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Bank depositors are being hit with a double whammy. First, deposit rates are at record lows, and with the recent mid-2013 pledge by the Fed, rates will likely continue to fall. Second, with weak loan demand and new regulations, banks are looking for new ways to increase revenue. This New York Times article mentioned a new type of fee that we may soon see:
Even as they cut payrolls, banks are exploring ways to generate revenue that could translate to higher costs for consumers. Among the possibilities are new fees for automatic deductions from checking accounts that pay utility and cable bills, according to people involved in the discussions.
The article also mentioned the new monthly fees at some banks when you use your debit card. I reviewed some of these banks in a previous post. SunTrust Bank will add a $5 monthly fee on its Everyday Checking Account when the customer makes a debit card purchase. Regions Bank's LifeGreen Checking has a $4 monthly fee when the customer makes a debit card purchase.
In addition to these new types of fees, banks are making it more difficult to avoid monthly fees. This may hit many savers who opened checking accounts to qualify for special CD rates. The latest example of this is at Regions Bank. The reader cumulus posted in this forum thread about Regions Bank fee changes that are scheduled to take effect on October 1st. Those who have Regions checking accounts should review these changes to make sure they don't get hit with a $18 monthly fee.
It's not just checking accounts that are being hit with new fees. U.S. Bank raised the annual fee on its IRAs from $10 to $30, and the minimum IRA balance to have this fee waived went up from $5,000 to $25,000.
One thing that can help you avoid missing the fee changes is our new bank alerts feature. In addition to notifying you when there's a rate change at your bank, it can also send you an email when there's a new blog post or forum thread about your bank. So if we mention a new fee, you'll be notified.
The bottom line is this country could easily get by with 20-40% fewer banks. All that brick & motor & payroll could be saved.
So many people just dont get it that they dont need a local bank.
A $7 fee started sept 12. Which they would waive if I maintained a $1500 minimum balance
Did a direct deposit of $500 per month.
Or they offered to discount the $7 fee by $2 if I agreed to online statements.
Closed the account just now. It was one I opened for a $25-50 bonus a few years ago.
Formerly Southtrust, then wachovia, then wells fargo.
I recently closed a bank account because they started charging monthly fees. The teller said to me very matter of factly, "We've been hit by the regulations and have to make it up in other areas." Like it is out of the realm of possibility that they should scale back instead--perhaps cut their CEOs' outrageous pay for starters?
It is so sweet of you to defend the banks. They need all the help they can get.
The attitude that one should blame liberals, and banks should get to do what they want is just plain ignorant. Get some education before ranting. Banks have received all sorts of benefits from the government mainly because they have enough money to lobby for it, and their large size gives them all sorts of power. When their executives are making millions, they have other options. Fees are understandable and necessary...confusing, everchanging, and irrelevant ones are just ways to scam those that have not had the education in life to know how to work the system...generally those already struggling.
Wake up. Banks have done very evil things knowing that they were wrong... all to make profit. They (the big ones) have no moral conscience.
Banks are bullies, and you are a bully worshipper trying to find a scapegoat.
Banks lost the right to do business the way they wanted when they had to come crying to us to bail them out. You can try and demonize liberals, and call them marxists, but I'm proud that I protect the common people, while you seem to want to protect a big bank that doesn't give a **** about you.
For those of you who are defending the banks, and calling critics "liberals" and "Marxists", get a grip! Leaving these big banks because of their excessive executive pay, excessive fees upon customer, and because they are leeches upon society, now being propped up by Federal Reserve welfare payments is a most capitalistic thing to do. To hell with the big casino banks, who destroyed the world economy with liar's loans, robot foreclosure signers, and useless derivatives! That means JPM, GS, MS, BAC, Regions Bank, et. al. If they want to do bad business, they deserve to lose customers. Onerous checking account fees are not needed by banks who do not try to be gambling casinos.
The wisest people on this site will abandon all banks, and buy gold and platinum, because the US dollar is doomed, as a result of the placement of incompetents (read "Ben Bernanke and the other members of the FOMC") in the top economic positions in our nation, the tripling of our monetary base, and the unlimited potential for money printing. As soon as an even tepid recovery begins, for example, we are going to see triple digit inflation rates, and savers will be wiped out.
So, keep your money in demand deposits (never long-term CDs or bonds!), and be ready to buy precious metals as and when they dip in price. The US dollar is on the way to becoming worthless in buying power value, even though its comparative value with other equally worthless currencies such as Pound, Euro, yen, etc. will stay very similar to what it currently is.
You dont have to do business with anyone you dont want to.
To me, banks business models need tweaking bigtime. Many of them were chomping at the bid to lend to any bad risk a few years ago.
My ONLY business with a bank is for a safe deposit box. Wonder if my credit union has them ?
As of Oct 1, a $4/mo fee is being tacked on regardless of balance.
This reduces effective yield, but still better than most.
However, if the rate dops will have to change custodians ASAP-
Bank Fees OUT OF CONTROL[/H3] What the bank and the media fail to tell the consumer, is that the bank is ALREADY COLLECTING A FEE FOR YOU USING YOUR CARD - WHETHER IT IS A CREDIT OR DEBIT CARD!!!! The charge the recipent of the funds a 3 to 5% fee for even accepting electronic card transactions!!!! American Express being the highest! Most consumers don't EVEN REALIZE that as soon as you pay with a card, the company collecting the money (FOR EXAMPLE - CHASE PAYMENTECH, QUICKBOOKS, ETC) for the service provider / retailer charges the retailer for the transaction!
SO IN REALITY, THE BANKS ARE BILLING BOTH PARTIES!
WHAT A RACKET!
I opened a business checking account with my local credit union which is actually free and has no minimum balance requirements.
I miss the days when banks actually had to use your money wisely to make a profit.