Hello, My Fruggies! I am still vexed at all of this banking fee news, even though I saw it coming and wrote about it at TheFrugalista.com. With Bank of America declaring that it will charge $5 per month for debit card usage, what’s a Frugalista to do to hold onto her money? I mean, it’s $60 a year. No, this bank fee trend will not put me into poverty the first year; however, fees are still a drain on anyone’s coffers. If the average life expectancy is 77.9 years, are you trying to tell me that an 18-year-old college freshman could potentially spend at least $3,600 of what could be her retirement income paying for Big Bank X’s CEO’s corporate bonus? What if she had invested $60 per year instead of paying it to Big Bank X? Get my point?
Another problem I have with most of these bank fees is that they prey on the financially insecure. In most cases, it’s the student accounts or other entry-level accounts that are getting stuck with fees. In Bank of America’s case, you have to have more than $20,000 saved in the bank or a Bank of America mortgage to beat the fee. Why? Well, the banks can make more interest of your money if you put more of it in the bank. Also many high wage earners or savers, wouldn’t stand for it. So, while we Frugalistas are working on earning and saving more so these bank fees won’t curse our wallets, I’m still determined to find some other solutions!
On Twitter, we had a really great conversation about bank fees and alternatives to paying them. I’m continuing the conversation at 8pm est. on Wed. I am holding a Twitter #dealchat on exploring credit unions. Now, I don’t think credit unions are perfect, but I do think they are an option worth considering when it comes to your money. In fact, there’s a “Move Your Money” movement that’s been going on for a while.It’s not the easiest thing to change financial institutions, but it’s not the easiest thing to watch your money get “nickeled and dimed” away. We may not have all of the answers, but we sure can ask the right questions! Be sure to follow me on Twitter @frugalista.
So what do you think about the fees? Do you think people are whining too much about them? Do you think people are cheap? Do you think banks are trying to stick it to the consumer? What are you going to do about the fee? Would you change banks?
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All banks are going to be charging fees minus Citi Bank. They are blaming it on new regulations set on them. Ready for this dealchat on wednesday so i can learn more about Credit unions
That is true. I just switched from BOA to USAA because of their rediculous fees they’ve been adding on since January. Luckily my true account is at a credit union. They never put fees on anything unless you overdraft or you have a credit card or loan with interest.
I think we’re soon headed to the good old days where we keep our monies in our bosom (I do that already, with my cell phone) and under our mattresses. But before we resort to that, credit unions are still the way to go! … until they catch on and try to do the same!
I love that you all are picking up on the trend. I use a credit union for my financing needs and have had an awesome time. HOWEVER, my credit union was bought by another credit union and I’m not as in love with what I see on the website. I think credit unions are a great option but we always have to be aware. Not all are created equal, so we will learn at #dealchat how to pick the right credit union or banking instituion! Paying crazy fees will NOT be an option for my Frugalistas! XOXO!