$3 monthly debit card fee? Goodbye Wells Fargo!

[Miramonti]

My pity here lies in those who haven't already had cause to switch their accounts from Wells Fargo already. Seriously, this bank is a sh!thole.

Research your local credit unions...unlike WF, Chase, and BofA, they can offer you free accounts, ream-free.

 

[darkewaffle]

WTF?!?! ummm dude, as long as you can access your cash any of those other problems are moot.

However, not being able to get cash can create a landslide.

And car/phone/internet/computer problems can all keep you from your cash, but still you don't see most people walking around with two of them just in case.

If you're seriously concerned that an institution you have money deposited in will fail or even just keep you from your money, what are you doing depositing there in the first place?

 

[alkemyst]

And car/phone/internet/computer problems can all keep you from your cash, but still you don't see most people walking around with two of them just in case.

If you're seriously concerned that an institution you have money deposited in will fail or even just keep you from your money, what are you doing depositing there in the first place?

You aren't getting it...are you even an adult?

It's not the that bank is going to fail, it's that any single card can fail whether by physical issue or electronic ones.

Unless I am on a deserted island, having available cash can solve the rest of the issues.

You are playing a TERRIBLE devil's advocate. At least own a bank card first prior to trying to troll about them.

 

[alkemyst]

My pity here lies in those who haven't already had cause to switch their accounts from Wells Fargo already. Seriously, this bank is a sh!thole.

Research your local credit unions...unlike WF, Chase, and BofA, they can offer you free accounts, ream-free.

Posted already...these are ghetto-solutions as well.

Get a real bank account and carry a real balance. LOOK! No fees!

At get this shit, I can access my money across the country and even the world.

FUCKING MAGNETS, HOW DO THEY WORK?!?

 

[Sunbird]

Disclosure - I am a banker...

All banks have different types of checking accounts, and each of those different accounts have different fees or requirements. If you talk to a banker about it, they will likely recommend that you change your account to another type that may be a better fit for you.

If you bring more of your business to any bank, and upgrade to a higher level account, you will likely not have to deal with these type of issues. Times are changing, and banks' profits have been slashed greatly, so look for ALL major banks to be implementing changes, and they will ALL have some sort of requirements to be met in order to have those service fees waived.

The bottom line is that checking accounts have not always been free; it is a relatively recent development. If you want to keep your business spread between several banks, that is your decision and nobody will argue with you, but you'll probably find that banks will be more lenient with you if you qualify for and maintain a higher level account by consolidating your finances with one institution.

Sounds like the South African school of banking has come to America... at the "4 big banks" you pay no matter what little small transaction you do, even if you do nothing you will pay some monthly fee. And they make record profits each year so they cant use the "tight business" conditions... but they do!

 

[Miramonti]

Posted already...these are ghetto-solutions as well.

Get a real bank account and carry a real balance. LOOK! No fees!

At get this shit, I can access my money across the country and even the world.

FUCKING MAGNETS, HOW DO THEY WORK?!?

Whether one's in the top floor of a penthouse, the north wing of a mansion, or the first floor of a burned out shack in Detroit, a hot steaming pile of sh!t is still a hot steaming pile of sh!t.

 

[KentState]

Posted already...these are ghetto-solutions as well.

Get a real bank account and carry a real balance. LOOK! No fees!

At get this shit, I can access my money across the country and even the world.

FUCKING MAGNETS, HOW DO THEY WORK?!?

Not sure what you are calling a "real balance", but if 40k doesn't get you out of fees, then I'm going somewhere else. They are tacking this on to everyone that uses a card linked to one of their accounts.

 

[alkemyst]

Not sure what you are calling a "real balance", but if 40k doesn't get you out of fees, then I'm going somewhere else. They are tacking this on to everyone that uses a card linked to one of their accounts.

In a few states. Also there are other banks out there. If your area accepts the $3 fee then other banks will follow. If they vote by moving their accounts, then others will not.

IMHO this is merely a fee that will get the riff raff out of their banks. Chase needs to do this to blow out all the old WAMU 'no balance' free checking people...I swear those dregs cost the bank thousands per year.

I have Chase for easy access and I use Citi for convenience.

 

[Pliablemoose]

I spent ~40 minutes in full rant mode when my local WF branch refused to cut me a certified check for my mortgage payoff, they wanted me to drive across town to go to the branch where I started my account, because "they know you" They cut my check finally, but I really hate to get that pissed off in public.

