“Bank of America will start charging debit-card users $5 a month to pay for purchases. The move comes as the cards increasingly replace cash and as banks look for ways to offset the loss of revenue from a new rule that will limit how much they can collect from merchants.”
I was actually about to switch to BofA since it’s at the end of my street, because my credit union is so far away (ok it’s really only 20 minutes, but it’s out of my way whenever I need to go). And now I’m glad I didn’t because if they implemented this, then the list can go on forever and forever of what other fees they might add.
Also, there was a study that found that “45 percent of checking accounts are now free with no strings attached, down from 65 percent last year and 76 percent in 2009.” I honestly had no clue that anyone even paid for checking accounts still! I never have paid.
“The study also found that the total average cost for using an ATM rose to $3.81, from $3.74, the year before. The average overdraft fee inched up to $30.83, from $30.47.”
- My credit union charges to use other ATMs, and the charge is around $7, so I NEVER use an ATM, I never really need cash and when I do, I just go to Walgreens and buy a pack of gum or something that I need, and withdraw cash at the same time.
What do you think of this change? I heard that many more banks will probably follow due to the government limited the amount of money that banks can collect from retailers soon.
Would you change the way that you paid in order to get out of the $5 charge every time? I know I would.
Live Simply- Live We says
It is uncalled for. I have never liked BoA and I will never give them my business
I've actually had good experiences with BoA and really like the folks at my local branches. So my first course of action will be to see if they're willing (or even able too, I don't know how much leeway individual branches have with regard to policies) to waive the fee in order to keep my business. Otherwise, I'm taking my money elsewhere!
Mommy Saves ALOT!!! says
BoA is something else. Charging people to use their own money.I am not a member with them but I would move my money if I was….. $5 is ALOT of money to give to them as a fee each month.
Out My window says
B of A already has so much bad press I wonder if they can hold on? I do not use ATM's. I use cash. I don't have a debit card, I don't pay things on line. I use a check book for bills. Cash for gas and groceries. We live in a small town out west. I don't trust and I don't give people my money for fee's. You wait they will start charging to use one line bill pay to when they get every one hooked. It will be .50 or 1.00 a bill. You might as well use snail mail for the cost. As for the convenience. When you accidentally hit the send button twice and you house payment pulls twice good luck getting it back immediately if ever!
I am in the process of switching from TDCanada Trust where I pay about $16 per month in service charges to ING Direct which now offers a chequing account with no fees. A no fee account is a very rare thing in Canada.
I hate it, but unfortunately I am stuck as both my ex and I share an account we use to transfer money for our daughter. Bleh!
I try my very best to avoid paying any fees but it is hard when you live on a small island. I am one who believes banking should be free. Things like safety deposit boxes are ok to charge for but I think accounts and methods to withdraw money should all be free.
Wells Fargo has done the same thing, starting later this month I believe, a $3 debit card fee. I'm still keeping my account since all of my bills are set up for online bill pay, but my spending money (groceries, gas, etc.) will come from my Schwab account. They rebate all ATM fees, so ATM withdrawals are essentially free.
This is wild! I used to be a BoA customer, but I had so many bad experiences that I switched to a new bank (they once credited my $3K+ deposit to someone else's account and the only reason I was able to get my $$ back was because I had actually saved the small deposit receipt!!! They literally told me that there would have been nothing they could do if I hadn't had the receipt).I think this is another reason for how responsible credit card use can be beneficial. I have one card that I put literally everything I can on and pay it off every month. I get tons of cash back and I don't have to worry about fees. If I need cash, I just keep some out of my monthly deposits for the checks from my side gigs.
Best Merchant Accoun says
This is the very reason why I prefer credit cards than debit cards. Credit card benefits however are not for everyone. I'm not saying it is selective. What I am trying to say is the goodness of having a credit card depends on the one holding it. A credit card can be both and angel and a devil. Ir properly used(full payment everyone), once can have rewards and and high credit score. And we know what high credit score means… lower loan interests, lower mortgage interests and lower insurance premiums.Best regards,Belinda