Bank of America: $60 per year just to use their debit card.

[ccgirl]

I just got on with no problem to online banking. However, some of the rest of their site is still down.

Thanks! I just got on but did have some "problems". You have to click, "continue to online banking" twice before you actually get connected to that page.

 

[LilyWDW]

Thanks! I just got on but did have some "problems". You have to click, "continue to online banking" twice before you actually get connected to that page.

True... but it got me there!

I will be one of the ones switching my account here soon (currently researching credit unions in my area) as will my mother. It's not that the fee is huge or that I don't understand it... it's simply that I don't want to pay it. We have a few great local credit unions that I can join because I am a student and/or live in this area so it simply makes sense to go to one of them. I had been thinking of doing so anyway but this is sort of the thing that "broke the camel's back". Know what I mean?

 

[goodeats]

The news said there would be no charge on certain "premium" accounts. I wonder what that means. Can you even get a checking account *without* a debit card anymore? We never use our debit cards, but our ATM cards have the visa symbol on them so I guess they are really debit cards.

We've been using a credit union for the past several years and it's great! We're not even local to the actual credit union, but we can do all our 'in person' banking at a local credit union that is part of the same network.

 

[dhardawa]

I'm with PNC right now and, so far, no fees. They have some special checking for the large local businesses too and I can't imagine they will change that anytime soon. But, if they do, I'll pull my money out. I won't pay fees for a checking account and there will always be someone who offers free checking somewhere.

 

[Cruise]

instead of paying with a debit card and risking that an error of some sort will cause my account to become overdrawn, I will continue (as I have done for YEARS) to pay for all my purchases with a CREDIT CARD, then pay off the balance each and every month as soon as the bill comes in the mail. There's no monthly fee for that, and I haven't paid the credit card company a penny in interest in years and years.

I don't even HAVE a debit card. When the bank sent me one, I brought it in and told them I don't want it. Instead they gave me a regular ATM card which I use to withdraw cash at the branch (no charge for that, even if it was a Bank of America atm card, and that's going to remain true even with the new charges according to what I heard on the news yesterday).

This is the ABSOLUTE smartest way to handle your money transactions. A credit card offers more protection than a debit card. If fraud occurs with your debit card the bank will refund the amount in question. But it will NOT refund bounced check charges or other fees you may be charged by THOSE to whom you wrote out checks or who receive direct debit payments from your account. Wake up people!!!! Change your debit cards to "ATM only" cards and start using your credit cards instead!!!

This and this.

I just recently moved and went back to using a credit union that I've had a small account with for years. I've now made it my primary bank. The one downside is that their ATM card is automatically a debit card. So I refused to get it. I don't care that there's no charge to use it as a debit card. I can use my credit card the exact same way and have more protection doing so. And I never pay interest either.

I refused to get the combination ATM/debit card because, while I am technically protected if someone gets my card and uses it for thousands of dollars in transactions, I don't want to deal with the hassle of having to chase down getting that balance back into my account and the days, or possibly weeks, of delay it takes to do so. With the credit card, as soon as I dispute a charge (though I've never had to do so), it's in limbo until resolved and I don't have to pay a penny for it.

What's ironic is this decision to combine the ATM and debit card means that my business actually costs them more money because I end up going to the counter to do transactions.

 

[SuzanneSLO]

This and this.

I just recently moved and went back to using a credit union that I've had a small account with for years. I've now made it my primary bank. The one downside is that their ATM card is automatically a debit card. So I refused to get it. I don't care that there's no charge to use it as a debit card. I can use my credit card the exact same way and have more protection doing so. And I never pay interest either.

I refused to get the combination ATM/debit card because, while I am technically protected if someone gets my card and uses it for thousands of dollars in transactions, I don't want to deal with the hassle of having to chase down getting that balance back into my account and the days, or possibly weeks, of delay it takes to do so. With the credit card, as soon as I dispute a charge (though I've never had to do so), it's in limbo until resolved and I don't have to pay a penny for it.

What's ironic is this decision to combine the ATM and debit card means that my business actually costs them more money because I end up going to the counter to do transactions.

I had the same issue when my bank changed a few years ago. It turns out that if you don't "activate" the card when it comes in the mail by calling the number on the sticker, it can only be used as an ATM card, not as a debit card. So we have a card that looks like a debit card that is not. You might try to see if that works for you.

