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

[Bell30012]

Ad tauer pointed out this is the downside to regulating what the banks can charge in certain fees. The banks have to be able to make money. Via the Durbin Amendment the govt told banks what they could charge in certain service fees. Did anyone think that the banks would just take a huge profit loss without looking for another revenue stream?

You can expect caps on transaction with debit cards coming too. That means if you want to use your debit card for a $500 purchase, you may need two swipes. Of course, we do have the right to vote with our dollars.

I left Bank of America when I found out that people had to pay $5 to cash checks that I wrote to them. Yes, that is correct. I wrote a check to my paperboy and he had to pay $5 to cash it. I wrote a check to the kid that mows my lawn... $5 to cash it. I dumped Bank of America and went to Chase. Mainly for the Disney Debit Card which has just been canned and the iPhone deposits.

The banks that will win out will be the smaller banks.

 

[dvcgirl]

Ad tauer pointed out this is the downside to regulating what the banks can charge in certain fees. The banks have to be able to make money. Via the Durbin Amendment the govt told banks what they could charge in certain service fees. Did anyone think that the banks would just take a huge profit loss without looking for another revenue stream?

You can expect caps on transaction with debit cards coming too. That means if you want to use your debit card for a $500 purchase, you may need two swipes. Of course, we do have the right to vote with our dollars.

I left Bank of America when I found out that people had to pay $5 to cash checks that I wrote to them. Yes, that is correct. I wrote a check to my paperboy and he had to pay $5 to cash it. I wrote a check to the kid that mows my lawn... $5 to cash it. I dumped Bank of America and went to Chase. Mainly for the Disney Debit Card which has just been canned and the iPhone deposits.

The banks that will win out will be the smaller banks.

Chase does this as well....I think they charged me $6 to cash a check. It was from a customer who had bounced a couple of checks in the past, and so I went to cash it....and was told about the fee. I was told the fee would be waived if I opened an account with Chase. No thanks.

We still have an account with Bank of America. DH just hasn't gotten around to switching our household checking account to a smaller community bank. My business account is with our small community bank. Once BofA pulled this latest stunt, DH said..."that's it....I'll move everything out of there by the end of the year".

I understand what they're doing and why they're doing it. They're trying to push customers away from using debit cards and over to credit cards...as the new fee structure of the Durbin Amendment doesn't apply there. Before, they encouraged customers to use their debit cards for all charges....because they made more money that way.

Still, I think it's going to backfire on them. So many Americans are fed up with the Monster Mega Banks. They along with the large Wall Street institutions hold a great deal of the blame for bringing us to the precipice of financial ruin. And they're bigger than ever....CEOs making more than ever. Things really have to change.

And one thing we'll be doing to help things change is to close our Bank of American account. We're not alone. I've seen many news reports where BofA customers are doing the same thing.

 

[SalandJeff]

I've said it before and I'll say it again ... BoA sucks. Unfortunately, our mortgage is with them (after being sold and transferred when they swallowed up Countrywide). Thankfully, we have not used them for our other banking.

The only solution is to stop playing games with these big banks and use a local bank or credit union for all your business.

 

[Disneyliscious]

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. (This would only affect the modest to wealthy, as they are the only only ones who even have a card and/or charge enough each month to get enough rewards to use. Taking away the incentives makes it an even playing field for everyone. The *hope* that retailers would lower their prices due to less cost to them now, would help every one equally.)

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. While you personally may handle it that way, the majority of consumers would just shop at another store instead of Target. People don't cancel cards just to shop at a particular store. They don't need to. Therefore, Target (or whatever store was using that practice) would lose business.)

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.

When you have a handful of mega-banks laying off thousands yet making record profits, the system isn't working fine. The ONLY thing that is going to get the economy back on track is - Jobs. If people can't work, they can't make money to buy things. If things aren't being bought, companies go out of business and more jobs are lost. Its a negative circle-cycle. Instead of using part of those "record profits" to keep people employed (and therefore spending which creates a positive circle-cycle), they are squandering the money aside for their bottom lines and its digging the economy into an even deeper recession.

