Many of the big banks still oppose the recent Dodd-Frank financial overhaul which was enacted last year, crying that it would hurt customers because they would be forced into a position to make up all of their supposed lost revenue by creating a whole bunch of new fees. Just think about that for a minute. Is your bank more worried about you as the customer or are they more worried about how they will hit Wall Street numbers so they can earn their bonuses while still using Government borrowed funds? And last but not least, they also want to be fully integrated to sell you investments, insurance, and a myriad of other services which they never even mention in the equation.
So, what can you count on coming down the pike at a big bank near you?
- Debit Card Fees – Do you really love that debit card you carry in your wallet? Hope you do because many of your banks may begin testing a monthly fee on those debit cards. In my opinion, they will figure out what amount per month you really won’t miss or watch on your statements (somewhere between $2 to $5 per month). Just take $50 per year over 5 million customers and you do the math.
- Statement Fees – Do you still want paper statements? Well, if you do it is likely going to cost you. The banks may bury this one underneath the ‘we want to be green’ initiative. However, it is really about dollars and cents. Expect monthly fee of $5 to $10 per month in the future if you want those monthly statements in the mail.
- Checking Account Fees – You better ask twice what the minimum balance needs to be on your checking account for the future. Banks may begin assessing a monthly fee if your account is below a minimum balance. Heck, some banks are tinkering with just plan flat out charging you a fee to have a checking account. Whatever happened to the free toaster? These monthly fees can range from $3 per month to some banks toying with charging $15 per month.
- Teller Fees – You mean you might have to actually pay a fee to talk to a live human being? Yes! Some big banks are looking at charging a fee if you need to use a teller to answer questions or go through more information on your account. Wow, that sounds like really personal service!
I’ve always recommended using smaller banks or community banks for many reasons, but now this adds another one to the list. Some of these smaller banks may need to institute fees as well, but look for a bank that isn’t going to try to cross sell you to an investment, insurance, or some other type of service. A bank really needs to be a bank which means you want them involved in deposit and lending, and not other ventures that may cost you even more down the road.
Forget about the free toaster and now forget about the free checking. Shoot, if we wait long enough there might just be a cover charge to get in the door. Add A Comment
Ted Jenkin, CFP®, AAMS®, AWMA®, CRPC®, CMFC®, CRPS®
Co-CEO and Founder oXYGen Financial, Inc.
oXYGen Financial, Inc. co-CEO Ted Jenkin is one of the foremost knowledgeable professionals in giving financial advice and Smart Money Moves to the X and Y Generation.
Phone 1.800.355.9318 or 770.777.0427
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