Cash advance fees can vary from bank to bank. There has been a steady increase in bank fees as a result of the new regulation that will take place in 2010. This is one method banks are using to help increase their profitability. You can calculate cash advance fees using an easy technique. Make sure you know exactly how much you are being charged before you get a cash advance. Also the interest rate, for cash advances, is much higher than your rate for purchases.
Instructions
1. Find out what percent you are being charged for a cash advance fee. Banks will typically charge between 3 percent and 5 percent of the transaction amount. When you do a cash advance, there is no maximum fee or cap in place. Therefore your fee will be based on the entire amount calculated. You could incur a minimum fee, such as $10, as well. No matter what amount you receive in cash you will pay at least $10.
2. Get a cash advance from a bank teller. Assume that the fee is 5 percent and you want $2,500. Take the $2,500 and multiply it by 5 percent or .05 to get the answer, ($2,500 x .05 = $125). Your fee will be $125 for this particular transaction. This same transaction can be done in your calculator. Input or key in $2,500 so that it shows in the display. Hit the multiplication key and then hit the 5 key and the percent key. Your answer should show up in your calculator display.
3. Go to an ATM to get a cash advance and you may be charged an additional $1.50 to $2.50 if you use another bank's credit card. You will need your four-digit PIN for this transaction. The fee you receive will depend on the other bank, which is arbitrarily assigned.
4. Review your terms and agreements. The fees you are charged could change but banks are required to give you adequate written notice prior to the change. If your fees increase, you will pay more for your cash advance. When the interest rates on cash advances increase, the amount of finance charges you pay will also increase. Watch out for credit card information that you receive in the mail. Many people think they are receiving junk mail and toss the new information in the trash. If the cash advance percentage does increase, you can perform the same transaction, to find your cash advance using the higher percentage.
