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Sunday, May 22, 2011 - 1:03 PM
(1 stars)
US Bank Fees Increase 300% For Small Retirement Accounts
US Bank N.A. (1 stars)Per the letter recieved dated 5/10/2011:
"A US Bank IRA continues to be a great way for you to save for your retirement. The annual fee for your IRA plan is increasing from $10 to $30. The balance requirement to waive this fee is also increasing from $5,000 to $25,000 for IRA plans and from $1,000 to $5,000 for Coverdell Education Savings accounts (CESA). In the past, your fee may have been waived automatically if you were over age 70 1/2 and receiving automatic distributions from your IRA plan. This automatic waiver will no longer be applied."
With the low interest rates being offered some folks may actually be losing principle to these fees now. This is a very unethical action of this large bank and will affect many account holders. It shows how a bank can take advantage of loopholes to literally take small investors funds who trusted that their IRA CD was securely invested to grow at a advertised interest rate.
Either this bank has become greedy and is willing to sacrifice ethics to its small account customers, or it has some major financial problems that it is desperately trying to remedy.
Here are some actions that all of us can do to try and stop this and similar actions of these institutions:
- Spread the word to other savers through social media, word of mouth, AARP or other media.
- Sell the stock of unethical institutions like this.
- Withdraw any accounts that you can afford to do so (withdrawl penalties may be assessed).
- Contact your congressman to show this as an example of why tighter bank regulation is needed.
"A US Bank IRA continues to be a great way for you to save for your retirement. The annual fee for your IRA plan is increasing from $10 to $30. The balance requirement to waive this fee is also increasing from $5,000 to $25,000 for IRA plans and from $1,000 to $5,000 for Coverdell Education Savings accounts (CESA). In the past, your fee may have been waived automatically if you were over age 70 1/2 and receiving automatic distributions from your IRA plan. This automatic waiver will no longer be applied."
With the low interest rates being offered some folks may actually be losing principle to these fees now. This is a very unethical action of this large bank and will affect many account holders. It shows how a bank can take advantage of loopholes to literally take small investors funds who trusted that their IRA CD was securely invested to grow at a advertised interest rate.
Either this bank has become greedy and is willing to sacrifice ethics to its small account customers, or it has some major financial problems that it is desperately trying to remedy.
Here are some actions that all of us can do to try and stop this and similar actions of these institutions:
- Spread the word to other savers through social media, word of mouth, AARP or other media.
- Sell the stock of unethical institutions like this.
- Withdraw any accounts that you can afford to do so (withdrawl penalties may be assessed).
- Contact your congressman to show this as an example of why tighter bank regulation is needed.
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