I have my direct deposit set up to my brokerage's bank already, soon as my debit card for that account shows up, I'll be closing my WF account.

I'd decided to switch a few weeks ago, when I realized all of my positive interactions with WF were over the net, and my interactions with WF in person were nearly all nightmares.

For me, the one that really did it was a month ago when a teller told me that they didn't issue certified checks or money orders at that particular branch... 😵

 

[kami333]

IMHO this is merely a fee that will get the riff raff out of their banks. Chase needs to do this to blow out all the old WAMU 'no balance' free checking people...I swear those dregs cost the bank thousands per year.

They already did.

The grandfathered Wamu Free Checking accounts started being converted to Chase Total Checking accounts in Feb of this year (mine got converted in May) and they started charging $10-12/month with waivers for $1500 daily balance, $500 DD, etc.

 

[highland145]

I spent ~40 minutes in full rant mode when my local WF branch refused to cut me a certified check for my mortgage payoff, they wanted me to drive across town to go to the branch where I started my account, because "they know you" They cut my check finally, but I really hate to get that pissed off in public.

For me, the one that really did it was a month ago when a teller told me that they didn't issue certified checks or money orders at that particular branch... 😵

F that. Postal, here we come.

Personally haven't had any problems other than the FIA visa which lost WF my credit card business. I still bank with them. Free checks since 1988 but that's not enough for me to stay and put up with ANY crap.

 

[flvinny521]

The banks profits have been slashed... Really? Why do you always hear about all these big banks and their billions in profits? BS on this statement.

Free checking accounts are a new development? I am 56 years old and have never paid for a checking account. Again BS.

I've had free checking for over 20 years, the last nearly 15 years with the same bank.

As I said before, you have every right to bank wherever you feel deserves your business, and I will not argue that with you. But just because you haven't paid for your checking account in 56/20 years doesn't mean you have had a free account. What it means is that you have met whatever requirements were imposed by those banks in order for you to not be charged. These fees that OP mentioned can also be waived for you if you meet certain requirements, and nearly every bank has their own set of requirements.

Also, who is to say when a company makes "enough" profits? The board of directors? The employees? The clients of the bank? The stockholders? These are publicly owned entities, and I doubt the stockholders are going to tell the board to calm down with their fees because they don't need to make any more money. If every publicly traded business made an announcement that they were happy with current profits and weren't planning on making any more money... well, let's just hope that trend doesn't catch on.

 

[flvinny521]

Ugh you make me hate big banks even more, which I didn't really think was possible.

I am sorry to hear that you have such a negative impression of banks that you can't believe that any bank employee could possibly have your best intentions in mind. Obviously we can't change bank policies, but we will do whatever is in our power to help, and many of us are very competent professionals. There are almost always alternatives to help a client get what they want, but if you come in with that mentality, you're not allowing us to do our jobs.

Studies show that finances are the most important thing to Americans after their family, even above their own personal health. This means that the advice a competent banker can provide may actually be more important than that given by your own doctor.

 

[darkewaffle]

I spent ~40 minutes in full rant mode when my local WF branch refused to cut me a certified check for my mortgage payoff, they wanted me to drive across town to go to the branch where I started my account, because "they know you" They cut my check finally, but I really hate to get that pissed off in public.

I have my direct deposit set up to my brokerage's bank already, soon as my debit card for that account shows up, I'll be closing my WF account.

I'd decided to switch a few weeks ago, when I realized all of my positive interactions with WF were over the net, and my interactions with WF in person were nearly all nightmares.

For me, the one that really did it was a month ago when a teller told me that they didn't issue certified checks or money orders at that particular branch... 😵

Well there is some truth in that. A different branch is a little like going to a different office for your doctor or dentist, yea they have access to the same clipboard of information but they know less/nothing of your circumstances or your history or any of the more ambiguous pieces of information. If they issue you a fee refund or change some of the coding on your account or raise or lower a limit or any number of other things, most other people in the bank will only see what was changed, not why or how or any circumstances associated with it. Sometimes it's meaningless, sometimes not.

If you run a business are you better at serving a brand new customer or one that you've dealt with before? Simple as that.

You aren't getting it...are you even an adult?

It's not the that bank is going to fail, it's that any single card can fail whether by physical issue or electronic ones.

Unless I am on a deserted island, having available cash can solve the rest of the issues.