You will see a slight pick up because the holiday season is upon us, and you will see the boasting of new jobs, spending, etc. When January hits....its going to go right back to where we are now, and I'd dare say its even going to be worst. Companies are trying to squeeze every penny they can out of consumers and there just isnt anything left to squeeze. I don't have a problem with any bank charging for their debit cards, its the timing I have an issue with. Its just one more way greed has reared its ugly head.

 

[Tistal]

- 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.

That's actually extra salt in the wound to me. I'm not (and never have been or never will be a BoA member), however, they're applying the fee to people who usually have the tightest funds. (note: this isn't to say individuals who make more than that do not have tight funds).

I work at a university that is made up of a majority of commuter students (read: they don't live with mom and dad to pay for everything or help them out), and this will hurt many of them a lot (BoA has a HUGE kiosk on campus, and it's always busy). It really makes me angry when companies take advantage of them.

 

[kellyg403]

I have my personal account with BoA and read this article today. I don't want to pay them 5 bucks a month/60 bucks a year. It means in a few years time I have wasted one paycheck on fees to use their debit card. My dh has a mortgage that was with countrywide and was bought by BoA. I might just have to add his name to the account. I have a few direct deposits to that account I don't want to mess with, including my child support, so I don't want to move the money into another bank just yet.

I am wondering about just going back to writing checks again. But, I noticed that they automaticallay debited from youour account as well. Its like a paper debit card now.

I understand why its gotta to be this way. I remember way back when I was a single mom on limited income. BoA would get my direct deposit and not credit it to my account even though they received it electronically at midnight. It would show credited on the right date, but they would pay out any debits hoping to hit with a 35.00 overdraft fee. Happened to me ONCE. I was 13cents short on a debit, with a direct deposit credited to my account listed on the very next line.

I am definitely going to have to think and research the best place to go. I have a USAA account that I use for savings. I might just switch to them 100%

Kelly

 

[mello]

They have a right to charge anything they want. But I also have a right to bank anywhere I want, so I'll be voting with my dollars and my feet. I don't see any point in paying out more $ than I have to, so I'm going to close my BoA checking account. I use it as a grocery account, and have an airmiles debit card attached to it. I'm already paying a yearly fee for the airmiles card, and after doing the math, I determined that a monthly fee on top of that will make it not worth it to me anymore. I'll just add a debit card to my local credit union checking account and use that instead. If debit cards get too expensive, I'll survive without them like I used to do before we had them. I'm not angry about it - banks have to do what they have to do to survive, but at the same time - so do I.

 

[plummer925]

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.

This is *kind* of where I am. We are relatively low-income (by choice though - we choose to live simply and work part-time so we have time to enjoy each other). Our income is definitley enough for us to live on, but "on paper" we are "poverty level", which makes me giggle sometimes - we are SO far above poverty it's not funny- almost debt free (have student loans) and vacation a couple times a year. We do not collect on any assistance (like heat, food stamps, etc) even though we "technically" could.

But...due to our income we do not qualify for "high limit" credit cards - we would not be ABLE to use our cards to pay our monthly obligations.

Plus, even though we are VERY careful about money (i.e. saving so we CAN go on vacations - oh, and our vacations consist of tent camping in national parks and things like that - we do not spend thousands...or even a thousand usually...on vacations), an extra $5 a month is a lot of money (I'm disabled so have a national park pass for free - camping is $10 a night with the pass - $5/month = $60 a year, which is our camping fees for one of our vacations!!).

We ARE BoA customers, and we MAY be switching because of this. There is a local owned bank that is offering a $250 bonus to switch to them - I've read the fine print - we would qualify for the bonus (direct deposit, bill pay, etc). Hmmm...PAY $60 a YEAR of get a one time $250 bonus? I'll take the bonus (oh, and that IS free banking with free checks even!).

There are a few advantages of BoA that we have to weigh out - their ATM deposits are the best - I like that I can deposit up to 8 p.m. and have it be same-day. They always credit deposits before debiting withdrawals first (this USED to be more important to us as we used to get the balance down low - now we try to keep a cushion in there).

BUT...I also have a business acct with them (hubby has a small business) and if that acct will also start charging, that is $10 a month - a HUGE amt for us...

