Bank of America to charge $5 debit card fee

[dmcowen674]

Don't have BofA, but got a letter from Citibank (who I have used for close to 20 years now) yesterday, that said that they're changing their checking accounts.

Now, if you don't maintain $6000 minimum balance in your deposit account(s) (can be a combination of accounts), or you pay a flat $15 monthly fee.

It's very clear that banks are only for the rich.

 

[dank69]

This is what I thought.... Don't banks make their real money by using the money we "loan" them for investment purposes? I ask b/c I do not know.

They used to, but some of them got so greedy (BoA included) they destroyed the economy to the point that they can't even make a profit lending money anymore. Interest rates are too low.

 

[spittledip]

They used to, but some of them got so greedy (BoA included) they destroyed the economy to the point that they can't even make a profit lending money anymore. Interest rates are too low.

I was talking more about money that we let sit in the bank that they use for investment purposes. Is that a significant portion of their income?

 

[Attic]

I'm guessing you've never heard of BoA's "keep the change" program.

Interesting name for the program because "keep the change" refers to a small gift to someone. This program doesn't gift the customer any change for each transaction.

That program just rounds up individual debit card transactions to the next whole dollar amount and transfers that amount from a users checking account to a savings account. It doesn't give the customer anything other than a savings account bonus match after 3 months, which is a savings account incentive (most banks offer somthing similar) as opposed to a debit card use reward.

 

[uli2000]

Avoiding debit cards is the way to go. There's zero advantage to debit card use versus responsible CC use.

:thumbsup: The past few months I've gone to using my AmEx for almost all my purchases and just pay it off at the end of the month. Racking up cash back hand over fist. I have a BofA checking account as my main checking account (only bank in town) and with this, I'm just gonna cancel my debit cards and get atm cards and use the AmEx for everything else.

 

[lothar]

Interesting name for the program because "keep the change" refers to a small gift to someone. This program doesn't gift the customer any change for each transaction.

That program just rounds up individual debit card transactions to the next whole dollar amount and transfers that amount from a users checking account to a savings account. It doesn't give the customer anything other than a savings account bonus match after 3 months, which is a savings account incentive (most banks offer something similar) as opposed to a debit card use reward.

I suppose all the people doing this on Fatwallet Finance are stupid then?
If what you described is true, then that means there are a lot of stupid people on Fatwallet taking advantage of $250/yr.

What you described sounds like WellsFargo's "Wells2save" program.
I use CC for everything...Don't care about "keep the change" or "wells2save".
My 5% cashback credit card earns me more cashback than any stupid programs.

 

[her209]

I suppose all the people doing this on Fatwallet Finance are stupid then?
If what you described is true, then that means there are a lot of stupid people on Fatwallet taking advantage of $250/yr.

I can confirm what Attic says its true. When you enrolled in the "Keep the Change" program, every time you used your debit card, BoA would debit the amount and pay the vendor. But they'd debit the change as if you'd paid the dollar amount and deposit difference into your savings account. IIRC, after the first year you were enrolled, BoA would match the change that was saved for the year. For the subsequent years, I don't remember if they matched or not.

 

[lothar]

I can confirm what Attic says its true. When you enrolled in the "Keep the Change" program, every time you used your debit card, BoA would debit the amount and pay the vendor. But they'd debit the change as if you'd paid the dollar amount and deposit difference into your savings account. IIRC, after the first year you were enrolled, BoA would match the change that was saved for the year. For the subsequent years, I don't remember if they matched or not.

So if they debited $250 from your checking to savings(your own money), and they matched that same amount by giving you an extra $250 through KTC matching.
$250 - this new $60 debit card fee = $190...You still come out on top versus paying with cash or writing checks.

If they don't match it for subsequent years, close your account and open a new one.
Rinse and repeat?

 

[Doppel]

So if they debited $250 from your checking to savings(your own money), and they matched that same amount by giving you an extra $250 through KTC matching.
$250 - this new $60 debit card fee = $190...You still come out on top versus paying with cash or writing checks.

If they don't match it for subsequent years, close your account and open a new one.
Rinse and repeat?

yeah it sounds sweet and thus I can only assume it's no longer in practice or in some other way unattainable.

The only constant in banking is the change that require consumers to chase this crap down. It's why I gave up on rewards cards for years. They kept being only teasers or 5% one month for home improvement and 5% next month was only at massage parlors, etc. Penfed credit union has a 5% gas card (I actually got it) and appears to have been in its current form for years.

 

[lothar]

yeah it sounds sweet and thus I can only assume it's no longer in practice or in some other way unattainable.

The only constant in banking is the change that require consumers to chase this crap down. It's why I gave up on rewards cards for years. They kept being only teasers or 5% one month for home improvement and 5% next month was only at massage parlors, etc. Penfed credit union has a 5% gas card (I actually got it) and appears to have been in its current form for years.

There are lots of cards that have good rewards, and there are lots of people with grandfathered credit card accounts that were never changed.
I like actual cash in my hand, not chasing points or frequent flyer miles. I also don't do teaser rates.

PenFed is one of my most important cards. It serves as my 5% gas cashback and "free cellphone insurance" card.

 

[Budmantom]

http://finance.yahoo.com/news/Bank-of-America-to-charge-5-apf-1381425092.html



Bastards! You bail them out of their misery, and then they come back and start to nickel and dime you!

The dumbest of the dumb in our society are against the banks when they should be upset with our government for changing the rules again.

What can you expect with the Obama voting block.

 

[Budmantom]

It's very clear that banks are only for the rich.

Just like our president.

 

[pcgeek11]

It's very clear that banks are only for the rich.

Wow I must be uber rich. I have way more than $6,000 in my accounts. I have that in my checking account alone.