Wednesday, July 6, 2011 - 7:53 AM

Key Bank Service Fee

(1 stars)

In June 2011, Key Bank began charging a $5 service fee for accounts that do not make at least 5 transactions per month. I was not aware of this change as it was posted in small print on their statement and I do not read that. I maintained two accts at their bank for many years- one main checking acct for all my business where I kept an average balance of $3,000 and a second POA acct for my daughter. The one for my daughter was hardly used. In June, I saw that I was charged a $5 fee on that acct. I called the bank to inquire and I asked that they waive the fee as I was unaware of the change and I was a good customer for so many years. I spoke to a number of customer service people, including a manager and they refused to waive the fee.

I have never experienced such poor customer service at any other bank or institution. I do not recommend doing business with them.

bapter1 posts since
Jul 6, 2011
Rep Points: 10

1. Thursday, July 7, 2011 - 8:16 PM

I have two accounts with a Key Bank affiliate (KeyDirect), and I received the same notice. As I recall, the fee is waived if your aggregate accounts with Key (or KeyDirect) are above a certain amount. Given the relatively low rates Key/KeyDirect currently offer(s), you might not wish to increase your aggregate. I agree these fees are ridiculous (why, pray tell, does a bank have an "inactivity fee" for a garden-variety savings account, especially if you have a paperless option?). However, they are what they are. Shop around for a credit union if you are displeased (clearly you are).

I am happy with my KeyDirect 10 year CD, which has another 6 1/2 years to run. Issued before the bottom fell out, it yields 5.75% APY. I bet they wish it were callable. It's not. I just hope Key doesn't turn turtle, since I doubt any sane banker would assume my rate and term.

Bozo

Bozo60 posts since
Feb 14, 2011
Rep Points: 422

2. Friday, July 8, 2011 - 5:07 PM

Bozo, I remember when you informed us on this forum that you had purchased this CD. At the time, I bought their 5 year CD at 5.5%. I remember saying to myself that I would never go out ten years. Since then I have done it with the 10 year Penfed CD. Yes, in hindsight, you made a very good decision - I wish I had the foresight at the time to have taken the ten year plunge, although I would be very reluctant to go out this far at today's yields.

lou196 posts since
Aug 3, 2010
Rep Points: 1,171