How No Fees Can Supercharge Your Savings

The average American pays about $14 per month in banking fees. That’s $168 a year – just for keeping an account open. Even if you don’t have to pay a monthly fee to maintain a savings account, it’s common for banks to charge additional fees if your balance drops below a certain threshold or your account is inactive for a lengthy period.

While these may seem negligible, the nickel and diming can add up. And keeping that money in your account rather than paying it out in fees could significantly add to your savings over time. At Forbright Bank, we don’t charge any fees for our Growth Savings account because we believe that your money should be yours to use when and how you wish – without worrying about fees or hidden charges chipping away at your savings.

How much does a no-fee account affect your balance?

The value of a no-fee account is more than just keeping the few dollars each month you would otherwise pay for maintaining the account. Keeping those funds in your account means you have a larger balance to earn interest. And as that interest compounds over time, it can exponentially increase your savings.

For example, if you paid $14 per month in account fees, with an interest rate of 4.75%, you’d miss out on $106.04 in interest, compounded monthly over five years. Your total loss over five years, including the monthly fees and the interest, would be $946.04.

How does Growth Savings help you avoid bank fees?

Compared to other accounts, Forbright Bank Growth Savings saves you approximately $5 to $14 per month, because it charges no account maintenance fees. But that’s not all.

We also avoid charging other types of fees that are common with other banks. This includes things like withdrawal fees, which allows you the freedom to move your money around as often as you need to. Some banks also limit the number of withdrawals you can make from a savings account and can typically charge $3 to $25 for each withdrawal over that limit. While some don’t charge a fee for extra transactions, they will close your account if you go over the limit. That means if you need to make an extra withdrawal for three months this year, there are additional savings you could be making by choosing an account with unlimited withdrawals and zero fees.

Here’s a look at some of the fees you might see at other banks, but you won’t see at Forbright Bank –

By avoiding fees, you keep more money in your high-yield Growth Savings account, which translates into earning more interest on those funds. Over time, you benefit from more compounding interest—and the satisfaction of knowing that you’re building a bigger nest egg while contributing to a more sustainable world.

Disclaimer: This article is for information and education only. It should not be considered financial or tax
advice.