A $5 fee for using your own bank debit card?

[Stealth3si]

This may not be a concern or issue for many folks (i.e., don't use/need debit card, fee is simply insignificant for whatever reason, ability to 'offset' the fee, life is too good to worry about this, you're rich, etc) but I guess the days of customer  service-oriented services are long gone with the big banks. Funny how  the banks needed the government to bail 'em out with tax payer money. Now we can't access our own money that we trust them to hold and guard  without paying for it. I can understand the term "purchasing" an account by  opening it and making an initial deposit to get it going. What I  don't understand is the reason we have to "buy" our own money that is already ours. But I suppose that's just the way things are in life and the big guys gotta make a profit somewhere too. Unfortunately  they're doing this at the expense of their customers' ability to access  their own already-owned money.

This is supposedly in response to new banking regulation prohibiting certain other fees. Basically, I wouldn't be surprised if more banks jump on the wagon.

BoA and SunTrust have already implemented this. And the BoA fees begin October 1 but fees start rolling out early 2012. SunTrust began on June for new comers and November 1 for existing members.

Chase and Wells Fargo don't exactly charge $5 but are testing a similar plan at $3.

Citi won't do this but like most big banks they do typically charge fees for monthly balances below $1500.

If you're shopping for 'fee-free' banks to avoid general fees then scrutinizing their fees is advisable.

^^^
That's why I'm with USAA!

So what's your bank?

And do you use a debit card?

How do you feel about being nickel and dimed for everything?

Would you consider moving to a local bank or credit union, which apparently seems to be the way to go now.

(Here is a webpage on general advice on how to avoid 'fee banks.')

In light of this, I Googled for some 'fee-free' banks and a few came up: ING, M&T, & Ally.

There are however a fees charged for certain services, like M&T charges a $3 fee for bank-to-bank xfers!

Moreover, Ally IIRC requires good credit!

As for ING, AFAICT there are no fees (that would be an issue for me) and they offer interest for our earned money!

Check 'em out if anyone's interested.

[mh874892]

I first heard about the $5 fee for Bank of America last week. Luckily I do my banking with a small local bank, so this does not apply to me (yet). I do use a debit card quite often, but I recently moved and lots of places in this tiny town only take cash, so even that has been limited. Like you, I am afraid that most, if not all, banks will turn to this type of ridiculousness. I really do not see how it is fair to charge someone to access what is there's to begin with. I can only see this chasing customers away from using banks, or even starting bank runs. Hopefully I am wrong, because this economy sure does not need that!

[Abrupt]

This is because of the Durbin amendment which came from the Dodd-Frank act.  Basically this limits the amount of money that banks have previously made off of merchant from customers using debit cards.  The reasoning behind this amendment was that with the reduction in this fee, the retailers would lower or hold down the costs of their merchandise, and not take advantage of the discount (yeah right, who honestly could believe that would happen).  The legislators never even considered who would make up the loss of revenue to the banks that is basically necessary to be able to provide such a service in the first place.

This is exactly what happens when the government over-regulates.  It is also a perfect example of why taxing or over-regulating the top never actually affects the top but is instead passed down to the consumer.  Banks have responsibilities to make a profit in order to provide the interests they do and to cover the loses that come with such ventures.  They also have legitimate reasons to earn a profit to cover their expenses.  We have the choice not to do business with them, and if we do so in such number then they must make adjustments or vanish by the wayside. 

[gramev64]

I think that that is terrible to have to pay such a huge fee for accessing your own money. I know some companies when you pay with a credit or debit card they charge you too!  I don't get it!

[dreamyxo]

I have M&T for my primary checking account but I also have accounts at a credit union and use several online banks.  I rarely use my debit card any more but if they start charging fees I definitely won't be using it.  Right now I have free checking but if they start changing I will definitely switch and use my online banks more.  

[blondie71]

My bank doesn't charge a fee for taking out money from an ATM unless it is not there ATM than I believe it is $1.50 but I don't usually do that anyways.  One bank that I bank at doesn't even charge me a monthly fee but the other bank that my husbands checks goes in charges $6.50 a month unless you have direct deposit than they take $2 off but they only have branches in a few places they are not a big bank like what is mentioned here.

[rondrond]

My credit union doesn't charge a fee unless it isn't an 'approved' ATM machine...and they give a list of approved sites...


If they ever did charge a fee I would stop using it...which would be terrible as I use it everywhere I go...

I actually had to write a check the other day and it took forever as I had almost forgotten how...

I would just use a credit card and pay it off at the ind of the month, which is almost the same thing as using a debit card...

[laine39]

How ridiculous is this! I heard that Bank of America is going to start charging $5 per month for use of your debit....not my bank, but I am wondering if they all will start. I use a debit for everything, especially bill paying. Why are we being charged to use our own money? It's insane!

[sherryinutah]

Sounds like a good reason to change financial institutions.  I'm not dealing with that issue with my debit card and if
I was I would definitely make a change...partly...to give a loud and clear message.  There are a lot of different options
out there!

 

Later...
Sherry

[mawhite63]

Simply refuse to stand for it and switch your money out. I use a small local bank that not only gives me free checking, if I get dinged with an ATM fee, they'll reimburse me up to five transactions per month.

[natashaspy]

i use a small local bank too, get free banking because i went paperless on my monthly statements and no debit card fees.  i would definitely have to change if they started charging for the debit card as i use it to pay for everythingggggggg.  i never seem to have cash on me, and writing checks has just become too time consuming!

[lgemini]

I think that it just might be better to do what my grandmother did.  That is to hide your money under your mattress.   

[gazikas]

Not at my bank yet, but usually something like this becomes the trend.   What frustrates me is the banks did all of these promotions to get  you to use your "debit" card.  Contests, bonuses, etc.  They did all kinds of things to encourage the use of the debit card.  Does anyone else remember this?  Did your bank do promotions?  NOW that I use the debit card for most of my purchases.  I don't have to carry cash but I am not running up debt.  I use it for just about everything.  AND NOW they want to start charging? hmmmmm It makes me feel like I have been played.

[heartofphila]

Might have to not use a bank and start paying our bills with cash just to save money.  It is rediculous!!

[rondrond]

Might have to not use a bank and start paying our bills with cash just to save money.  It is rediculous!!

   I was a vendor and always had a lot of cash on hand. I did the mattress thing for awhile and had quite an accumulation of ones....
I quickly found out that the younger generation does not know how to handle or count money very well...like it is some kind of foreign artifact...

I'd be paying with ones at Walmart and the cashier is counting...

one..two...three...four....five....six.........seeven....

the line would get longer and longer and people were losing their temper......at me...

One time I counted the money out to them...

onetwothreefourfivesix seven....up to fifty and she picked it up and recounted it...one.......two........three.......four.........