Goodbye to Free Checking Accounts

[The Straight Story]

Goodbye to Free Checking Accounts

Unable to earn as much as they once did on overdraft fees because of new federal rules, banks are offering fewer free-checking accounts and raising fees on noninterest-bearing accounts to make up for lost revenues.

A survey by Bankrate.com found an 11% drop in the number of free checking accounts from last year to this year. The study also discovered that banks are demanding higher minimum-average balances to avoid monthly fees, with the average now at $249.50. Last year, it was $185.75, and in 2008, it was $109.26. Thirty-five percent of noninterest bank accounts now have either a monthly fee or a minimum balance requirement, up from 24% last year.

Additionally, banks are charging higher monthly fees than ever before, with the average now up to $2.49, the highest level since Bankrate began its yearly surveys in 1998.

http://www.allgov.com/Where_is_the_Money_Going/ViewNews/Goodbye_to_Free_Checking_Accounts_101129

[WonderGrunion]

1. Maybe at banks. Try a credit union.

I haven't done business with a bank for decades.

[GoCubsGo]

2. Not at your local credit union.

And, they don't harass you with daily phone calls to try to get you to buy their life insurance, home warranties, and other shit, either.

[pinto]

3. Third for a local credit union here.

Many have broadened their eligibility. Really worth a look.

:thumbsup:

:thumbsup:

[LWolf]

4. Again...credit unions.

I like mine.

[Robb]

5. Credit union. Or, if you qualify, USAA.

[FreakinDJ]

6. IF you can find a "Reputable Credit Union"

Mine was such a "Fee Monger" in the run up to the Real Estate Crash after 15 years of doing business with them I pulled ALL my money out and open a regular Bank account.

I have since found a better credit union too

[KharmaTrain]

7. Just Threaten To WIthdraw Accounts...

As usual the little guy gets screwed...but banks have been preying off them for years. We are constantly checking statements to see if they sneak in fees or charges and call them on it. The best threat that works is threatening to move the account(s) elsewhere and watch the fees disappear. Of course this only works if you have more than a savings or checking account, but it's worth a try if the bank starts to play games. Most people don't even look for these fees and that's what the banks are hoping for.

[Laelth]

8. Good. "Free" checking accounts, generally speaking, are paid for by fees assessed on the poor.

Why should wealthy people get a "free" service paid for by fees assessed on those who sometimes bounce a check or are late with a credit card payment?

-Laelth

[elocs]

9. Well, I am officially a poor person (not wealthy) and I've appreciated free checking.

I don't bounce checks and neither am I late with credit card payments either.

Chalk up another stroke for the DU broad brush.

[Radical Activist]

10. It's awesome that Obama got rid of the overdraft fee scam.

It's worth celebrating!

This story is one more reminder of why not to use banks. They'll always find a way to gouge small time customers. Credit unions are the only way to go.