| Author | Message | ||
     Fahren |
Banks. The end of free checking, for many consumers, especially the ones who don't keep enough money in their accounts: http://www.businessinsider.com/free-checking-accou nts-2011-2 Time to shop around. Credit Unions, anyone? I guess only those who are outraged enough by banks and their fees charged to their customers will show their anger by closing their accounts and doing business elsewhere. Whether or not I keep enough minimum balance, or whatever other arbitrary rules they come up with, it's offensive to me, on principle. I try to stay local, but if the local banks also try this, I will make the effort to find a Credit Union. | ||
| Xl1200r |
Credit Unions are pretty big around here, I've been meaning to move my checking account to my credit union, it's just a lot of moving parts since I have so much in direct deposits and withdrawls, I need to wait until I have a balance in both to cover my expenses for any overlap period. | ||
| Andymnelson |
I don't really see an issue with it- it costs them money to shuffle my money around. We have 2 credit cards (that we pay off every month!), and interest bearing checking account, savings account, and a line of credit (also paid off!) with Wells Fargo. My checking is free- presumably because they will make enough money off of my credit cards and line of credit. Those who carry a couple $$ balance in their checking account (so the banks don't make any interest money) and have no other accounts are really just asking the banks to handle their money for free, which they should not do. | ||
| Fahren |
That's one of those cool things about the U.S.A.: if the system works for you, fine. If you are bothered about it, you can "vote with your wallet." or feet. or whatever. That is, until the banks all realize that enough people are willing to bear those fees, and then all the banks will start charging them, and we will no longer have the choice. Having thrown out this minor rant/post, I now realize I have to be on the road, traveling for a bit, so I may not be able to check back in too much. Oops. :-) | ||
| Cataract2 |
Bah, I'm done with getting loans. I have $200 remaining on my truck and that's it. I'm done. It's amazing. After paying off my bike I noticed my account began to rise slowly. With the truck being done I expect it to rise nicely. All that will remain is my wife's student loans and CC she had before we were married. Once that's done we are going to aim to live without debt. | ||
| Andymnelson |
Well excellent, then my posts will have the last word!  Juuust kidding. I agree with what you are saying tho- the system works for me, I don't pay fees. If it does not work for you, then yes, you should walk. I will say this: for the first time in my life I have a personal banker that handles my accounts and that is the best thing EVER! We are with Wells Fargo and when I transferred everything over I did so with a very helpful gentleman that now knows me and my wife and our accounts. He makes sure to handle issues promptly, he reviews our accounts on occasion to make sure that we are in the most profitable position, and I have his email address for whenever I have an issue or question. It is SO GREAT to be able to fire off a quick email and have something taken care of, rather than jumping through hoops. For the first time in my life, I feel like I have someone on my side at the bank- it honestly has changed banking for us! | ||
| Buellish |
I have been with a bank for 16 years that has merged 3 times.It started as a small local bank,but now thats a thing of the past. And with the personel shifts,well forget having a personal banker.They don't even have loan approval locally. | ||
| Sifo |
I don't see a big issue with it. A bank is a private business that needs profit to survive. If I don't like my current bank for any reason, I'm free to shop for one that fits my needs better. | ||
| Macbuell |
Free checking is going away because Government decided to take away a huge revenue stream for backs, overdraft fees. Overdraft Fees is basically what allowed you to have a free checking out. Those people that overdraft their accounts basically paying for your free account. Everyone in the financial services industry knew this would happen and it is just another example of what happens when Washington gets involved with business operations without thought to the consequences. Did people really think the Banks would give up Billions in revenue without trying to determine how to get that revenue back? Especially when you are talking about public banks where the only real consideration is earnings per share. | ||
| Macbuell |
By the way, your bank account isn't free for the Bank. There is a fee charged to the bank for every ATM Withdrawal or Inquiry you do unless they own that ATM. They pay fees to the Networks for your PIN and signature transactions. They pay for printing and mailing statements, etc, etc. They typically cover those fees from four revenue streams, the interchange revenue received from Visa or the PIN Networks when you purchase something, Overdraft Fees, Transaction Fees, or Monthly Maintenance Fees. Government took away much of the Overdraft Fee so they are looking to make up that shortfall either through Trans Fees or Monthly Fees because they don't control the Interchange Fees. | ||
| Blake |
No overdraft fee allowed? Per the federal gov't? What? Yet another unconstitutional law? And for the benefit of who? The general welfare? I think not. I think the exact opposite, benefitting deadbeats. | ||
| Macbuell |
There were some predatory NSF programs that probably needed to be curtailed. Like sorting transactions by highest dollar to lowest to make you go negative and then charging a fee per negative transaction. But everyone knew that they would look to make up the revenue some way some how and most industry experts said right when the legislation passed that eventually free checking would be a thing of the past. | ||
| Blake |
