No More Free Checking? Confusing Bank Letter.

[heydude]

I just received a letter from my bank that they are changing my free checking account in to a non free checking account. (they used a euphamism, hehe). Anyways, it says that the new account has a fee of 9 dollars per month.

Then it says, since I"m "such a good customer" that they are waiving this fee.

So what is the catch? Eliminate the fee waiver eventually? Seems scary to me. Are all banks ending free checking because of the whole debit card/credit card retailer law thing? that gives banks less money per swipe at the register?

Anyone know how to avoid all this game playing and what the games are?

[Greg44]

I know in our business the banks are charging now about the same with debit as they have been with credit card transactions. Everytime we swipe a card for the customer the bank charges us 3%. So you buy $ 150.00 worth of parts, the bank gets $ 4.50 of that sales, and each and every sale. Our CC fees to the banks run into the thousands each month!

We only get a couple 3 or 4 checks a day - and the rest are cards. The banks have to be making a killling on these fees.

[freein05]

My guess is new customers will have to pay the fee and the bank did not want to lose current customers by charging them the new fee. You are correct in that they can stop the fee waiver at any time with a 30 day notice. I read an article on a bank (can not remember the name) that is very sound and profitable and has been around for years. It did not have any problems in the last few years. It operates as an old fashioned commercial bank it makes loans to consumers and business. They use old fashioned credit standards and take in deposits to fund it's loans.

Most banks especially big banks make most of their money as trading income from derivatives and the other Wall Street junk. A bank making the majority of it's income from trading is gambling with taxpayers money guaranteeing it won't lose with FDIC insurance backing them.

[benhyr]

I read an article on a bank (can not remember the name) that is very sound and profitable and has been around for years. It did not have any problems in the last few years. It operates as an old fashioned commercial bank it makes loans to consumers and business. They use old fashioned credit standards and take in deposits to fund it's loans.

I'd highly recommend joining either a community bank (which largely operates as you described) or a credit union. I have my home loan through a community bank here and my money with a well-run local credit union.

[Shari]

What bank are you with dude?