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US Bank Hits IRA Customers with Higher Fees

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US Bank (OH)

US Bank is hitting its IRA customers with a higher annual fee, and it's making it harder to avoid. Several readers have reported receiving a letter from US Bank informing them of higher fees on their IRA CDs. In summary, the annual fee is going up from $10 to $30, and the minimum IRA balance to have this fee waived is going up from $5,000 to $25,000. This takes effect in July on both existing and new accounts including those with IRA CDs. I just confirmed this with a call to a US Bank IRA specialist.

As readers have mentioned, this fee increase is very unfair for IRA customers with CDs. Many US Bank IRA customers won't be able to increase their balance to $25,000 due to the IRA contribution limits. Those with IRA CDs with balances under $25K will either have to pay the fee or do an early withdrawal and get hit with US Bank's hefty early withdrawal penalty.

I was told by the US Bank IRA specialist that a customer could open a new CD under their IRA account, and if the existing IRA CD and the new IRA CD combine to equal at least $25K, the fee would be waived. This assumes the added money is under the IRA contribution limits or is money transferred from an IRA at another institution.

If you're looking for banks to hold your IRA, avoid those which have annual fees. As US Bank has shown, they can raise their fees and make it very hard to have the fees waived. Fortunately, many banks and most credit unions don't have IRA annual fees. To compare IRA CD rates, please refer to our IRA CD rates tables.

This new fee brings up an important question regarding CDs. What changes can a bank make to existing CDs? As a reader described, this fee change at US Bank is a lot like raising an early withdrawal penalty on an existing CD. Many of us have assumed a CD is like a contract in which the rate, maturity date, early withdrawal penalty and other terms will apply until maturity. If banks can break these contracts on their own, CD account holders will be at risk of more abuse. I discussed this issue many times especially after Fort Knox FCU increased its early withdrawal penalties on existing CDs.

US Bank is a national bank regulated by the OCC. You can file a complaint at the OCC's website, helpwithmybank.gov.


  Tags: US Bank (OH), IRA rates

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Comments
54 Comments.
Comment #1 by jshannon posted on
jshannon
US Bank IRA customers are now called IRAte customers.

15
Comment #2 by Anonymous posted on
Anonymous
Well said. I received a notice about new fees for my non-existent checking account which I had closed a year ago.  Hard to have confidence in this bank's fiduciary abilities. Frankly, experienced poor customer service as well- found them manipulative and verging on dishonest, so I closed my account. Filed a complaint with their headquarters as wel.

7
Comment #3 by Anonymous posted on
Anonymous
Who can blame US Bank??? Since the liberals controlling our government are trying to ruin banks(important step in destroying capitalism....don't believe it? Read Marx)...they have to get income from somewhere to survive. This is what happens when you elect liberals....and elections have consequences.

3
Comment #4 by emdtech posted on
emdtech
I agree with #1 posting. Amending an existing CD to increase fees is really not fair as that fee will significantly reduce overall return on a smaller CD. They should "grandfather" any existing CD account until maturity unless US Bank wants to drive out the smaller savers.

I am glad that I did not open an account with US Bank.

I see we have another nut job posting his right wing views again (posting #3).

10
Comment #5 by Westcoastliberal (anonymous) posted on
Westcoastliberal
I've been fighting this stupid-**** move by U.S. Bank to stick it to their customers since I first received the letter. So, they're increasing their fees in the middle of my 7 month CD in a SEP that matures in Sept.  The letter says the fee will be increased in July and my account will be debited in that amount.  Will that count as a "loan" from the IRS?  Because at the piddly interest rate they're paying, it puts me in the whole on my small account.

So far, I've talked to a CSR at their national #, she was a B, referred me to the fine print of the depositor agreement, so I asked for a supervisor & was told someone would call me back.  Nora Duncan of their Encinitas, CA called me and was clueless, so I emailed a scan of the letter to her.  She said "We've gotten a lot of call about this, but we don't have a copy of the letter".

Still no answer from Nora.

