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Incredible Bank Makes It Easier To Avoid New Monthly Maintenance Fee

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Last month I reported on Incredible Bank’s new monthly maintenance fee for its checking account. Incredible Bank has emailed its customers regarding a change it has decided to make. The fee will still take effect in June, but they are making it easier to have this fee waived. In addition to maintaining a $300 checking account balance, customers can have this fee waived if they maintain an average collected balance that totals $5,000 for all of their deposit accounts. Below is an excerpt of the email that customers received (thanks to the DA reader who forwarded this to me):

Many of you asked if relationship pricing could be considered when placing fees on your IncredibleBank Checking account, which will now go in effect June 11th 2013 instead of June 1st. We are all about building a relationship with you, therefore we changed the requirements to the following:

* A maintenance fee of $15.00 may be charged if the average collected balance of the account falls below $300.00 during the statement cycle.
* The maintenance fee may be waived if the average collected balance of your total deposit accounts is $5,000 or more during the statement cycle.

What this means for you, is if you carry $5,000 or more throughout all of your IncredibleBank accounts (Money Market, CD, or Checking) the $15.00 fee may be waived.

As I mentioned when this fee was first announced, I was worried that this fee may hit several Incredible Bank customers who had moved their money from the checking account to Incredible Bank’s money market account for the higher rate. This latest fee change should prevent this from happening.

This new fee also highlights the potential problem of leaving old accounts opened. When accounts no longer have the top rates, it’s common for rate chasers to move most of their money to other banks. When accounts have no monthly fees or minimum balance requirements, it’s easy to just leave them opened with a small balance. If you don’t keep an eye on the accounts, you could be surprised by fees. Even if the bank doesn’t add a monthly maintenance fee, they may have an inactivity fee. So if you find you’re not paying attention to old accounts, it’s probably best to close them.

Update 5/14/13: Incredible Bank reduced its rates late Monday. The checking account rate fell from 0.81% to 0.71% and the money market rate fell from 0.96% to 0.91%.


  Tags: Incredible Bank, checking account

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Comments
20 Comments.
Comment #1 by Anonymous posted on
Anonymous
I don't let any bank hold hostage my money. I closed the account.

14
Comment #2 by Bancxman (anonymous) posted on
Bancxman
I thought Incredible Bank was being generous in setting the bar as low as $300 for checking accounts. These days, that's not a lot of money. If you can't manage that, you're not going to earn much interest anyway. The place for you is at a credit union that offers free or very low minimum balance checking.

7
Comment #3 by Anonymous posted on
Anonymous
i have a couple of small cds  along with a few shares of variuos stocks received as inheritance and hold the stock certificates i live  in a  apartment if these were stolen could i  take legal action against the apartment complex ? 

1
Comment #4 by Anonymous posted on
Anonymous
To #3, NO.

1
Comment #5 by Anonymous posted on
Anonymous
Bancxman, it is not the issue of how much, it is the issue of why.

I have 18 bank accounts and few CUs, now if they all want few hundred dollars each, multiply those amounts.

But that is not the whole issue, most of them will silently increase the minimum amount without even telling you and then it will be too late to act. Banks today are not what they used to be, they do not need more customers, they need more ignorant customers to make money out of them.

The whole notion that there is penalty is a turn off for me.

14
Comment #6 by Anonymous posted on
Anonymous
to 4 you forgot to mention rude customers as well  thanks for the info

1
Comment #7 by Bancxman (anonymous) posted on
Bancxman
Incredible Bank has excellent customer service. Accordingly, checking account holders will always receive notice by email of any significant changes to the terms of their checking account. it's pretty obvious that Incredible Bank (and many other banks) do not have any interest in footing the bill for maintaining penny ante accounts. Besides, $300 is peanuts. If paying fees offends you on ideological grounds, consider that banks don't print the money they hold. It amazes me that people will routinely pay fees for services provided by any number of companies, yet expect banks to provide them for free. If you believe that banking was better in the good old days, consider that back then interest checking was prohibited and interest rates were fixed by law. So, if you're still adamant about not paying checking account fees,  you're free to look elsewhere. Incredible Bank and banks with similar philosophies are not charities. They'll be happy to hold your money. But, to avoid paying account fees, you better have enough money on deposit to make it worth their while.

6
Comment #8 by Anonymous posted on
Anonymous
To Bancxman (anonymous) - #7,

It sounds like you work for the bank, stop your nonsense postings.

I had very bad customer experience with Incredible Bank, they made me dispute fraudulent charges with certified mail and treated me like I was the criminal.

8
Comment #9 by Bancxman (anonymous) posted on
Bancxman
#8 Congrats! You've outed me. I'm an enforcer hired by banks to deal with depositors who criticise them online. You'll have to admit though that it's hard to sympathize with someone who claims to have enough money to fund accounts in 18 seperate banks yet feels slighted when one of them demands that he/she keep a mere $300 on deposit to avoid a paltry account fee.

BYW, I'm reserving judgment about your tale of woe concerning Incredible Bank. Anyone who sasses me the way you did probably isn't telling the whole story. Sorry, but banks commonly require customers to dispute charges by certified mail.

4
Comment #10 by O-Qua Tangin Wann (anonymous) posted on
O-Qua Tangin Wann
Incredible Bank lowered their rates yet again. Checking 0.71%. Money Market 0.91%.

