How USA Today Says You Can Avoid Raising Bank Fees

Sooooo I was reading on USAToday.com today some veeeery interesting information on recent bank fees that are being raised for their customers. This is what Sandra Block of USA Today had to say about it. I think you'll find it interesting:  

Next time Grandma and Grandpa get to reminiscing about the good old days, ask about the time they opened a bank account and got a free toaster oven. Not only that, but they earned a pretty decent interest rate, too.

 

Those days are long gone. Banks are awash in cash, despite the fact that they're paying pennies in interest. And increasingly, customers are being charged for services that used to be free.

 

Banks say recent regulatory changes have left them with no other choice. Starting Oct. 1, the maximum fee that banks can charge retailers when customers pay with a debit card is 21 cents, down from an average of 44 cents. The fee cap is expected to cost banks $10 billion a year.

 

A good solution: Consider a small bank or credit union. Credit unions and small banks have historically charged lower fees than large banks. That gap could become even wider. The law mandating a reduction in debit card fees exempts banks and credit unions with assets of less than $10 billion.

 

A survey conducted in the spring by the U.S. Public Research Interest Group found that consumers could find good deals at regional banks and credit unions, says Ed Mierzwinski, consumer program director. Similarly, a Bankrate survey found that three-quarters of credit unions offered free checking, and 96% offered it for account holders who had direct deposit or agreed to receive electronic bank statements.

 

Steve Troutner, who heads banking products for Citibank's retail arm, says Citi offers conveniences that small banks and credit unions lack, such as free withdrawals at more than 29,000 ATMs. "Credit unions can't make that statement," he says.

 

I think I know many of you will join me in letting Mr. Troutner know that his bank can keep their 29,000 ATMs. No wonder they're charging folks extra, what kind of overhead does it cost to manage that many ATMs? Where does that money come from? You guessed it, their customers. I found this info really interesting and thought USAToday brought some good points.

 

That's all for now, stay tuned for some info on how the Spokester Summit is going! See you guys soon!

 

Lee