Hell, no! The New York Times is reporting that banks such as Wells Fargo are experimenting with fees for debit card users. Are you serious? I will be the first person to change my bank or go to a credit union if my financial institution pulls a stunt like that! I mean, really. From reading the article, it looks like some of the banks are hitting up the student accounts and the more entry level accounts.
According to the article, SunTrust started a $5 per month fee (potentially $60 per year) for debit card purchases for customers who have the basic Everyday Checking account. The student checking account will get the fee next spring.
In October, the article says that Wells Fargo will test a debit card “activity fee” of $3 per month (potentially $36 per year) when a customer makes a purchase or payment with a debit card linked to a personal or business account.
The test will affect accounts opened in five states: Oregon, New Mexico, Nevada, Georgia and Washington, according to the N.Y. Times.
Other banks picking up on this craze are JPMorgan Chase (testing in Wisconsin) and Regions (for the holders of its basic LifeGreen Checking and student accounts).
Be warned, my Frugalistas. Be warned. I think the banks are going after the student and basic accounts because they tend to have less money in them, so there’s less opportunity for the banks to earn decent interest on the cash. Also, I have a sneaking thought that the students may be less inclined to notice or complain about the fee.
If your bank starts with a debit card usage fee, call your bank, complain and threaten to change banks. Debit cards are as much as part of our lives these days as breathing. It’s the modern way to pay. You can’t use checks in the express line at the grocery store!
Would you change banks if you got a monthly fee for using your debit card? Does this concern you? Is this predatory? Is this just the cost of doing business?
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{ 5 comments… read them below or add one }
I’ll start keeping my money in 1st National (what my grandmother called her bra)
I would change banks so quick!!! That’s just ridiculous!!! Charging a fee to use a debit card…I’m going to be fussing about this all day. lol
@Coco: HAHAH @grandma!! I wonder if that’s an idea for a new bra line? Like bras with a little money pocket…like greeting cards used to have!
@Karen: You see I had to blog about it. The nerve! I wish my bank would!!
I thought I’d be first but am ok with being second should my bank decide to do this. I’ve still been trying to wrap my mind around their statement of “this will offset losses due to recent changes.” Sooooo did you hear what you just said? You’re really looking to keep up your profits by now passing it on to me? Heck, I left the bank that W. Buffet just gave money to over $3 they charged me because I transferred one too many times in a month and wouldn’t refund as a courtesy. If this isn’t worthy of a C’mon Son then I don’t know what is!!!
I was shocked when I got the notice from SunTrust. I will be switching banks. It is the most ridiculous thing I have heard from these banks in a while. They get government money to bail them out from their poor decision making, and instead of helping the economy by helping their customers, they stick it to them. My first thought was to keep my money in the mattress like our grandparents used to.