Michael on March 4th, 2010
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One of my relatives recently was charged a substantial fee for rolling his 401(k) plan out to an IRA.  In my opinion, that’s total nonsense, even if it’s disclosed.  It’s the equivalent of an “account closing fee.” Can you imagine?

You: I’d like to close my account.

Bank: I see you have $100 in your account so sorry, you can’t.

You: Excuse me?

Bank: We charge $100 to close accounts here.

You: That’s ridiculous.

Bank: It’s our policy.

You: So if I keep it open or if I leave it here, it’s the same for me, isn’t it?

Bank: Yes.

You: I’ll keep it open until you change your policy.

Bank: Very well then.

It’s as though you can’t win – you can only delay the inevitable.

You: It feels awful.

I agree. Jeremy at Taking Charge (a blog affiliated with creditcards.com) wrote of his experience trying to handle basic financial transactions and the onslaught of fees.  It’s an enjoyable read and not just because I’m quoted.  I give a couple of tips to avoid the headaches, including not dealing with banks for the types of transactions he was undergoing.

Rather than trying to get out of fees, choose vendors that don’t charge them in the first place.

What do you do to avoid silly fees?

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