So last Friday I stopped by my local branch and presented the letter to the teller, who called national and went through the most embarrassing (for her) verification process you're ever heard...beats the secret handshake.  She had me stand there for a good 20 minutes until I told her this is ridiculous, have someone call me.  She promised she would.

This is flat-out highway robbery.  I know it's not that much but the idea that a big-**** National bank would jack up a fee 300% in the middle of the term and oh by the way if you bail you'll STILL pay out the A is just wrong.  Before I left the bank I asked the teller how the bank could in good faith do this to their customer?  I'm sure several other customers heard me say this too.  She obviously didn't have the answer.

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Comment #9 by mealworm posted on
mealworm
        Anyone who had their fee changed as I did on there existing ira CD please file your complaint at www.helpwithmybank.gov.If you click on fees and read the second paragraph you will see this raise is strictly wrong because they are chnging the rules in the middle of your contract .PLEASE PLEASE don`t just do nothing.They could just as well take whole account just like a bully in the school yard.

3
Comment #10 by Anonymous posted on
Anonymous
Mealworm....they have every right to change it. Just because it is mid-term means nothing. It's no different than rates going up on rent,cable tv,club memberships,etc. Banks are having an extremely hard time staying in business (see bank failures since 2009-it's amazing). The Obama administration has made it difficult to make a profit. They are the ones you should be upset with. It's a fee....big deal. Get over it. Be thankful US Bank is still here. I have found them to be a very good institution with good customer service. Don't take it personally...as I said....it's a fee. Pay it and move on.

1
Comment #12 by Anonymous posted on
Anonymous
I can guarantee the bank can charge this fee. They have a whole legal team that does nothing but verify the legality of their actions. They wouldn't charge it unless they were allowed to under their terms and conditions. You're wasting your time trying to get it removed. Pay the fee and go on with your life. It's actually not the end of the world.

1
Comment #13 by Anonymous posted on
Anonymous
Unlike you whiners and complainers.....I took responsibility over my affairs and handled my business with US Bank. I got a letter a few back saying fees were going up on my account. It was very polite and concise and contained all info necessary. And it gave me plenty of time to take action(about 6 weeks). It offered various ways to make some changes to avoid the fee....and I accepted one of them. It took all of about 10 minutes by phone with a very friendly csr.....and turned out to actually be a better deal for me. .........So......ignore all these crybabies on the board......they are only giving your their side of the story. US Bank is a fine instituion, They are increasing their fees because they have to stay competitve. (PS-Mealworm.....you're a typical liberal I bet......squealing to the government to help you....pathetic)

1
Comment #14 by Anonymous posted on
Anonymous
I agree with latter comments supporting US Bank. I really don't see what the big deal is.....$30.00 sounds fair and not expensive. remember.....the bank has cost themslves associated with every product. Do you expect them to accept losing money???? They have a right and an obligation to make a profit. I, too, find it amazing that people can get this upset over a 1 time, yearly fee of $30. Amazing.

1
Comment #15 by TJJackson posted on
TJJackson
it is interesting to me to note the rather sudden surge of pro-us-bank comments, and how uninformed the responses are. also interesting (but not suprising) that they all chose to make these comments anonymous.  I rather suspect the web admin would find some very, very similar source IP addresses if they examiend the full admin detail on the comments

To Anonymous Monday, June 6, 2011 - 12:00 PM: First, the bank makes a profit by taking the money in the CD and investing it in higher-return investments.   They do not need a fee to profit, and they are not losing money on the deal.  They never would have offerred the CD in the first place if they were not confident of making money on it.  They offerred 2% because they knew they could make more than 2% over the life of the CD.  As to being upset, consider that most of us went from a 0 fee (balance in excess of 5k) to a 30 dollar fee.  Would you be OK with ordering a meal listed at 10 dollars on the menu at a restaurant and then (having eatne said meal) being presented with a bill for 30 dollars? I don't think the typical person would meekly hand over the 30 dollars without complaint.

