Did you know that Americans are losing an average of $3,200 per year due to hidden fees? These charges often go unnoticed but add up quickly, from dining out to booking travel and using banking services. The worst part? Many of these fees are buried in terms and conditions, so they’re not always obvious to the customer. Here’s a look at the seven most common junk fees and tips on how to avoid them.
1. Restaurant Fees: Service and Credit Card Charges
Dining out seems simple, but many restaurants now add hidden charges on top of your bill:
Service Fees or Kitchen Fees: These fees can range from 5% to 20%, tacked on to your meal cost. While they support the back-of-house staff, they’re rarely explained upfront.
Credit Card Fees: Many restaurants now charge you for using a credit card to pay, typically around 2.75%. The only way to avoid this is to pay with cash.
2. Cable & Internet Fees
Cable and internet providers often advertise low monthly rates, but once you look closer, there are plenty of extra costs:
Broadcast TV and Regional Sports Fees: These are often hidden in your cable bill.
Router Installation Fees: You may be charged extra for setting up your internet, despite the low advertised price.
To avoid these, consider streaming services like Netflix, which charge a straightforward, flat rate without the hidden fees of cable.
3. Travel Fees: Airlines, Car Rentals, and Hotels
Traveling can be expensive, and hidden fees quickly add up:
Airlines: Airlines are notorious for charging for things like early boarding ($35 on Frontier Airlines), selecting your seat, or checking in with a counter agent. To avoid these, book directly with the airline and check their fee structure before booking.
Car Rentals: Many rental companies charge daily fees for toll transponders, which can be nearly $5 a day. Opt for a transponder when picking up the car, or bring your own if you have one.
Hotel Fees: In addition to room charges, hotels are increasingly adding “destination fees”, which are a charge for simply booking a room. Always research thoroughly before you book to avoid these surprise costs.
4. Banking Fees: Account Maintenance, ATM Withdrawals, and Overdrafts
Banks are another major source of hidden fees. Here’s how they add up:
Account Maintenance Fees: Some banks charge you just to keep your account open.
Out-of-Network ATM Fees: Withdrawing money from an ATM that isn’t part of your bank’s network can incur fees, especially if it’s out of state.
Overdraft Fees: If you don’t have enough funds in your account, you may be charged for attempting a transaction.
To avoid these fees, choose a bank with in-network ATMs or one that’s part of a large ATM network. Additionally, ensure your account type suits your financial habits.
5. Payment App Fees: Instant Transfer Charges
Payment apps like Venmo, PayPal, and Cash App have become incredibly popular for quick transactions. However, you might face a fee for instant transfers, meaning you’ll be charged to access your own money right away. Experts argue that immediate access to your funds should be free.
To avoid these charges, wait 1-3 business days for the funds to transfer without a fee.
6. Delivery Fees and Service Charges
Ordering food or shopping online can also lead to hidden charges:
Delivery Fees: These can range from $2 to $10 depending on where you order from.
Service Charges: Many companies now charge a service fee for handling your order, especially in food delivery.
To avoid these, try ordering directly from restaurants or businesses that don’t have extra service charges.
7. Subscription Services: Auto-Renewal and Hidden Costs
Many subscription services, such as streaming platforms, fitness apps, or digital magazines, will renew automatically at the end of your free trial or billing cycle. However, some also add hidden charges or change their pricing over time without notifying you.
To avoid being hit with unexpected costs:
Track your subscriptions and cancel them before the renewal date.
Always check the terms and conditions when signing up for a service.
How to Avoid Hidden Fees and Save Money
Hidden fees may seem small at first, but they quickly add up to significant amounts. To avoid spending an additional $3,200 per year, make sure to:
Always read the fine print for service charges or hidden fees in restaurants, travel, and banking.
Opt for cash payments when possible to avoid credit card surcharges.
Do your research before booking hotels or travel to avoid surprise fees.
Track your subscriptions to prevent auto-renewals from draining your wallet.
By staying vigilant and doing your homework, you can avoid these sneaky fees and save more money!
