Home Internet Equipment Rental Fees Could Be Costing You $180 a Year or $1,800 a Decade. Here's How to Ditch This Fee

I go out of my way to avoid extra fees as much as possible. ATM fees, bank account maintenance fees, and foreign transaction fees are some fees I strategically avoid paying. Another expense I stopped paying many years ago is home internet equipment rental fees. Many people have this additional fee included on their monthly internet bill and aren't aware of how much it costs them. Let me show you how to ditch this unnecessary fee for good.

Equipment rental fees can add up fast

If you have home internet access and don't remember buying the router or modem you use, you're likely paying a monthly equipment rental fee. Most internet service providers let customers borrow this equipment for a monthly fee. These fees can quickly add up and significantly impact your checking account balance.

Many major internet service providers charge at least $10 per month, but a fee of $15 per month is common. A $15 equipment rental fee will cost you $180 annually. If you continue using the same internet service provider for a decade and keep renting its equipment, you'll spend $1,800 on these fees. That's a lot of money that could be better spent elsewhere.

Here's how to get rid of equipment rental fees

Are you sick of paying equipment rental fees? You can eliminate this expense by purchasing your own equipment and no longer renting from your internet service provider. This will require you to spend money upfront, but doing this can save you a lot of money in the long run. Many modern home internet equipment options are combinations of modems and routers in one.

Many internet service providers offer guidance on approved devices that work with their services. Check your internet company's website for more information so you end up with a compatible device. One option is to buy brand-new equipment. Another more affordable option is to get a used device online or from someone in your community.

If you buy a device, contact your internet service provider to have the rental fee removed from your future bills. It will likely be removed after you return the borrowed device. This move could help you free up income for other expenses or personal finance goals.

I've saved $800 in fees since 2019

I've owned my current piece of equipment for about five years. I bought a brand-new device for around $100. If that sounds expensive, I have some good news. You can find much cheaper devices, including options for around $50. Take some time comparing options and look for deals to avoid overspending.

I chose a newer model device because I was moving into my first home and wanted an unused, well-rated device that would last a long time. Considering I spent about $100 and would have paid about $900 in fees throughout the last five years, I saved around $800. I'm happy with that!

Look for ways to trim your spending

This is one easy way to trim your monthly spending. Reviewing your spending carefully and eliminating unnecessary costs, including extra fees charged by cable or internet service providers, can be beneficial. If you want to take a closer look at your spending and learn how to budget your money, we recommend using one of the apps on our best budgeting apps list.