Ellen isn't the only one annoyed by bank fees. Credit: Betsssssy/Flickr
Reader Ellen emailed me an inspiring story this morning.
Hi Julia: In questioning a rogue fee attached to my savings account, I found out that I fell prey to not reading the fine print, a.ka. “terms and conditions apply.” Sure the fee was only $9.00 but in this economy every dollar and cent charged by a bank deserves an explanation. What I found out floored me, though, given the greed of banks it probably shouldn’t have surprised me.Here goes.My account apparently charges $3.00 per withdrawal, up to three withdrawals. That explains the $9.00 fee. And yes, the nice customer service rep, explained that this was indeed embedded in the fine print, tha (insert sarcasm here) everyone has time to read with a fine-tooth comb.But it gets better. If you go over three withdrawals, the bank automatically converts your account to a checking!!! So much for the new banking rules.Not wanting to take out my disdain on an employee just trying to do her job (and avoid her own banking fees), I simply expressed to her that the policy seemed punitive, especially given the economy. Here we are not wanting to go in to our savings, trying to avoid using credit cards, and are penalized for trying to be good financial stewards.She agreed with me, said she hopes the bank will change this policy, and refunded me my bogus fees. I don’t consider the refund as much of a victory. I’d just like to see the policy changed.
What a story! I’m so glad you called and empowered yourself to find out more about your account and express your disapproval. I’m going to share this on the blog so others can be inspired, too. Thanks for sharing!Got a success story? Email me. Problems, failures, and dilemmas welcome, too!
Welcome to Bargain Babe! I’m Mara, and I’m so glad you’re here. I am an obsessive bargain hunter and penny pincher, and I am determined to live a full life without EVER paying full price.
Wish she had mention the name of the bank.
I found that most bank fees are debatable! It helps if you befriend your banker too 😉 I have a checking account that requires 5 debit card transactions per month if you don’t have a direct deposit set up. I have another checking account where my salary is direct deposited into, so I had to consciously use my card 5 times a month to avoid the fees. Well, two months in a row I got the $6 fee for not using it enough! I asked my banker what was up – I know one month I did fall short, but the other I hadn’t! He told me that it wasn’t a calendar month, but from one specific date (say, the 12th of the month to the 11th of the next month). He immediately reversed the fees because I wasn’t specifically told, and waived the 5-transaction minimum for the next 3 months 🙂
Bank of America
Here is the explanation of the fees off their Web site, and I was maintaining that minimum balance, too!
If you maintain a minimum daily balance of $2,500 or more in your savings account, you may make additional withdrawals/transfers with no Excess Withdrawal fee.
Otherwise, the Excess Withdrawal fee is $3.00 for each withdrawal/transfer during the statement cycle above the three. This fee applies to withdrawals and transfers at atms, teller lines, by telephone or by any other electronic means.
@Clementine I’m glad you caught the fees quickly. A lot of banks now require minimum balances for the account to really be free.
To me the only one to blame is yourself. As you explained in your story, you didnt read the fine print. The fine print is where all of the details and rules you must follow are explained and you should ALWAYS read this section. This is just another example of someone trying to blame someone else rather than take responsibility for their mistake.
If my bank wanted to charge me a $3 fee every time I made a withdrawal from a savings account I would move my money to my mattress. For the amount of interest banks are paying now, you are in effect getting negative interest.
If a $1000 savings account is paying a whopping 1 percent interest, it would take about a year to earn $10. That $10 would be eaten up by your 4th withdrawal during the year leaving you $2 behind or at $998 if you replaced the money shortly after taking it out.
@Myke Thanks for pointing out the ludicrous math behind this savings account. Ellen is probably better off finding a new account – assuming the bank doesn’t fine her for closing the account.
Myke:
Agreed! It gets better. Check out this article hot off the e-press!
http://finance.yahoo.com/news/Say-goodbye-to-traditional-apf-1888087707.html
My sarcastic sympathy to the poor banks losing fees. Wait’ll they lose more customers to credit unions, or as Myke says mattress banking.
Why is anyone still using banks? Credit Union are not-for-profit, federally insured and available to anyone. Check your yellow pages for area credit unions or join a huge one like Pentagon Federal Credit Union. PFCU is big enough to be able to give you great rates and still offer internet banking and the convenience of a local bank.
@Diane Great point! Credit Unions also have some of the highest interest rates around if you are willing to abide by the many rules, like using a debit card X many times per month, setting up direct deposit, using online banking, and other rules.
Because of the new laws banks will be charging for more services, so buyer beware, and don’t assume services that were once free will continue to be free. Banks are for profit co’s and they have to make money – so b/c laws were passed to ‘protect’ consumers who overdraw their accounts due to debit cards, everyone has to pay now….