By consumer advocate Andrea Woroch, andrea@kinoliinc.com.
Though regulators have pushed through a number of changes they
hoped would control banks’ fees and charges, financial institutions
are finding news ways to nick customers. By now, most Americans
know Bank of America recently announced plans to charge debit-card
users a $5 monthly fee beginning early next year. But they’re not
the only bank to do so.
So what other bank costs are out there, and how can you keep as
much of your money as possible? Consider the following nine fees
and what you can do about them.
1. Oh, the Non-humanity
The personal touch is disappearing as more banks offer accounts
requiring you transact business either through an ATM or online.
Want to speak to an actual human being? That’s going to cost you
extra.
What you can do: If the only human faces you see connected with
your bank are on billboards, it’s time to move on. You should
always know one bank representative by name who can help you out of
problems both big and small.
2. You Can’t Just Walk Away!
Close out your account within three-to-six months of opening it and
you could get socked with a $20 to $25 fee. Banks say the charge
covers the start-up cost of opening your account.
What you can do: There are many reasons to close-out an account,
including moving and dissatisfaction with a bank’s innumerable
fees. Try talking to a customer service representative first and
see if they won’t waive the charge, depending on your
circumstance.
3. Pay for the Pleasure of Debit Cards
Bank of America isn’t the only financial institution exploring the
debit card fee. According to an article on MSN Money, Wells Fargo
is testing a $3 monthly fee for debit card users in five states.
SunTrust hopped on the bandwagon and is charging some customers $5
a month, and JPMorgan is dipping its toe in the water by trying out
a $3 fee in Wisconsin.
What you can do: Regardless of changes in the banking industry,
cash is, and likely always will be, king. Consider withdrawing a
certain amount of cash each month for your primary purchases. If
you can’t part with your plastic, buy gift cards at a discount from
sites like GiftCardGranny.com and realize immediate savings with no
charge for swiping.
4. Hold Tight to Your Debit Cards
You’ll pay roughly $5 to replace a lost or stolen debit card, but
you’ll have to wait a few weeks for the plastic to come through. If
you’re in a hurry — and who isn’t? — there’s a $25 rush fee.
What you can do: Some banks offer cards created in-house, which
are faster but lose their magnetism easily. The three-digit
security number on the back of these temps also rubs off quickly.
You’re better off waiting for a permanent card, even though going
without can be a hassle.
5. Say Goodbye to Free Checking
Most of us haven’t paid for a checking account in years, while
enjoying such connected perks as debit-card rewards, free online
bill payment, and free check printing. Unfortunately, that’s all
about to change. HSBC North America began the trend by converting
to checking accounts carrying a fee of up to $15 for monthly
maintenance. Wells Fargo ditched freebies as of July 1, and Bank of
America is testing tiered checking accounts that will induce us to
increase our bank activity.
What you can do: You better shop around if you want to find free
checking these days. A locally owned credit union may be your best
bet.
6. Printed Statements are so Passé
Banks say online statements are a service to their customers, but
it’s actually saving them paper, postage and other attendant costs.
If you want a physical statement to contest an old payment, you’ll
pay $3 to $5, or about $1 for a regularly delivered monthly
statement.
What you can do: Going paperless has many advantages, but
luckily most people have access to a printer. Print out your
e-statements and see if those contesting the payment won’t accept
this as proof.
7. Check, Please
Remember when banks returned customers’ cancelled checks in a neat
package every month? Today, you’ll pay around $25 for one measly
check, based on the time a clerk spends “researching” that slip of
paper.
What you can do: You might print out the cancelled check from
your e-statement site, but not all debtors will accept this as
verifiable proof. This may be one of those instances when you’ll
just have to bite the bullet and pay the fee.
8. Walking on the High Wire
Wire transfers are a safe and secure way to switch money between
banks, but institutions like Chase will hit you with a $15 fee
before you can access the cash.
What you can do: Avoid this charge by using the right type of
account. If you plan on frequently wiring money, check for an
account that offers this service as a free benefit.
9. Cashing it In
Ever feel like your feeding a slot machine when pouring all your
change into a coin-counter? Perhaps that’s because your bank is
taking a cut from your cash. The standard fee is 5 percent of the
total amount converted.
What you can do: Don’t wait until you have bags and bags of
loose change before wrapping them in paper rolls. Instead, pick up
the empty paper coin tubes at your bank and wrap as you go.