I pay everything I can on my credit card, which I pay off each month. We enjoy the many rewards from using credit cards (upgrades to first class, free hotel stays, free train travel, free $$) and never pay interest.-- Suzanne

 

[Disney-Kim]

not sure if there will be too many places left to go. I am with BBVA Compass and so far no debit fees. but we lost some perks.

 

[Cruise]

I had the same issue when my bank changed a few years ago. It turns out that if you don't "activate" the card when it comes in the mail by calling the number on the sticker, it can only be used as an ATM card, not as a debit card. So we have a card that looks like a debit card that is not. You might try to see if that works for you.

That's good to know if I ever decide to go forward with it. But it was also the fact that they wanted to run a credit check on me to issue it as well. Why, is beyond me if it would only be tied to my checking and savings account for which they already know the balances.

 

[Swimalie]

instead of paying with a debit card and risking that an error of some sort will cause my account to become overdrawn, I will continue (as I have done for YEARS) to pay for all my purchases with a CREDIT CARD, then pay off the balance each and every month as soon as the bill comes in the mail. There's no monthly fee for that, and I haven't paid the credit card company a penny in interest in years and years.

I don't even HAVE a debit card. When the bank sent me one, I brought it in and told them I don't want it. Instead they gave me a regular ATM card which I use to withdraw cash at the branch (no charge for that, even if it was a Bank of America atm card, and that's going to remain true even with the new charges according to what I heard on the news yesterday).

I agree! I have the same ATM-only card. I have been told that it will remain free (as long as I use one of my bank's ATMs).

 

[hopemax]

So I missed this when the initial reports came out, and I figure others did too. Apparently, if you have either

A. A Bank of America mortgage or

B. $20,000 combined in BoA and/or Merrill Lynch accounts

You will not be charged the debit card fee.

Weird the link I had, did not work.

We have a BoA mortgage, so I guess we will able to avoid the fees.

 

[bluesaturn]

I don't get charged a fee for handing the cashier the green stuff which is cash. Plus using cash you have better control over your money, you can see what you are spending, using a debit card (yes it comes out of the checking) but it is too easy to go over your budget using a debit card.

I feel I have much better control over my money using a debit card or credit card. I can long into online banking everyday and see exactly how much I've spent, including $3 at the gas station for a snack or whatever. I have no desire to carry around tons of receipts for various small purchases, and although I keep my own spreadsheet of my spending I like being able to compare that to my card statement online.

 

[Crazy4Disney06]

I did not take the time to read through the entire post, however if you have:
- A mortgage with BofA
- Direct deposit of over $1200 a month
you will not be charged the debit card fee. I got the letter last week. This is effective as of June 2012.

 

[dtauer]

The problem I have with all of this, the interchange fees charged to a retailer by various banks will be capped tomorrow, so you and I and everyone knows the retailers are NOT going to be lowering prices tomorrow. Prices will remain the same, now those who's bank choose to charge for debit card usage will pay twice. Once from the retailer who already factored in these charges into their pricing model and now from the bank.

This is the real problem. It's easy to blame the banks, but for an interesting read about government gone wrong, please do a little research on the Durbin amendment.

Instead of allowing competition in the marketplace, the Durbin amendment forces a "fixed" fee the banks can charge the retailer for using their card. There are a couple of problems with this. First, it only applies to the biggest banks in the country. Second, I've read the studies, and the fees being allowed are only enough to cover each transaction, not provide the infrastructure. This means the bank can support the card, but not charge enough to implement programs such as cash back on debit cards, because the government is dictating what they can charge.

Third, and the biggest issue. If you look at the Durbin amendment, it is meant to stimulate the economy. The way it is supposed to accomplish this is by charging the retailers less for each transaction, the retailers will then lower their cost by that 1-3%, and that will stimulate buying. If anyone goes to Target or Sears tomorrow and sees the prices lower because the retailers have to pay the banks less fees, I'd like to hear about it.

I'm no expert, and I don't work in banking, but I read the amendment out of curiousity and am shocked that this passed.

Everyone needs to make their own decisions, but in my opinion, government should let the economy and companies compete, not set the limits. For example, if BofA decides their fee is going to be 4% and everyone else is 3%, then Target can say we won't take BofA debit cards anymore. If I can't use my BofA debit card at Target, I get mad and cancel that debit card. The problem regulates itself as BofA will not raise their fees higher than the other banks if Target quits accepting their card. The banks have regulated themselves for years this way.