To Anonymous - Monday, June 6, 2011 - 10:35 AM: The letter provided only one suggestion to handle the matter - and I have the letter right here with me, so I can quote it if you like - add more money to your account.  This is far simpler said than done.  First, a person with say 5k in an account would have to get their hands on 20k in the 30 days or so until the fee is chearged.  I'm happy you have such quick and easy access to large sums money, tho I (and I suspect, most folks) can't claim the same.  Second, not just any money will do, because this is __IRA__ money - limit of 5k per year recently, 4k/year a few years back.  The additional funds one would have to come up with would be in other IRAs already.  And what of us who either dont have money elsewhere, or have money elsewhere that is ALSO locked up in CDs?   Again, I am happy you were fortunate enough to have this money in more liquid investments, and saw it as merely moving money from one pocket to the other.  Many of the rest of us (myself included) are as well off as you.  Finally, since US Bank has stated it can change the terms at any time, will you keep giving into them if the double the minimum again next month?  The month after that?  Surely, even you will eventually run out of eligible funds to roll over.  

To Anonymous - Monday, June 6, 2011 - 10:18 AM : you're right, it isn't the end of the world.  However, no one claimed it was, so I fail to see the relevance of your extreme remark.  Does an event have to be "the end of the world" in one's life before one addresses it?  If you got cut and blood only dripped out rather than gushed, would you ignore it?  I would say no, for myself.  When I am charged a fee I disagree with, I address it.  I don't meekly pay said fee.  I think most responsible folks handle things the same way.

To Anonymous - Monday, June 6, 2011 - 10:16 AM: Your helpful advice includes "find another bank!!!".  I will do so, but first, let's make sure you understand what a penalty for early withdraw (EWP) is.  Here's a reference for you: http://wiki.fool.com/Early_withdrawal_penalty.  In my case, EWP amounts at this time to roughly 10% of my principal.  I would LOVE to simply move my money elsewher,e but because of the huge EWP, I have to take a much bigger kick in the teeth than the 30 dollar fee to act on this desire.   I believe the Bank will also hit more with a substantial IRA rollover fee in addtion to the EWP if I do so.  So your "helpful advice" isn't quite as helpful as you perhaps thought it might be.  I'm sure you never considered that this possibility - moving money elsewhere - ever coccurred to any of us prior to your mentioning it, so thanks for trying tho. Oh, and it was 30 bucks, not 20 - so thanks also for carefully reading everything before you entered your well-considered reply.

To Anonymous - Monday, June 6, 2011 - 10:05 AM: I dont think anyone is taking it personally.  I don't take it personally when the grocery store clerk charges me for a case of pop when I am buying a 12 pack - but I do have them correct it.  I don't take it personally when a waiter charges me for the 16 oz steak when i ate the 10 oz steak - but I do have him correct it.   Etc.  Etc.    Unless one is made of money - and most of us aren' - i consider it fiscally irresponsible to not address such issues.  This particular issue means my family has 60 after-tax dollars less to work with, and that is not inconsequential.  For those of you to whom 60 dollars is inconsequential, I invite you to send 60 dollars to me at your earliest possible convenience.  You clearly won't miss it, and I sure could use it. 

13
Comment #16 by TJJackson posted on
TJJackson
In my comment to Anonymous - Monday, June 6, 2011 - 10:35 AM, I said in part  "Many of the rest of us (myself included) are as well off as you."  I left out the key word "not", as in "Many of the rest of us (myself included) are NOT as well off as you.".

Sorry.

2
Comment #17 by Anonymous posted on
Anonymous
> it is interesting to me to note the rather sudden surge of pro-us-bank comments,,

> I rather suspect the web admin would find some very, very similar source IP addresses 

Yeah, looks like astroturfing ( http://en.wikipedia.org/wiki/Astroturfing ) by US Bank employees.  Bad astroturfers at that because they come off appearing like jerks.

I don't have a US Bank IRA CD so it is no skin off my nose -- but if I *did* have one and I had no recourse (contributions limited by government), and fees if I transfer out (breaking CD), or stay put (under new limit): I'd be super ****ed.

In any event, I now have "US Bank" tagged as "avoid; they're shady" in my brain.  I'll be staying a US Bank non-customer for the remainder of this lifetime!

