BoA is rolling out new debit card fees in 2012. Where you should switch to before!
Bank of America has announced that early in 2012 they will begin charging $5 a month for anyone using their debit cards. It doesn’t matter whether you make one transaction or 20–it will be $5 regardless. You can avoid this fee by not using your debit card, but that seems like an extreme measure to take. I’m sure many people will think that $5 is not a big deal, but if BoA announced they were going to charge you $60/yr to use your debit card would you care then? The $5 number just makes it sound not so bad.
It’s not surprising that BoA is making these changes. Several recent changes in legislature have decreased the amount that banks can charge businesses for processing their cards. Therefore in an attempt to recoup this lost revenue potential, banks are finding other income streams. The problem with this one is that rather than the businesses paying the fees, they’ve simply been handed down to the customer. Several banks have introduced similar fees and more will likely follow.
Bank of America already charges a monthly maintenance fee on the bulk of their basic accounts. Most customers don’t take take the time to search around and don’t realize that many prominent banking institutions still offer great services.
This topic came up recently in a business forum that I frequent and people were looking for alternatives. I’m actually quite excited about what I’ve learned because I’ll be better off than I was before!
The topic of Charles Schwab came up. For every negative comment there were about a dozen people ready to defend the institution they love so much. People mentioned their great customer service, willingness to lower commission fees, and other aspects. But the crux of their argument is that they offer the following:
When you look at that list, it’s amazing that Bank of America is even still operating. The same insurnace on your account, reimbursed ATM fees, no minimums or fees, and an account that earns interest!
There are a couple drawbacks but to me these are very small and well worth it. Number one, there are very few Charles Schwab brick and mortar institutions. Charles Schwab does most of its business online. There are brick and mortar institutions, but if you aren’t near one then you won’t be able to get that face-to-face customer service. However they make up for this with their great over-the-phone customer service.
The second drawback is that (from what I’ve read in forums but haven’t verified) you can’t deposit cash. You have to either transfer/wire the money, convert it to money order and mail it in, or deposit it at your local bank and write them a check. For me this isn’t a huge deal because I don’t think I’ve ever had a pile of cash that I wanted to deposit. But, lets say I did. I would simply find the cheapest bank near me, deposit the money into my account with that bank, and then transfer the money online to Charles Schwab. There’s a tad bit of hassle involved but it’s well worth it.
I haven’t yet opened my Charles Schwab checking account but I’ll certainly get to it before the new year and BoA’s fees roll in!
Educating yourself about college costs
Why educating yourself on college costs is so important.
Traditional IRA vs Roth IRA
The difference between the two retirement accounts and why you need to have one.
What does it take to become a professional poker player
Outlined, from my experience, are the steps one needs to take to become a professional poker player.