Whoa. Hold on. This is about credit card fees. I don't see a problem. The credit card business is despicable. They have not only been charging exorbitant interest, but also late payment fees. It was usury, outrageous. Some folks missed a payment, interest rate would be jacked up to 30%, AND they'd be hit with a $39 late fee, all while the outstanding balance continued to accrue compounded interest. That indeed threatens the general welfare. Too many young foolish people got sucked into massive inescapable debt. It truly was criminal practice in all but letter of the law, usury. | ||
| Macbuell |
I think the article jumps to the wrong conclusion. I am pretty sure the OD Legislation was a bigger hit to the bottom line than the credit card legislation. | ||
| Sayitaintso |
You hit the nail on the head Blake. I'm all for free enterprise but usury laws are a good thing imo. The financial system has become so complicated its hard for even trained professionals to always keep things straight. | ||
| Swampy |
I am with a credit union and the free checking account is BARE BONES! With a free checking account you are charged ATM fees by your own credit union even though you might be using a competing credit unions' ATM with out the competing credit union charging any fees. Of course if you get a checking plus account it is free ATM withdrawls from competing credit unions ATMs. The plus account requires you make a cretain amount of automatic payments and stuff like that. I only needed a straight checking account because I only use the checking account for one thing....paying my happy tax once a month. So don't look for much relief from credit unions any more... And yes, I do expect the moon.... | ||
| Skinstains |
I can't believe that anyone thinks that the banks need to make more money ! They are swimming in cash that they squeeze out of "Joe the plumber". | ||
| Blake |
More like Rube the idiot. Still, it ain't right. Usury is a crime and needs to be made so officially. Anything above 10% over prime is greedy and harmful to the general welfare. The earn 3% on each purchase to boot. | ||
| Skinstains |
Where I'm from all the houses are owned by banks. People shuffle around so much that the rediculous (aught to be criminal)"interest to balance" ratio of their mortgages is always well into the banks favor. If every banker was rounded up and hung from their balls 'till they ripped off and they bled out beneath their severed sacks it would be a better world. | ||
| Sifo |
I can't believe that anyone thinks that the banks need to make more money ! If that is a response to my saying they need to make money, note that I didn't say they need to make more money. It's up to them to balance how much they can be made with providing incentives for customers to come through the front door. No different than any other business. Just like any business, they respond to new regulations, etc. by changing their product lines. Banks have to file financial statements that you can view if you wish. This would allow you to choose your bank based on finding one that is not being profitable. That doesn't seem like a winning strategy to me though. Where I'm from all the houses are owned by banks. People shuffle around so much that the rediculous (aught to be criminal)"interest to balance" ratio of their mortgages is always well into the banks favor. If every banker was rounded up and hung from their balls 'till they ripped off and they bled out beneath their severed sacks it would be a better world. I really don't understand the disdain for banks here. They are providing money so that people can buy things. Nobody is forcing them to borrow money. Home loans are currently under 5%. That's damn cheap money! We just bought a new car with 3.9% financing. Again, damn cheap money. A few years ago we got an interest only loan for our new house (something I wouldn't recommend for most people BTW) that was 1.5% for 6 months then bumped up to 2.9%. Damn cheap money. But it's up to me if I decide to borrow money. I'm glad the bank is there when I want to borrow money. | ||
| Skinstains |
Under 5% sure but 99.9% of your first payment is interest! It's legal loansharking! I already regret posting to this thread. I try to stick to motorcycles when I log-in. I will try harder... | ||
| Skinstains |
Let's charge the people with the least the most ? WTF ??? I'm out for real this time... | ||
| Sifo |
Let's charge the people with the least the most ? WTF ??? It's banking, not welfare. | ||
| Just_ziptab |
My ATM withdrawals used to be free,no matter where I was. Suddenly,there was an out of town charge of 50 cents for every withdrawal.......so then I used only my local ATM for free. Suddenly again,there was a new local charge and it quickly went up to $2.00 for every withdrawal.So now I am stuck with making huge withdrawals "once in a while" to save on those fees.That costs me money since I have a big pocket full and waste it on occasion.Used to get replacement cards for free when they went bad. Now it's 20 bucks for a replacement if they go lame. Everybody wants to be a millionaire at my expense .........Earn it,don't just take it  | ||
| Pwnzor |
I've been with the same credit union since my dad got me an account when I was seven years old. Got screwed around by a couple of the big banks during my lifetime, but always had that one account since I was a kid. It is now the only bank account I have, and is the only one I will ever have. The credit union has changed names three times, and my account number is a nonstandard format to what the new institution uses, so every teller gets a bit confused when they look it up. And, grandfathered in, is my "Better Than Free" checking account. That one always raises their eyebrows a bit, since the new rule is you must have a direct deposit to have any type of free account... but not me... If they impose any of those rules on me I will go completely online with ING Direct or send my checks to PayPal. In either case, I don't carry much balance in savings or checking... since I fully expect the collapse of the financial system in this country could happen at any time. For a short while, at least, the paper currency will still carry a little bit of weight before I have to go to my backup system of bartering bullets for my needs. |