6
Comment #18 by TJJackson posted on
TJJackson
I know several US Bank account holders who are just exactly that - "super ****ed".  

If one of my options was to walk (without huge penalty) I'd only be mildly ****ed and my money (all of it, not just the IRA CDs) would already be elsewhere

4
Comment #20 by Westcoastliberal (anonymous) posted on
Westcoastliberal
I must say, I'm in total agreement with Mr. Jackson regarding the sudden influx of U.S. Bank trolls cheerleading for their team.  Just let me say this..if it was YOUR $30 you would be ****ed off as well.  I don't have a problem with them raising their fees; I do have a problem with them doing it in the middle of the CD term.  It's one of the most anti-consumer dumbass tricks I've ever seen.  By the way, are they paying on a "per post" basis?

2
Comment #21 by Anonymous posted on
Anonymous
I can see why people a upset...changing fees like that in mid-term. I do ,however, take issue with one thing Jackson said. Banks have every right to make profit. You act like its a dirty word. And they have many costs....not just the product......rent,taxes,payroll,electric.....the list goes on and on.

1
Comment #25 by Anonymous posted on
Anonymous
Adding a fee to an existing CD reduces the real interest rate.  When US Bank post a rate and charges a fee they put banks not charging these fees at disadvantage.  They should be required to state their real rates. I will be moving a very large amount of money from my 401k to bank IRAs later this year.  You can be sure US Bank will not be where any of it goes.

5
Comment #28 by TJJackson posted on
TJJackson
To all those simple responding with personal attacks, ie "get a life", "you are pathetic" etc etc ad infinitum - I will not be responding to your posts.  I don't care what you think of me or my life, frankly.

To Anonymous - Monday, June 6, 2011 - 8:55 PM: I never said Banks dont have a right to make a profit.  Of course they do.  I never said profit is a dirty word.  Of course it isn't.  Please dont put words in my mouth, Ok?  Thanks.  That said, when a bank puts together the terms of a CD, they set terms at the time that are structured so that they ARE making a profit.  I therefore expect when they issue a CD offer the terms provided at the outset cover those costs for the term of the CD.  Banks make their money primarily by reinvesting the principal in other vehicles, earning more than they have to pay back in interest. 

6
Comment #29 by TJJackson posted on
TJJackson
Alow me to re-iterate my earlier statement to those of you questioning any concern whatsoever over 30 (or 60) dollars.

Since you do not think of that sum of money as consequential, please send me 30 (or 60) dollars at your earliest convenience.  I thank you, and my family thanks you.  Thanks from all of us, in advance. 

2
Comment #30 by Anonymous posted on
Anonymous
Making a profit is why banks are in business. There is no gurantee, when I opened my account the fees and interest rates charged were the best availible to me at the time. By charging an annual fee U S Bank is changing the terms of our agreement. I think the common term used for this type of transaction is bait and switch.

U S Bank has two options waive the fee until all the effected accounts mature and customer can move their balance without incurring fees. the second is to allow cusomers to close their accounts without fees and penalties.

in the past banks relied on trust to stay in business actions like this erode trust eventually US Bank will take long time to recover from this fiasco.

2
Comment #32 by TJJackson posted on
TJJackson
To Anonymous Tuesday, June 7, 2011 - 11:20 AM:  I have been satisfied with US Bank for almost 20 years now, but this was just classic bait and switch, and just I can't tolerate it.   Plenty of other banks out there who will be happy to make use of my deposited funds without ****ing me in the process.

4
Comment #33 by Anonymous posted on
Anonymous
Closed my US Bank account today -- had a free savings account with them for 5 years.

Only reason I had the account was for convenience -- US Bank had a branch inside the supermarket near my old house...  Savings account didn't pay any real interest, so they were making coin off my balance.  A reasonable exchange of goods for services, I thought.

Didn't use the account anymore (I've moved to a new house) but never bothered to close the savings account.

Drove by a US Bank today and, thinking of this thread (and the fees that are scheduled to kick in later this summer), I went in and ended my relationship with them.

