Banks will provide you with information about their charges, but make sure you know the full story.

Brochures and leaflets will highlight the standard charges for operating your account. You will be advised of some of the fees levied for non-standard services before the service is provided.

Checking bank charges

Bank charges are usually taken from the bank account monthly or quarterly. A statement detailing a breakdown of all fees is sent to the customer before the fees are taken from the account.

It is useful to check this statement regularly to ensure that no other fees are being imposed. Ask the bank to explain anything that looks unusual or that you don't understand.

But it is not all down to the bank. If you do not keep to the terms and conditions of your account, the charges can be high. Banks will charge a referral fee if your account goes overdrawn without permission. This is payable if the manager has to examine your account and write to you about it.

If you accept a cheque that is returned unpaid by the debtor's bank, your bank will charge you an administration cost and you will not get the money due to you. It will then be up to you to get the debtor to pay you in another way and to reimburse the bank charges you have incurred.


Keep bank charges to a minimum

There are ways to keep your bank charges as low as possible. For example:

• negotiate for better interest rates and lower charges
• automate as many transactions as you can by using standing orders, direct debits and electronic payments
• use your bank's online services if any are available
• avoid unauthorized overdrafts
• try to reduce the amount of cash you pay into your account
• find out what other banks would charge for the same services

If you are unhappy with the service you have received from your bank, in the first instance complain to your bank.