Gyms are the worst offenders at charging joining fees. The way around this is to wait until they have a “no joining fee” special. Or haggle with them. Gyms have competitors and they want your businesses. Thanks to the Google algorithm recognising I was searching for gym fees, I was showered on social media this week with offers of hugely discounted joining fees.
Credit contract fees
When you buy from a store with a credit contract: aka hire purchase, GEM Visa, Farmers card and other store cards, you’ll pay fees. Even “interest-free” deals have establishment fees added to the cost of the item you’re buying. There may be late-payment fees if you miss a payment, even on interest-free deals, and there may be administration fees such as a PPSR search fee, and credit check fees. It’s the same with car loans. Those upfront fees can be quite expensive.
Booking fees
Booking fees for show tickets really are a rip-off, although difficult to avoid. Ticket booking companies such as Ticketek often have exclusive rights to sell tickets with no competition. At least make sure not to pay extra to have the tickets posted out or couriered. On that note, have you ever turned up in person for a film or show and been charged booking fees? Could you imagine if the supermarket charged you “booking fees” at the checkout? It’s nonsensical.
KiwiSaver fees
All KiwiSaver providers charge fees. They may charge an annual fee, which is easy to spot. However, there are many hidden charges such as investment management fees, performance fees, and fees from underlying funds. Over your working life, these fees add up to tens of thousands of dollars or more. Searches on a portal such as the Sorted Fund Finder can help you compare those fees and their effect on your fund growth.
Convenience fees
Some organisations charge a “convenience fee” for using a credit card, even though the convenience is theirs, not the customer’s. They’re getting paid after all, which might not have happened if the credit option was not available. ACC charges a 1.9 per cent “convenience fee” for payment by credit card and, unbelievably, for debit card payments as well. It says on its website that Westpac is the culprit for this. The card payment fees for airlines and others are similar. Ways around this with Air New Zealand, for example, include paying with points and using the airline’s own travel card. POLi is also offered by the airline as a fee-free way to pay, but the banks say it breaches their terms and conditions.
Banking fees
Bank fees are often not as egregious as they used to be. They exist, however. You may be charged for extra statements, branch/phone-assisted transactions, unarranged overdrafts, foreign currency fees/margins and so on. On the rare occasion I’m charged a fee for anything by the bank, I argue until it is removed. It’s probably not worth my time, but my bank makes sufficient money from holding my cash for free and lending it out to borrowers (aka interest rate margins) in my humble opinion.
Foreign exchange fees
I wrote a few weeks ago about travel money and how one foreign exchange card had way cheaper fees than the others. And don’t be fooled by services that claim they are fee-free. Those fees are hidden by the banks, which build them into poor exchange rates that mean less money in your travel wallet.
Buy now pay later
Many people who love “buy now pay later” because it’s “free” end up paying late fees or similar. That’s how these companies make their money.
Avoiding these and other sneaky fees can save a large amount of money over a lifetime.