Suck on my withdrawal slip, US Bank Trolls! :-)

7
Comment #34 by Bill Mack Greendale (anonymous) posted on
Bill Mack Greendale
These crooks made me open up checking and savings account to get a Home Equity Loan. I told the bank rep that I didn't want any stupid checking and savings account, and the rep insisted that I would never have to put any more money in these accounts forever. The U.S. Bank rep assured there would not be any fees. After two years of Home Equity payments I get a notice that they are going to charge me $8.95 going fiorward. I protested and the Manager said he would cancel my checking account and I said great. The next day I received a letter saying that because the checking account was cancelled my rate would be raised from 3.99 to 4.25?? What kind of bull**** is this? I then told them I would pay the loan off in full. I then found out that there would be a very stiff penalty, until the third year of the contract. I will pay this crap loan off immediately after the three years are up. I still don't think that they can do this in the middle of the game. I am going to pursue to Attorney General for investigation. U.S. Bank wasn't honest with me from the get go. Bill Mac Greendale Wi

4
Comment #35 by WP (anonymous) posted on
WP
How can anyone defend raising the fee from $10 to $30 and the minumum from $5k to $25k?  Turns out since I have both a Trad and a Roth, I'll get hit with $60 fee every year until the CDs mature and I can move them out of US Bank (at which point I'm sure they will charge an exit fee).  Oh please, the banks are making plenty of money on a long term CDs paying 2.5% interest.   Just another way to nickel and dime us even when we try to be a smart saver, find the best CD interest rate at the time and not invest everything for retirement in the stock market.  I think changing the minimum to $25k is the most infuriating part along with US Bank giving us those wonderful suggestions of moving our checking, credit cards, etc to them so the fees will be waived.  Why throw good money after bad?  I'm done with US Bank.

6
Comment #36 by Anonymous posted on
Anonymous
Bill Mack Greendale.....that's hilarious.  I'm still laughing!!  Well....something tells me we're not getting the whole story. So.....I'm curious......who took you by force to US Bank and made you get that loan? Hey....you want to borrow money, buddy? Well....then you do as you're told. It's no big deal to open an account. Dont like it?.....go to another bank. Don't like the penalty? Then why did you sign the loan? Listen up, bud.....when you borrow money.....you're no longer in the driver's seat. I'm thinking you were pretty lucky to even get that loan. So stop complaining.

1
Comment #38 by Tom Consumer Advocate (anonymous) posted on
Tom Consumer Advocate
We must boycott U.S. Bank.  That's the only communication that these heartless and greedy massive corporations understand these days.  They will bleed the "little guy" dry without batting an eye, until consumers start to show they're taking their business to other (honest) banks.   Spread the word to everyone you know about how U.S. Bank does business without integrity or honesty.  Boycott U.S. Bank!  Boycott U.S. Bank!  Boycott U.S. Bank.  When their shareholders take a loss, you can be assured they won't rip-off people in the future, and other banks will also heed the warning that consumers send, ...but only if we all take action and boycott U.S. Bank! 

5
Comment #39 by jshannon posted on
jshannon
US Bank raising their fees is okay, but it is/was wrong to do that to CD holders who are locked into their bank and cannot remove their money without penalty. Wrong, wrong, wrong.

7
Comment #40 by TJJackson posted on
TJJackson
I agree, jshannon - they can raise their fees to 100k a year for all I care as long as they allow me to freely - emphasis on freely - move my funds elsewhere.

4
Comment #43 by TJJackson posted on
TJJackson
personally - I'd like to see less name calling and more discussion of the actual issue. 

From all parties.

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Comment #46 by Anonymous posted on
Anonymous
Hi Bill Mack.....me yet again!! Well....I hope it all works out for you. I have a feeling they will still charge you regardless of what is or isn't in the loan doc. But I wish you well.

 

 

 

 

1
Comment #47 by TJJackson posted on
TJJackson
MSNBC now has an article on this issue: http://redtape.msnbc.msn.com/_news/2011/06/09/6821261-new-usbank-ira-fee-can-eat-most-of-savers-interest

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Comment #48 by Anonymous posted on
Anonymous
We need to learn more about CD rollovers to another bank and dump US Bank.

