The Jamaican financial sector is very competitive, with institutions offering a myriad of products and services. The JBA is committed to ensuring that you understand how to access information about the products and services available, so that you are in the best position to make wise choices.

Banks provide information about the the charges for various services in their banking halls and on their websites. Ensure that you make use of these facilities so you can compare the costs associated with different products.

A common perception in the market is that institutions have increased fees to compensate for a loss in revenue due to the reduction in interest rates caused by the Jamaica Debt Exchange Programme (JDX). A careful look at the main areas of growth however, shows that income from fees continues to be an insignificant portion of the overall revenue of most financial institutions. In the Jamaican market place all institutions are seeking to make improvements in how efficiently and how profitably they are able to offer their services. Banks may choose to adjust offerings or increase fees on particular products and services in an attempt to persuade customers to make use of other products or facilities that are available to them.

Are Banking Fees Necessary?

Banks usually charge fees in order to recover some of the operational costs associated with providing their services, which include staff, location, security, technology and back-office processing. Fees are also used by banks to discourage customers from using services which are relatively more expensive for the bank to provide than alternatives available. It is important however that you always bear in mind that as the consumer you have options. Speak with your banker and seek assistance in finding an option that suits you best.

Here are some pointers about specific products to assist you in decision making and saving money:-

Credit Cards

In choosing a credit card it is valuable to assess the offerings available to you so that you can find the one that best suits your needs. Some credit cards have an annual membership fee, some offer rewards for expenditure, some offer low interest rates, etc. Make sure you are aware of the differences between products so that you can make a good choice for you.

If you pay only your minimum balance each month you will be charged interest at a rate depending on your bank and credit card. If you want to avoid paying interest, you will need to pay the entire balance on your credit card balance before it is due.

Some banks may charge a late fee if payments are made after the due date. Your due date usually falls on the same day each month. If you do not receive your bank statement on time, you should call your bank or check your account online, to get information about your bill. How to avoid other credit card charges
It is important that you carefully monitor your spending and stay within your approved credit limit. Also ensure that you keep your credit card payment receipts and keep track of your expenditure so that you do not go over your credit limit. Also try to avoid making unnecessary cash advances since you are charged for these.
Another option for you to consider is taking out a cash secured credit card. If you have cash in a bank account that you intend to save long term, you may want to consider using this as collateral to secure your credit card so that you can access lower rates.

Loans

When searching for a loan, shop around for the best offer. The best offer may not always mean the lowest rate. Make sure you ask about the rate and tenor of the loan to identify the exact monthly payments that will be required and then decide if this is affordable for you. It is also important that you find out if the rate will remain the same for the duration of the loan or if it is subject to change. You should also find out what the bank's policy is on repayment of the loan and whether it will cost you to repay the loan earlier than scheduled.Bear in mind that loans secured with cash or housing will usually allow you to get a better rate than loans without security.

Chequing Accounts

Bank fees associated with having cheques processed manually can be avoided by making payments online.

Going To The Bank

Some banks may charge a fee for making a deposit or withdrawal at the teller. You can avoid this charge by using the drop box for cheque deposit and the ABM for deposits and withdrawals.Internet banking services allow you to transfer money between accounts and make electronic payments. Using online banking is secure and can be done at your convenience, and it saves time and money for both you and your bank. Ask your bank about products that offer free services or discounts, such as free cheque books, waiver or discounts on specific service charges, or discounts on the cost of

Managers Cheques

These are sometimes available depending on the type of savings or chequing account you choose.