Debit Card Fee: Bank of America Will Start Charging You
The debit card is an easy way to pay for your groceries, your restaurant bill and your purchases at K-Mart or Macy's. But banks are trying to figure out how to get more money from your banking account into theirs. Bank of America is going to start charging you to use your own debit card starting next year.
How much will Bank of America charge?
It will be a $5 monthly fee. Ok, so $5 isn't that much spread out over a month, its peanuts right? Yes, but it's your peanuts.
What other financial institutions will charge a fee for debit card use?
It looks like Wells Fargo, CPMorgan and SunTrust Banks are all either planning to charge or are already testing a monthly fee.
How can you avoid paying a fee for your debit card?
You can shop around and find a bank that isn't yet charging a fee. Get out the phone book and start calling your local banks and ask if they charge or plan to charge a fee.
What bank says they won't charge?
Citigroup, Inc. says they will not charge a fee for debit card use.
Pay the old fashioned way - use cash
Here's an idea to avoid being charged a monthly fee when you use your debit card. Write out a check for cash, go to your bank's drive-through window and hand the lady your check. She will smile and then disappear for a minute. When she returns she will hand you an envelope with actual cash money inside. You can then pay your dry cleaning bill and O'Charley's tab with that money. Try it, you might like it.
If you use your debit card because it is easy and you don't mind paying the $5 fee, then don't worry about it. You need to be in control of your money and at least if you are aware that you may be charged a fee, then you can decide to stick with your bank or move on.
Personally, if and when my 'small town bank' starts to charge a fee I'll worry about it then. But for now I like the convenience and I prefer not to carry cash.
Source:
Published by Abby Greenhill
Abby is a retired Administrative Assistant. She is a pet lover who has many years experience as a dog owner. She loves to take road trips anywhere up and down the East Coast and tries to stay current on ne... View profile
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25 Comments
Post a CommentAll the more reason not to bank at The Spawn of Satan...oh, I mean Bank of America.
Good idea Michael!
I found a remark on Twitter the other day: we should charge B of A every time they use the word America.
Good update, thanks Abby...
I actually use prepaid debits (not attached to bank accounts) because they are much more convenient for me. I do end up paying more than $5 a month on them because it costs $3 to load, but to me...it's worth the convenience it allows me.
Bank of American can KISS IT! I hope this puts them under.
Yes, I know they always charged for using other banks, but my line of credit deal kept me from getting charged by my bank, it was one of the benefits of a "circle account." Now, even that isn't keeping me from getting nailed for these fees.
For years banks have charged fees if you use another bank's ATM machine. You can get around that by making a purchase at a store, use your debit card and get cash back.
It makes me sick. I stay at my bank because I have a revolving line of credit, and as long as I owe them money, I get no fees on my checking account. Recently, however, they started charging for ATM usuage anywhere but my bank's machines, $3 a shot. It's usually not a problem, but recently we went away and it ended up costing us $15 because my bank has no branches in the area where we were. I just think it's terribly wrong.
If they were my bank, I'd drop them in a hurry!