How to fight back against the rising cost of banking
You can expect higher bank fees in the new year. A customer backlash forced the big banks to roll-back their planned debit card fees.
But experts predict they will bring in more money in other ways. For example, look for higher maintenance fees and higher minimum deposit requirements.
Here are some tips on how to fight the escalating cost of banking.
Taylor Kirk says she joined a credit union because she couldn't afford to open an account at a major bank.
"The fees were really outrageous for me, and the amount that I had to put in was too much," Kirk said.
And consumer Reports finds bank fees are showing no signs of letting up.
"The majority of banks now charge a fee for non-interest checking accounts. Two years ago, most of those accounts were free," said Kim Kleman of Consumer Reports. "Overdraft charges and ATM fees are also at record highs."
And banks are adding other fees. For example, Bank of America now charges e-bank customers $8.95 a month to use a teller. PNC and U.S. Bank charge $25 to close an account open less than six months.
"You can fight back," Kleman said. "If you're hit with a fee, ask your bank to waive it. If that doesn't work, threaten to move your account."
If you decide to make a move, consider a big credit union. Fees for basic checking at major credit unions are 42 percent lower on average than at big banks.
"Credit unions used to just serve small groups, but that's changed. Now it's pretty easy to find one you can join," Kleman said.
Before changing banks, check to see if your bank charges a closing fee. Make sure all outstanding checks are paid, and switch over automatic deposits and bill payments.
Kirk says she's happy she chose a credit union.
"The locations aren't as plentiful as with a big bank. But honestly, it's worth it," she said.
More information:
Watch for new bank fees
But experts predict they will bring in more money in other ways. For example, look for higher maintenance fees and higher minimum deposit requirements.
Here are some tips on how to fight the escalating cost of banking.
Taylor Kirk says she joined a credit union because she couldn't afford to open an account at a major bank.
"The fees were really outrageous for me, and the amount that I had to put in was too much," Kirk said.
And consumer Reports finds bank fees are showing no signs of letting up.
"The majority of banks now charge a fee for non-interest checking accounts. Two years ago, most of those accounts were free," said Kim Kleman of Consumer Reports. "Overdraft charges and ATM fees are also at record highs."
And banks are adding other fees. For example, Bank of America now charges e-bank customers $8.95 a month to use a teller. PNC and U.S. Bank charge $25 to close an account open less than six months.
"You can fight back," Kleman said. "If you're hit with a fee, ask your bank to waive it. If that doesn't work, threaten to move your account."
If you decide to make a move, consider a big credit union. Fees for basic checking at major credit unions are 42 percent lower on average than at big banks.
"Credit unions used to just serve small groups, but that's changed. Now it's pretty easy to find one you can join," Kleman said.
Before changing banks, check to see if your bank charges a closing fee. Make sure all outstanding checks are paid, and switch over automatic deposits and bill payments.
Kirk says she's happy she chose a credit union.
"The locations aren't as plentiful as with a big bank. But honestly, it's worth it," she said.
More information:
Watch for new bank fees
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