5 Sneaky Cell Phone Fees
Activation and upgrade charges add up fast.
Thinking of switching to a new wireless provider? If it’s one of the major national carriers, expect to be slapped with an activation fee -- typically about $35 -- for each new line you open. For a family plan with four lines, that would add up to a whopping $140. The salesman may be willing to waive the fee if you threaten to walk away. Or keep an eye out for promotions that allow you to sign up without activation fees. Recently, customers who bought Verizon Wireless phones through Best Buy paid no activation fee.
Even if you stick with your current provider, you may not be off the hook. The big carriers also charge an activation or upgrade fee when you are extending your contract and you purchase a new phone or qualify for a free phone. That fee ranges from $18 at T-Mobile to $36 at AT&T and Sprint. Depending on your carrier’s rules, you might bypass the fee by purchasing a phone from another source -- but first check whether you can use the phone you want to buy on your network. If you buy a full-price phone from your provider with no contract, you’ll likely dodge the upgrade fee -- but you’ll pay a lot more than you would for a subsidized phone.
Early-termination fee. The price for exiting your contract early can be as high as $350, depending on how much time is left on the contract (the major carriers prorate the fee). If you can get a better deal elsewhere, do the math to decide whether canceling now will save you money. You can try to negotiate to eliminate or lower the early-termination fee; if you have a good reason for canceling, such as moving out of the country, you’re more likely to succeed. Or try selling the remainder of your contract at www.celltradeusa.com (you’ll pay a $20 listing fee).
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Texting charges. Most of the big carriers charge $20 per month for unlimited text messaging. If you have an iPhone or Android phone, you can save $240 a year by downloading the Textfree app, which allows you to send and receive text and picture messages free over a data or Wi-Fi connection (you’ll use a separate phone number for sending and receiving messages through the app).
411 fees. No need to pay a couple of bucks plus airtime to dial directory assistance. A service such as 1-800-FREE-411 will do the job, and you’ll pay only for the minutes you use. Or, if your phone has a data or Wi-Fi connection, you could do a Web search instead.
Stealth cell-phone fees. Check your bill each month for unexpected fees from your carrier as well as unauthorized charges that third-party companies sneak into bills -- a practice known as cramming. Schwark Satyavolu, chief executive of online savings tool BillShrink, says that in the past, he has contacted his cell-phone carriers to remove unrequested services from his bills, including international calling, a ringtone subscription and an insurance plan. If you don’t typically buy services, such as ringtones and games, from other companies, you can fend off the fees by asking your carrier to block third-party charges.
-
Use An iPhone? You May Be Hearing From A Class-Action Lawsuit Group
A handful of suits against the iPhone maker seek to crack down on everything from app store purchases to messaging.
By Keerthi Vedantam Published
-
Capital One/Discover: What's In Their Wallet For You?
Push back on Capital One's planned merger with Discover is growing with one group of consumer advocates calling for a public hearing.
By Keerthi Vedantam Published
-
403(b) Contribution Limits for 2024
retirement plans Teachers and nonprofit workers can contribute more to a 403(b) retirement plan in 2024 than they could in 2023.
By Jackie Stewart Published
-
Roth IRA Contribution Limits for 2024
Roth IRAs Roth IRA contribution limits have gone up for 2024. Here's what you need to know.
By Jackie Stewart Published
-
Four Tips for Renting Out Your Home on Airbnb
real estate Here's what you should know before listing your home on Airbnb.
By Miriam Cross Published
-
Five Ways to a Cheap Last-Minute Vacation
Travel Procrastinator? No matter. You can pull off a fun and memorable getaway on a moment's notice — without breaking the bank.
By Vaishali Varu Last updated
-
How Much Life Insurance Do You Need?
insurance Instead of relying on rules of thumb, you’re better off taking a systematic approach to figuring your life-insurance needs.
By Kimberly Lankford Published
-
Five Reasons You Shouldn't Shop on Amazon Prime Day
Smart Buying Think twice before getting lured into buying a bunch of stuff you don't need just because it's on sale.
By Andrea Browne Taylor Published
-
When Is Amazon Prime Day?
Amazon Prime In 2023 Amazon had two Prime Day events — one in July and another, called Big Deal Days, in October. We expect 2024 to follow the same schedule.
By Bob Niedt Last updated
-
How to Shop for Life Insurance in 3 Easy Steps
insurance Shopping for life insurance? You may be able to estimate how much you need online, but that's just the start of your search.
By Kaitlin Pitsker Published