You are playing a TERRIBLE devil's advocate. At least own a bank card first prior to trying to troll about them.

Point was yes available cash can solve those problems, but then what about the problems that can keep you from your cash? Aren't they just as grave? Car breaking down, phone or computer dying, internet going down, they can all prevent your access to those funds. Yet we don't find the need to keep backups of all those on hand and one of the reasons is that they're reliable enough. However, anecdotally, every one of those objects/services is less reliable than a debit card.

I've had the same debit card with the same bank for I think... 9 years now? Every transaction I've ever made with it worked. Domestic, international, day, night, electronic, PoS, ATM, everything. From my own experience, they're very reliable. Not to mention almost everyone has a back up in a credit card anyway; though many are bank CCs, true.

There's nothing wrong with keeping accounts at multiple institutions, but given the fuss so many are making over paying a dime a day for their debit card it's hard to see them being very receptive to joining a second institution. Every bank larger than 10B in assets is going to at least consider new fees or restrictions to offset the coming revenue loss, WF and JPM were just the first to test the waters.

 

[alkemyst]

Point was yes available cash can solve those problems, but then what about the problems that can keep you from your cash? Aren't they just as grave? Car breaking down, phone or computer dying, internet going down, they can all prevent your access to those funds. Yet we don't find the need to keep backups of all those on hand and one of the reasons is that they're reliable enough. However, anecdotally, every one of those objects/services is less reliable than a debit card.

If I can get cash, I can find some one to help. I am not just talking debit though...I don't have more than one debit card that I carry. I do carry other credit cards which are a direct backup. I also carry a couple hundred around. I don't leave home with just my ID and the cash thinking I am set either.

I've had the same debit card with the same bank for I think... 9 years now? Every transaction I've ever made with it worked. Domestic, international, day, night, electronic, PoS, ATM, everything. From my own experience, they're very reliable. Not to mention almost everyone has a back up in a credit card anyway; though many are bank CCs, true.

There's nothing wrong with keeping accounts at multiple institutions, but given the fuss so many are making over paying a dime a day for their debit card it's hard to see them being very receptive to joining a second institution. Every bank larger than 10B in assets is going to at least consider new fees or restrictions to offset the coming revenue loss, WF and JPM were just the first to test the waters.

I don't really recall you being such a world traveler nor one that goes out much.

I can tell you in many places in the world you better have a well-known bank to even get access at times to their systems.

 

[flvinny521]

So why don't credit unions charge fees like that?

I have my business account with one and I have to maintain a $50 balance to keep my account open, after that there's no fees for my checking account or for my debit card and they offer credit cards with 8% interest.

I can't give specifics, as I have never worked for a credit union, but their different structure means they avoid some of the laws and regulations that affect large banking institutions.

 

[spidey07]

^ is correct. It's currently a test!!! Too see how many people LOVE paying the fee's. Hope they overturn it but I highly doubt it once they see the income coming in from the monthly fee.

They have to make up for the lost revenue somehow. This is all a result of legislation aimed at keeping the big bad banks from praying on poor little consumer.

Well guess what? You take away the banks money/income they WILL find another way to get it.

 

[Old Hippie]

Times are changing, and banks' profits have been slashed greatly, so look for ALL major banks to be implementing changes, and they will ALL have some sort of requirements to be met in order to have those service fees waived.

Of course.

The guys that say "I'll never pay that" are either 16 or younger and have no idea what's going on, someone living under a rock, or those that have so much money that the bank will "forgive" the fees....one way or another.

Otherwise....dream on. 😀

 

[TheTony]

They have to make up for the lost revenue somehow. This is all a result of legislation aimed at keeping the big bad banks from praying on poor little consumer.

Consumer protection was not the origin of this. It was small (as well as large) businesses who must pay (or pass on) the costs of those fees in order to to business.

See the multiple class action lawsuits versus Visa, Mastercard, etc for examples.

 

[gevorg]

I spent ~40 minutes in full rant mode when my local WF branch refused to cut me a certified check for my mortgage payoff, they wanted me to drive across town to go to the branch where I started my account, because "they know you" They cut my check finally, but I really hate to get that pissed off in public.

WTF? I would raise hell if they ever try to give me some bullshit like that.

 

[WHAMPOM]

They have to make up for the lost revenue somehow. This is all a result of legislation aimed at keeping the big bad banks from praying on poor little consumer.