I guess I will have to weigh my options...but I suspect that BoA will be losing us as customers too!

 

[Shelly F - Ohio]

I love our credit union. We bank with Kemba Credit Union. And for those of you who are not familar with a credit union look for one that is a member of the "shared credit union". That this means is that you can bank at any credit union. For example I have an acct at Kemba but can use the School Employee Credit Union or the Firefighters Credit Union, to do my banking such as deposit checks, buy money orders, withdraw money. Basically any transaction I can do at Kemba I can also do at a another credit union. Which is very handy and there many credit unions who are apart of this program.

The other good thing about credit unions your interest on savings, checking and CD compounds monthly not quarterly like most banks do. Although interest rates are horrible no matter where you bank, you will earn a bit more interest at a credit union since they credit interest monthly rather than quarterely.

 

[DawnM]

My understanding is that if you have a mortgage with them or a combined amount of $5,000 in your accounts, you will not be charged.

I didn't know about the direct deposit, but we have that too.

I just know that when I went in on Friday I was told we would not be charged when the $5 fee is implemented.

We have never paid a fee with BofA for any reason. I once had a $3 fee for withdrawing more than 3 times for the month from my savings, but since it was actually because of someone hacking my iTunes account, it was credited back to me.

The day we actually have a charge, I will leave.

Dawn

 

[marko]

Does anyone know if the $5 fee per a debit card, or per an account?

 

[barbarabini]

I wouldnt keep 5000 with them b/c their rates are terrible. You pay them by taking a lower rate than you otherwise would receive for your $.

So, they are going to charge me the 60 fee. I am not sure if that will make me move or just cancel the debit card. But, the overall increase in fees for everything just adds up. I don't think it was the 60.00 that puts it over, but the 3.00 monthly check image fee, then my real estate taxes went up by 1300 in september, then the company switched to 3000.00 high deductible plan WITH 40% coinsurance. Every year it seems, we have to pay much more for everything. So in /january, just to stay even, we need to make an additional 7000.00. ugh.

 

[CatNipRules]

This is why I don't have an account with a bank. I bank through my Credit Union. I'm never charged any outrageous fees and I love the service that I get there.

 

[budcollector]

from what i've heard, the $5 fee only kicks in if you use the card to make a purchase and not withdraw from an atm.
so to stop the fee only use the card to withdraw cash at atm's before you get to the store, or pay with cc then make a transfer from checking to cc.

 

[CatNipRules]

from what i've heard, the $5 fee only kicks in if you use the card to make a purchase and not withdraw from an atm.
so to stop the fee only use the card to withdraw cash at atm's before you get to the store, or pay with cc then make a transfer from checking to cc.

It's still crazy that their customers would have to go through all of that trouble. The purpose of having a debit card is for convenience. If I have to go through all the trouble of taking out money beforehand, I'd much rather not go to all the trouble. Plus, if you were to use it at a gas station the convenience of it goes right out the window.

Once again, credit unions are the way for me. No needless fees or hassles......

 

[Planogirl]

Is it true that they won't charge if you have a mortgage with them? We certainly do have that....

 

[Bell30012]

What is a shame is that I was well on my way to becoming cashless. In the past couple years I've used my debit card exclusively when making purchases. With the exception of a few yard sales, I don't remember the last time I pulled out cash to pay for something.

I love the convenience of the debit card. If my bank, Chase decides to start charging for debit card use I'll switch to another bank that does not. For many years, I was with Main Street Bank until they got gobbled up by BB&T. I switched to Bank of America until they started charging fees for everything. I'm not afraid to switch.

 

[DisneyBill]

Well congrats to all who have BOA accounts! Good to read BOA reversed the decision to charge the $5 fee for debit card usage. WTG those who walked away from BOA.

 

[eliza61]

Well congrats to all who have BOA accounts! Good to read BOA reversed the decision to charge the $5 fee for debit card usage. WTG those who walked away from BOA.

And BOA is still hemorraging customers.

 

[plummer925]

And BOA is still hemorraging customers.

I'm still planning on leaving them!! I have 2 direct deposits that need to start in my new account, then it's Bye-Bye BoA!!