Independent Thoughts

When you open a bank account, you usually receive a debit card, which allows you to access cash at ATMs and make purchases at stores. Watch out for pesky fees and its terms and conditions before blindly sliding into the cashiers card swipe machine, you may be paying much more indirectly.

• If you use your debit card in a cash machine owned by another bank, you’ll pay a fee of as much as $3, and your bank will charge a fee, too. Paying $6 to withdraw $40 isn’t smart, and you might not even realize it’s happening.
• Many banks also charge a fee when you make purchases with your debit card. When the cashier asks, “Debit or credit?” after you present you card, pick the credit option and avoid the fee.
• If you use your debit card when making hotel reservations or buying gas, merchants may put a hold on your account that’s more than enough to pay your final bill.