~O-Qua Tangin Wann

3
Comment #12 by Anonymous posted on
Anonymous
The Incredible bank is fading away, I will not comply to their new minimum balance, closing the account today.


To Bancxman, what is your Problem?  I have solved errors and fraudulent charges with other banks, just by calling or e-mailing the dispute. Incredible banks wants notarized and or certified copies of documents and letters and the whole process took a month to resolve it. Never again will open an account with them.

7
Comment #14 by Bancxman (anonymous) posted on
Bancxman
#12  It's inappropriate to ask me what my "problem" is. One of the difficulties in posting comments on this blog is that too many persons insist on getting personal whenever they read something they disagree with. Furthermore,  I've never heard of anyone filing a fraudulent charge claim with a bank by email or phone. The banks typically want notarized affidavits of loss and other supporting information that needs to be verified. Sending that information by certified mail is evidence that the claim was filed. None of that can be accomplished through an email or phone call. So, I'm sorry, but it seems to me that Incredible Bank was acting no differently than any other bank would.

4
Comment #13 by onyspizza posted on
onyspizza
yea BM whats the dealio?

2
Comment #15 by Anonymous posted on
Anonymous
To Bancxman (anonymous) - #14, I just disputed few charges over the phone with Coulee bank. No mail involved. Also, Huntington Bank and many others can solve the problem by calling or e-mail only. All was rectified in 1-2 days and they treated me as victim and not as a criminal.

Incredible bank is doing it backwards, treating the customers as being criminals.
Other posters said you have some problem defending Incredible bank and I lean to believe those accusations being true.

Minimum balance introduced by Incredible bank will destroy their business model.

6
Comment #16 by onyspizza posted on
onyspizza
i just have such a problem with the name of that bank surprised there has not been a racial uproar for to me it is a ethinic slur

1
Comment #17 by Anonymous posted on
Anonymous
Seems like you all are talking about different things.  Bancxman's points about the bank's taking this measure to focus on discouraging the accounts that are presumably costing it money are pretty hard to argue with, right?  Whether that ends up biting them in the long run or not is yet to be seen (obviously their management believes it won't), but it's hard to call such a move by a for-profit institution unjust or immoral (not saying anyone is calling it that exactly) when they have given customers fair warning in advance (which others often do not, as the other poster said).  

Now if IB is making it difficult to dispute charges and perform other tasks that are core to the banking experience of many customers, as the other poster said, that is an entirely different customer service issue and one that would seem to be likely to hurt them over time, if that is experienced by many other customers.    

All in all, it will be interesting to see if we reach the day when we're literally (not just effectively) paying banks to hold our deposits, as it appears some of Europe could be heading towards.  Hopefully the latest reports on the Fed's drawing up plans for QE termination and ultimate rate hikes aren't just pie in the sky....

2
Comment #18 by Anonymous posted on
Anonymous
Anonymous - #17, you sound like Bancxman.

Incredible bank will loose lots of old customers and there is nothing they can do to hold them back.

Their CSR are aggressive and rude and the bank's policies are outdated.

4
Comment #21 by Anonymous posted on
Anonymous
#18,  as i said pretty clearly in my previous post, if their customer service is well below par as you're claiming, i trust they'll suffer the loss of profitable customers, just as you said.  Losing the non-profitable ones due to the new policy probably isn't scaring them as much (rightly or wrongly).  

1
Comment #19 by Bancxman (anonymous) posted on
Bancxman
# 18 Here's what you'd have learned if you had read the IB account application:

CLAIM OF LOSS -

If you claim a credit or refund because of a forgery, alteration, or any other unauthorized withdrawal, you agree to cooperate with us in the investigation of the loss, including giving us an affidavit containing whatever reasonable information we require concerning your account, the transaction, and the circumstances surrounding the loss. You will notify law enforcement authorities of any criminal act related to the claim of lost, missing, or stolen checks or unauthorized withdrawals. We will have a reasonable period of time to investigate the facts and circumstances surrounding any claim of loss. Unless we have acted in bad faith, we will not be liable for special or consequential damages, including loss of profits or opportunity, or for attorneys’ fees incurred by you.  

In other words, they told you in advance what to expect. Both "affidavit" and "reasonable period of time to investigate" are clearly stipulated. So, if you don't like it, why did you open the account? As I said before, there's nothing out of the ordinary going on here.

1
Comment #22 by Anonymous posted on
Anonymous
Bancxman (anonymous) - #19,
Why bit around the bush, admit the Incredible Banks does not like to take any loss from any fraudulent transactions and they make you to be the assumed criminal, unless proven otherwise.

They made me go to the police and file a victim statement, but police chased me out saying this is a civil matter and Incredible Bank has no right to require such statements by proxy.

You can not file police loss statement until the bank refuses in writing that will not pay you the losses, so we come back to the beginning, Incredible said we will investigate but we need the police statement to continue, since I can not give them the police report, they think I’m not serious about the loss and refused to pay.

They drag me for a month, then I hired an attorney, and all was solved in 3 days, Incredible apologized and pay my losses, but my attorney cost took it all back and than some.

Incredible Bank is the fraud when it comes to solve a fraudulent transactions.
Stay away from such loss policy, it is a good chance, they will commit the fraud and than pretend that the fraud is solved on their goodness and pity for you. I stopped trusting them long time ago.

Be advised, the fraud policy is made to protect them and not you.

2