Well guess what? You take away the banks money/income they WILL find another way to get it.

Lost revenue? They made $39 billion profit instead of $40 billion?

 

[ciba]

Disclosure: I'm a banker.

Recent regulatory changes have made banking customers less profitable. Costs of managing accounts haven't decreased, but overdraft fees and debit interchange fees were a significant part of bank revenue for retail clients. Add to this that banks are flush with cash and earning 0.25% on the margin (Fed excess reserves), less FDIC assessments, and you have a $1,000 account that earns the bank $1.50 a year.

These fees are basically the bank giving the customer a choice: become a profitable client, or leave. ANY business would manage its customers this way. It seems like seeking profits is honourable, unless you're a financial institution, and then evil. But consider: Would you work for free?

There's an argument that "banks make plenty of money." I hear this as, "your other clients are profitable, so they should subsidize me."

 

[spidey07]

Disclosure: I'm a banker.

Recent regulatory changes have made banking customers less profitable. Costs of managing accounts haven't decreased, but overdraft fees and debit interchange fees were a significant part of bank revenue for retail clients. Add to this that banks are flush with cash and earning 0.25% on the margin (Fed excess reserves), less FDIC assessments, and you have a $1,000 account that earns the bank $1.50 a year.

These fees are basically the bank giving the customer a choice: become a profitable client, or leave. ANY business would manage its customers this way. It seems like seeking profits is honourable, unless you're a financial institution, and then evil. But consider: Would you work for free?

There's an argument that "banks make plenty of money." I hear this as, "your other clients are profitable, so they should subsidize me."

You nailed it. Like I said, take away the revenue and banks will find some other way to get it. The miscellaneous fees are the result and you're going to see more of it.

I look at it as I'm subsidizing the irresponsible that overdraft and don't keep enough in their account or use their debt card for a pack of gum. It's the responsible people paying for the irresponsible via fees, etc.

 

[FelixDeCat]

Disclosure: I'm a banker.

Recent regulatory changes have made banking customers less profitable. Costs of managing accounts haven't decreased, but overdraft fees and debit interchange fees were a significant part of bank revenue for retail clients. Add to this that banks are flush with cash and earning 0.25% on the margin (Fed excess reserves), less FDIC assessments, and you have a $1,000 account that earns the bank $1.50 a year.

These fees are basically the bank giving the customer a choice: become a profitable client, or leave. ANY business would manage its customers this way. It seems like seeking profits is honourable, unless you're a financial institution, and then evil. But consider: Would you work for free?

There's an argument that "banks make plenty of money." I hear this as, "your other clients are profitable, so they should subsidize me."

I worked for a bank for almost 17 years thus the "work related account" mentioned in the OP.

Your assumption that banks only make money on a checking account balance is incorrect. They make money on debit card transactions (albeit a smaller amount now than before for those with assets over 10B), overdraft fees / protection and most likely other services that come with being associated with a customer. Those services include extending the checking account customer a personal loan, home mortgage, car loan or even a revolving line of credit for a small business.

If banks mostly lost money on free checking accounts then credit unions would have gone completely bankrupt on the concept long ago.

According to a recent article, the biggest banks are out $200m in swipe fees due to the new limit and since they are owned by stockholders they are just trying to make up for lost revenue by implementing new requirements.

Free checking accounts were a cash cow for many years, they are just less so for banks with assets over $10,000,000,000.00. They still gouge some customers for overdraft protection to the tune of $35 per occurance. So no need to cry for big banks, they are doing just fine thank you.

 

[Via]

Disclosure: I'm a banker.

Recent regulatory changes have made banking customers less profitable. Costs of managing accounts haven't decreased, but overdraft fees and debit interchange fees were a significant part of bank revenue for retail clients. Add to this that banks are flush with cash and earning 0.25% on the margin (Fed excess reserves), less FDIC assessments, and you have a $1,000 account that earns the bank $1.50 a year.

These fees are basically the bank giving the customer a choice: become a profitable client, or leave. ANY business would manage its customers this way. It seems like seeking profits is honourable, unless you're a financial institution, and then evil. But consider: Would you work for free?

There's an argument that "banks make plenty of money." I hear this as, "your other clients are profitable, so they should subsidize me."

Strange... I was under the impression banks made money by lending.

I also have to assume the cost of managing accounts has significantly decereased.