Ultimately, I think this hurts the retailers and it's supposed to help them. When they start getting more bounced checks, and have to spend more payroll hours to handle more people using physical green cash, I think they'll long for the days of the fees, even if they were a little higher.

Sorry for the rant. I'm getting tired of the government screwing up a system that seems to have been working fine.

 

[DisneyBill]

Not familiar with how BofA's checking accounts fees are levied, but it has to cost them more to process checks. So I'd ditch the DC and begin writing checks and see how long it takes them, or any other financial institution, to incentivise consumers to re-begin using debit cards.

Cash does make an impact on both those who pay with it, and those who receive it. Many restaurant servers who I've tipped with cash have confided that the tip is much more apparent and appreciated when conveyed in cash rather than a line item entry on a paper slip.

This whole matter of banks scrambling to replace fees eliminated/reduced by F-D, is a perfect example of unintended consequences. The government's involvement, and resulting mandates, is shifting the burden/costs previously rightfully borne by those who didn't play by the rules by i.e., having adequate balances in checking & experiencing high NSF charges at POS, etc..., to those of us who have not been remiss in our commerce responsibilities by implementing fees such as this $60 annual charge for transactions clearly less costly than paper checks.

 

[kirrrby]

So what's going to happen to those who have Student or Military banking (Initially free, Students have student banking as long as they're enrolled in high school/college. Military has free if they do direct deposit)? My student banking runs out soon.What about the people who have no or low credit and can't do the CC route? I haven't received a statement saying these changes were coming yet.

 

[Judique]

instead of paying with a debit card and risking that an error of some sort will cause my account to become overdrawn, I will continue (as I have done for YEARS) to pay for all my purchases with a CREDIT CARD, then pay off the balance each and every month as soon as the bill comes in the mail. There's no monthly fee for that, and I haven't paid the credit card company a penny in interest in years and years.

I don't even HAVE a debit card. When the bank sent me one, I brought it in and told them I don't want it. Instead they gave me a regular ATM card which I use to withdraw cash at the branch (no charge for that, even if it was a Bank of America atm card, and that's going to remain true even with the new charges according to what I heard on the news yesterday).

This is me exactly. No fees.

 

[Judique]

Well, I just finished opening a new account with Navy Fed. We had been throwing the idea around for awhile, but didn't want to deal with the hassle since we have so many different accounts with BofA. In a few months we'll completely close all our accounts with them. I can't stand to have to pay to use my own money...

We've been with Navy Federal forever, it seems. One thing we did was open an account for each child.

Navy Federal counts their time as members when offering incentives and in giving car loans,etc.

 

[dodukes]

I havent gotten a letter yet, but what happens if you just keep the debit card without actually using it? just like at an atm at boa banks, will you then still incur the fee? heck i would either start using their cc for everything or pay cash or like a pp said, write checks!!! lol

 

[nunzia]

Agreed. I know $5.00 per mo. isn't a huge expensive in the grand scheme of life, but I just don't think it is right to charge me to use my OWN money especially when the bank is using those funds to earn interest for itself. I don't have a BoA account. If i did, I would be switching banks. If my bank were to do this, I would just stop using the debit card and start using my cc and paying it in full each month or find a new bank.

Yep..that's exactly what I would do. I bank at Wells Fargo (for local stuff) and I got a notice that my "Free Checking Account" is changing names (since it isn't FREE anymore I guess...and to avoid a $7.00 month fee I have to have minimum $1,500 balance in the account, or have $500 month direct deposited. Both my DH and I work at places that do not do direct deposit (my part time job does but I don't make near $500 a month there), so I transferred the $1,500 from an ING account over to just sit in the checking account. I'm not making $7.00 a month interest at ING on that $1,500. I do an auto deposit into savings for free BillPay..if Wells Fargo mixes it up enough to where I can't avoid fees for certain things..then I'll pay everything with CC and then pay off CC monthly, if they do away with free Bill Pay and the cost of stamps is less than the service, then back to checks I go. They are playing to game to get as much from their customers as they can..OK..that's fair..but I am playing the game to keep as much of my money in my own hands as I can.

 

[C.Ann]

One of the reasons I don't deal with banks who have nationwide branches..

No changes from my local banks so far - except for an offer for a rewards debit card that gives greater rewards than what I already get with one of them..

Might turn out that these big banks end up shooting themselves in the foot..