2
Comment #49 by TJJackson posted on
TJJackson
US Bank charges a hefty rollover and account closure fee as well

2
Comment #50 by TJJackson posted on
TJJackson
To clarify my previous comment - I just checked with US Bank, and in the case of rollover of an IRA CD, not only will they charge a rollover and account closure fee, they will also apply the full penalty for early withdrawal

It would appear that some customers would thereby lose a large percentage of their principal, perhaps even more than half, in such a case

2
Comment #51 by Bill Mack (anonymous) posted on
Bill Mack
I have had numerous IRA cd's traditional rollovers and was never charged anything. This shows something about the policy's of U.S.Bank. I won't deal with them anymore, they nickel and dime customers.

2
Comment #52 by TJJackson posted on
TJJackson
If by a "nickel" or "dime" you mean 300 dollars, then yes.

2
Comment #53 by jumitsu (anonymous) posted on
jumitsu
I will be closing my account with them because of this, as if they could care. 

2
Comment #54 by TJJackson posted on
TJJackson
http://tickerforum.org/cgi-ticker/akcs-www?post=187850

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Comment #55 by Anonymous posted on
Anonymous
> http://tickerforum.org/cgi-ticker/akcs-www?post=187850

Keep fighting the good fight, Tom!

I wish there was more I could do from my side -- I closed my USBank checking/savings account last week.  I know it's just a drop in the bucket, but all I can do is vote with my wallet.

I got the "customer retention" speech from the branch manager while closing my accounts -- he wanted me to know that I wasn't going to receive any fees because I had a good balances (even though my "free" accounts are converting next month to have monthly activity/balance requirements).

When I said I was closing them because I thought the new IRA-CD fees were a shady business tactics to lower the effective interest rate, he acknowledged it with a shrug and that repeated talking-point refrain about "it's competitive with the industry."  Sorry, it's not -- Wells Fargo offers a better fee-less deal.  If your bank can't beat a Wells Fargo offer, that's saying something!

The only remaining tie I have with USBank is an old 100k@5%APY 7 Year Jumbo CD from Downey bank (a California bank they took over in 2008).  That CD won't mature until 2014.  Hope they don't figure out a way to charge for regular CDs before then!

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Comment #56 by TJJackson posted on
TJJackson
It's sad and despicable that US Bank is taking the "everyone else is doing it" stance as a defense when really, no, thats barely 10% of the truth - ie many banks are adding fees, but not nearly all of them, and few if any are chaning waiver limts at the same time, and they may be unique in applying it to existing customers locked into existing CDs

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Comment #57 by TJJackson posted on
TJJackson
I appears US Bank may be making some adjustments - details forthcoming

1
Comment #58 by WP (anonymous) posted on
WP
Just received a letter dated June 13, 2011 from US Bank stating I may now transfer my IRAs (both Roth and Traditional) without the $30 transfer/closure fee and there will be no penalties for early withdrawal (I assume early withdrawal because the CD has not matured).  I will be doing a transfer as soon as I can. 

2
Comment #59 by Westcoastliberal (anonymous) posted on
Westcoastliberal
I posted here previously regarding this fee, and after exhausting all attempts to have a rational discussion with anyone at US Bank either in person or by phone, I finally decided to file a complaint with the Comptroller of the currency.  That's the Fed regulatory body for national banks.  Within 10 days of filing the complaint I received a letter from US Bank stating that while they had the right to charge the fee, because they "valued me as a customer" they would waive the fee this time.  So if you're as ****ed off as I was, file a complaint.  It might actually do some good!

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Comment #60 by Anonymous posted on
Anonymous
I have great agreement with -- and sympathy for -- TJJackson. The terms for a CD deposit are a contract.  A contract is a binding agreement.  If only one side (the bank) can change the terms at will, anytime, in anyway, then it's not much of an agreement.  The fair and proper thing to do is for the bank to announce they are changing their terms and apply them to new IRA accounts going forward, and not encumber existing clients who certainly never would have agreed to such terms (or who don't believe they agreed to such one-sided terms!)  

