Computers are switching the way we do banking, but some things, like bank fees, remain to eat into our budgets. It pays to decide which services are important to you and then compare costs for those services between several banks before deciding where to park your money, whether that’s in a brick-and-mortar bank in your neighborhood or an Internet bank in cyberspace.

Saving Money: If you’re using a bank account to save money, are you paying a monthly fee? If you hold a no-fee account, it may still be costing you money if you’re required to keep a lower limit balance of any significance in order to keep off monthly fees. That balance, invested in a CD or interest-bearing account, could be getting you money. If it isn’t, you may want to think your options, or at least be aware of the costs so you can make intelligent trade-offs between costs and the services that are important to you. The best bet might be a bank that offers free checking if you hold a savings account with a minimum balance. By holding only as much money as you need to pay immediate bills in your checking account, more of your money is working for you by earning interest.

Get information from different banks and choose the one that best suits your habits. If you always dip below the minimum balance, it does no good to have “free” checking, since you will incur a fee if your balance goes below the smaller limit.

If you normally keep a significant balance in an interest bearing bank account, it’s to your advantage to keep it in a bank that uses the standard daily balance method for calculating your minimum balance and interest. You’re much less likely to be charged a fee if you dip below the lower limit balance during the calendar month (as long as your average daily balance for the total calendar month is not below the minimum), and you earn interest on all your money. Some other methods of calculating interest can cost you hundreds of dollars a year in interest that would hold been credited to your account under the standard daily balance method.

Borrowing Money: The differences in banking costs are fair obvious when you’re borrowing money. Obviously, a lower interest rate will keep you money, right? Not necessarily. Fees, points, closing costs, and other factors can end up costing you more even if the rate is lower. See “selecting the Best Mortgage For You” for an example of the types of issues to think when taking up (whether for a mortgage, car loan, or other type of loan).

Check Printing: Why pay $25 or more for check printing when you can use a discounter like Current (1-800-533-3973) or Checks in the Mail (1-800-733-4443) for a fraction of the cost? Discounters charge around $5.00 for 200 checks, as opposed to the $25 your bank charges.

ATM Fees: Use only Automated Teller Machines (ATMs) that don’t charge a fee. If you withdraw $20 from an ATM and are charged $1.50 for the transaction, you hold in effect paid a 7 1/2 % surcharge for the use of your own money.

Overdraft Fees: Balance your checkbook every month and do not bounce checks. Typical fees for a check written against short funds range from $20 to $25. If more checks clear before you are aware of the problem, you can easily bounce 2 or 3 additional checks for a total cost of up to $100.

Online Banking: There are two ways to do On-line banking. With Internet-based banking, you can dial in to the bank’s computer using any computer with a modem, and use the bank’s computer software. Client-based systems need you to download information from the bank into personal finance software that resides on your computer’s hard drive. Internet banking is the way of the future, so if you’re just getting into On-line banking, you might save yourself time and problem by selecting a bank with Net-based banking.