Wednesday, June 8, 2011 - 11:35 PM
In connection with the letters we received from U.S. Bank regarding the "maintenance fee" of $30 for our IRA accounts, I would like to direct interested readers to the U.S. Bank website at:
It sets out the monthly maintenance fees for CDs and Retirement Money Market Accounts as being $0 and this is as of 6/8/2011. Click on the buttons and it clearly says that there is no fee associated with those accounts. Only the Health Savings Account shows a maintenance fee of $2.50 per month, which is what we folks who have IRA CD accounts are being charged ($30 annually). Please print this out before they change it.
If neither the CD nor the retirement money market account (which requires more maintenance since people are contributing monthly), have any fees, why are we, who have an IRA CD which pays interest annually and which does not even provide statements, have a maintenance fee? This is clearly a bait and switch tactic where the website and the representative who opens your account tells you one thing, and then after you have opened the account, you are suddenly hit with a fee.
10 posts since
Aug 23, 2010
Rep Points: 292
1. Thursday, June 9, 2011 - 10:29 AM
Actually, that is common with IRAs. Many places that handle IRAs charge a fee for them. They are considered completely separate from other types of accounts. They do require different paperwork and reporting standards and oversight -- although my own opinion is that it isn't significant enough to call for a fee, but it often does anyway.
So, the terms of regular CDs have no application to the terms of IRA CDs.
That US Bank is charging a fee for handling IRAs is not so significant; that they are imposing it on existing CDs is VERY significant. People are locked into those CDs and suddenly find themselves hit with fees they never agreed to.
326 posts since
Jan 16, 2010
Rep Points: 2,143
2. Thursday, June 9, 2011 - 12:20 PM
13 posts since
Jun 1, 2011
Rep Points: 87