And no, perhaps $30 isn't a big deal to everyone.  But with savings rates so very low right now (The hunt for better returns on our savings is pretty much what this whole blog is about right?) you could put $5,000 on deposit at a commercial bank I can name for a year and might not even earn enough to pay that fee.  The fee certainly affects the outcome of the money you signed on to earn based on the actual APR.  And APR's on anything else (car loans, payday lenders) must clearly disclose how fees can affect the actual APR you are achieving.     

Why do you think the bank applied a 200% fee increase and a 500% balance increase to IRA accounts?  Because the bank knows those accounts are more difficult to move than regular savings accounts.  Anyone trapped by USBank in this way is very likely stuck with a fee they did not expect, at least in the near term. 

As to whether it's "legal," yiiieeesh -- sure I have no doubt the bank has rooms full of attorneys whose job is to justify the bank's new policy. As an American, I am free to spend millions of dollars for a team of lawyers and house them in a pricey downtown skyscraper and cover their expenses while they fight for my rights against a big giant bank.  But that doesn't seem like a wise use of my money, especially if we're arguing about a $30 fee.  That's why this serves as an example of how unfairly tilted the playing field is -- many folks cannot afford to take an hour of their time to wait at one bank then drive somewhere else and spend another half hour opening a new account just so they can move money to express their displeasure over the unfairness of this unexpected alteration of a binding agreement.  Who can afford to waste two hours and a gallon of gas over a $30 fee, yet the bank can feed, clothe, and house dozens of high-priced attorneys to justify the new fee.   Perhaps it would be a nice idea if the highly regulated bank would follow the reasonable recommendation of the laws of our nation and properly disclose reasonable terms (aprs, etc.) in an understandable way.  That is hopefully what Ms. Warren and the agency she isn't yet even in charge of might just do.  

Lastly, as for Anonymous #22, who claimed: Bottom line: Conservatives="I'll take responsibilty and handle the situation"Liberals="Help me,Government!! Help Me!! I'm a victim of evil capitalism!!"

I believe that was a cheap and wholly unfair caricature -- and I'm a registered Republican, thank you.  Conservatives and liberals alike would expect both parties to abide by a contract, whether its a CD term or any other agreement.  Perhaps a Conservative --or libertarian -- might approach the bank with more of a "caveat emptor"attitude, expecting that they must be wary and carefully read the dozens of pages of fine print the bank will toss at you and say "just sign here." and if the conservative has taken the time to educate himself, he might rely on his research of what the market will bear (insofar as fees, terms, etc.) to leave that bank and find another whose terms he likes.  The liberal might expect that a large business in an already very heavily regulated industry probably must be following the applicable rules or they wouldn't be allowed to keep doing business in that fashion.  The bank is very proud to announce the explicit backing of our federal government by displaying that pretty gold seal on its' doors, loudly tout it's compliance with FDIC regulations for the safety of your funds, and trumpet compliance with HUD and other agencies for treating the banks' customers fairly, equally and honestly.  Certainly this instills in the "liberal" consumer the idea that the govenrment is carefully regulating the way this institution does it's daily business, and that some fairly reasonable boundaries are in place for the protection of both parties. 

But again, in either case, the Conservative and the Liberal get to shop around prior to entering the contract.  If the contract changes after you've signed it, then your signature is void, as well.  If the terms under which I have temporarily allowed you to warehouse my money have changed, then my assent to those terms is also subject to change.  And if you can change/revoke your end of the bargain anytime without any expense, harm, repercussion, or expense, then so may I.  Doesn't matter if you're a liberal or a conservative -- contract fraud is contract fraud.  Anon#22 seems to imply that liberals are helpless -- in truth, the conservative is likewise helpless in the face of blatant fraud, unless the conservative can read minds or predict the future, the conservative is just as likely to be harmed by the bank's practice as a liberal would be.  Perhaps moreso, because the "I'll take responsibility" line works well... in a world where everyone does.  I suppose you'd say then, that traffic lights at intersections are only for liberals, who need the government to protect them from cross-traffic, whereas conservatives can proceed thru red lights anytime because they are accepting responsibility.  

