If you are like most people, hidden fees and charges can be the biggest roadblock to establishing a good banking relationship. Some people are so worried about hidden or unclear fees that they use check-cashing services because the fees are clear and upfront, even if they are generally higher than banks.

There are many reasons why using a traditional bank or credit union may be in your best interest. Banks rarely offer just one checking or saving account product—they tend to offer different options depending upon how much money you plan to keep in the account and how often you will be using it. Understanding which of the many options is the right one for you is your challenge.

Before making a choice, you should study all the products a bank has to offer and don’t hesitate to ask questions to customer service representatives. The graph below shows checking accounts at three different national banks, a check-casher and prepaid debit card alternative:

Based on 4 non-bank ATM withdrawals per month, $400 per week paycheck, 4 bill payments (check, money order or bill pay service). Prepaid debit card cost based upon median monthly fees and median transaction costs for 4 withdrawals. Check cashing costs based on 2% fee per paycheck. In states where check-cashers are regulated, the fee will generally not exceed 2% of the value of the check, states without regulation may have much higher fees.

Densie Smith’s example

Denise Smith receives an $800 paycheck every two weeks; she doesn’t have a bank account because after paying her bills each month she feels she doesn’t have enough money to keep an account open. The 2% fee to cash her check means that she pays $32 a month for check-cashing and makes about 6 payments a month for rent, utilities, phone and cable through bill payment services and money orders. On average, she pays $39.50 per month for her banking needs.

If Denise were to open a checking account at her Bank A (above), she would be charged a $3 monthly fee with a $1.50 cost every time she uses an ATM not at her bank. She pays her bill by check. She, on average, makes four non-bank ATM withdrawals. In her case, she would be better off opening a checking account at her local bank.

Within one year, Denise could potentially have saved $366. If she can convince her employer to pay her through direct deposit into her account, she may be able to get her monthly service charge of $3 waived, saving her an additional $36 each year.

But remember, Denise’s biggest concern about using a bank was fear that she didn’t have enough money month to month to keep an account open. If Denise outspends her account balance one month, her bank will charge her a fee of $24 for non-sufficient funds. Every check she writes after that would bounce for an average per check fee of $24. So, in one month of mismanaging her funds, Denise may have to pay over $100 in fees from her bank. That’s why budgeting and managing money well is critical to keeping your finances on track.