. For example, BankWest's Safety Net Facility honours transactions that are overdrawn up to $100.

BE LOYAL

Banks can charge up to $2.50 for using another institution's ATMs, so always look for your bank's machine. Alternatively, consider an account with the Commonwealth Bank, which has around 3200 ATMs nationwide. Or play it safe and choose an account that doesn't charge ATM transactions, provided you deposit a minimum amount each month, like BankWest's Zero Transaction Account.

BALANCE BLUES

It may be only one visit to the ATM, but checking and printing your account balance when you withdraw cash at another bank's ATM actually counts as two transactions. That means you'll be charged twice as much, so try to wait to check your balance online or over the phone.

CREDIT-CARD CATCH

Steer clear of cash withdrawals on your credit card. The interest on the amount you withdraw can be four to five per cent more than normal (it's nine per cent higher with the GE Money Go MasterCard). Plus, unlike purchase fees on your credit card, you'll be charged interest from the moment you withdraw the cash, rather than when your interest-free days run out.

EFTPOS ADDICT?

Use your EFTPOS card to pay for everything? Stop. Most banks offer 10 free transactions a month, and then can charge up to 50 cents for each transaction after that. For a set fee, some banks offer unlimited transactions, like ANZ's Access Advantage card, which charges $5 a month. Also, be smart and withdraw money at the checkout. This way, if your bank charges for EFTPOS, you can get two transactions for the price of one.

Photo: Anthony Adamson.

*Business Spectator, Who's The Unfairest Of Them All, August 1, 2008. **According to Financial Research Firm CANNEX

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