True, almost any contract can be altered by incorporating an external schedule, or even by "Force Majeure" or act of God.  But ending or altering the agreement is typically only allowed when both parties assent (or as in act of God, when the mutual consideration afforded both parties outweighs the consideration for attempting to enforce a now-unenforceable agreement, like a rental agreement for a burned out apartment: you could still live there while the landlord rebuilds -- but the untenantable condition releases you both from fulfilling the lease terms.) You cannot be expected to live up to an agreement that says the other party can do anything, anytime, or not, depending on their whim... there'd be no "valid consideration" for such an agreement and it would be thrown out of court.  Please complain vigorously to USBank, please complain vigorously to their regulator and to the BBB and to your state attorney general.  And then, consult an attorney as to whether this constitutes a possible grounds for a tidy class-action lawsuit -- first one to get the class recognized by the judge stands to get a nice payday that will make a $30 fee look like the peanuts it is.  In the meantime the loss of customers, goodwill, and accounts will likely encourage USBank to consider being a little more fair-minded when making changes to a written legal document.    Alternatively, USBank should stop bothering to sell CD's and just allow money market deposits, since consumers cannot count on USBank to live up to the terms stated in the APR.      

   

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Comment #61 by TJJackson posted on
TJJackson
Another article on this issue

http://www.interest.com/cd-rates/advice/u-s-bank-fee-hike-puts-cd-investors-on-notice/

 

one legal firm considering putting together a class action lawsuit

http://classactionblog.mdpcelaw.com/2011/06/articles/ira-fees/us-bank-announces-increased-fees/

 

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Comment #62 by 2StepsBack (anonymous) posted on
2StepsBack
Because the interest rate was so low this year, we earned only about $120 on our IRA.  Then US Bank "took back"$30 of it by imposing the maintenance fee.  But we're "between a rock and a hard place", pay the fee or be penalized for withdrawing the money.  Since I am retired, I don't intend to put more money into an IRA.  I am looking forward to being able to withdrawing the money I have already invested. 

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Comment #63 by Anonymous posted on
Anonymous
I just got hit with a similar thing at Citibank.  $50 annual fee on an IRA and $100 fee if I want to roll-over my IRA to a different institution.  This $100 fee sounds like extortion to me.  It is an attempt to "lock up" my money and to prevent me from seeking a better rate on my IRA account.  I have had  a 30 year relathionship with Citibank and now I am planning to close all my accounts and take my money elsewhere.  I always thought that a bank makes money on the "float" they get on our deposits.  Why do we have to pay additional fees?

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Comment #64 by Anonymous posted on
Anonymous
#63 The answer is GREED.

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Comment #65 by Anonymous posted on
Anonymous
Just for the record U.S. Bank right from the beginning has been waiving the early withdrawal fee to let you out without penalty.  They are just getting out of the deposit ira business due to cost of the extra paperwork etc. If you have Platinum package as well the annual fee is waived. You might want to check your facts before posting.

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Comment #66 by Anonymous posted on
Anonymous
I just found Citibank charged me $50 for my Roth IRA and Rollover account.  They started charging $50 quarterly from fourth quarter of last year and change to monthly charge this year.  Definitely I will get out of Citibank after being its customer for more than tweenty years.

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Comment #67 by Anonymous posted on
Anonymous
****tttibank

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Comment #68 by TJ Jackson (anonymous) posted on
TJ Jackson
It's good to see there is still commentary on this topic

The followup on my own situation is that US Bank agreed to waive the first year fee and so I have decided to let the money sit after that because I locked in a high enough rate (over 3%) on a hgh enough principal amount that even with the fee deducted, I end up ahead of putting the money elsewhere at current rates.  That said, all my other banking business has moved to a credit union; and when the US Bank CDs mature, my 30 year relationship with US Bank will end.

Charging fees for a CD - beyond ridiculous

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Comment #69 by Anonymous posted on
Anonymous
Every one  should take there money out of the banks. Mr. Davis just had his salary doubled to 18 million.

Us Bank would not negotiate with me. I am withdrawing my IRA and so are my friends.

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