[Update October 5th, 2011: Citi checking accounts added to the naughty list.]
Sick of the checking account and debit usage fees? We’ve got good news: there are alternatives. Look, we’ve been saying sayonara to debit rewards programs and truly free checking for months, and now some big bank customers are about to get slapped with even more fees. Beginning in 2012, Bank of America will begin charging a $5 monthly debit card fee, levied every month that you use your debit card, even if it’s just for a cup of coffee. Chase and Wells Fargo are also piloting $3 debit usage fees in some parts of the U.S.
Ouch, right? It’s not like banks don’t already make money on your checking account. Yeah, we know there’s a swipe fee cap now, and banks are trying to make extra money any way they can, but we still don’t like where this is going. Next year, it’s going to cost $60 a year to actually use your BofA debit card. That hardly seems fair.
Don’t like it? Do something about it!
All this bad press has many people thinking that banks just don’t care about them anymore. But it’s important to keep things in perspective. Even though banks are for-profit institutions, not all of them are going to screw you over. Furthermore, if you don’t like the way your bank is treating you, you can leave!
It may seem that you’ll be charged heavy fees no matter where you go. The banks charging those fees certainly want you to think so. But if you’re looking for better treatment, you’d better believe it’s out there. If you’re in the market for a checking account that won’t surprise you with fees, we’d like to introduce you to few accounts worth checking out.
The no-debit usage fee ones each have their own merits, whether it’s monthly fees that are relatively easy to avoid, no monthly fees at all, or even rewards for using your debit card. And as a comparison, take a look at the now-infamous BofA, Chase and Wells Fargo checking accounts.
Below are some comparisons of basic checking accounts at major banks. A quick glance and you’ll see that with the exception of PerkStreet Financial, fees are higher across the board. Some checking accounts have gone for a no-holds-barred, screw-the-customer, Netflix-style anti-PR campaign, but thankfully, a couple still care about their customers.
Banks without debit card fees
[Update October 5th: Citi just raised its checking account fees, reflected here]
| US Bank Easy Checking |
Citibank Basic Checking |
PerkStreet Checking |
|
|---|---|---|---|
| Monthly Fee | $6.95 (e-statements) or $8.95 (paper) | $8 $10 | $0 |
| Ways to Avoid Fee | $500+ direct deposit OR $1,500 average daily balance |
5 qualifying transactions $1,500 average monthly balance OR direct deposit AND bill payment |
N/A |
| Out-of-Network ATM Fee (U.S.) | $2.50 | $2 | $2 |
| Insufficient Funds Fee | $10 for overdrafts up to $20, $33 for higher overdrafts | $34 | $32 |
Banks with planned debit card fees
| BofA MyAccess Checking |
Wells Fargo Value Checking |
Chase Total Checking |
|
|---|---|---|---|
| Monthly Fee | $12 | $5 | $10 |
| Ways to Avoid Fee | $250+ direct deposit OR $1,500 average daily balance |
$250+ direct deposit OR $1,500 average daily balance |
$500+ direct deposit OR $1,500 average daily balance |
| Debit Usage Fee | $5 | $3* | $3* |
| Out-of-Network ATM Fee (U.S.) | $2 | $2.50 | $2 |
| Insufficient Funds Fee | $35 | $25 first time each year, $35 thereafter |
$34 |
*Pilot
Editor’s Picks
Online banking and its perks
Our personal favorite online checking account is PerkStreet Financial. There’s no monthly fee at all, no minimum balance requirement, and no ATM fees as long as you get your cash from within the STAR network, which has 37,000 ATMs in the US.
Here’s the best part: no matter how much you have in your account, you’ll get some cash back for debit card purchases: 1% rewards if your balance is less than $5,000 and 2% otherwise, and for the first 90 days your account is active. At the same time that some banks who shall remain nameless are charging you for using your debit card, PerkStreet is actually rewarding you.
| PerkStreet Financial℠ Debit MasterCard® | |||||||||||||
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Bonuses for the really big savers
Citibank got a lot of press recently for raising its fees, minimum balance requirements or both on its basic banking packages. But for those with a lot of money in their checking accounts, Citi’s willing to put on a good front.
Through the month of October, Citibank is offering a special promotion: open a qualifying checking account, and get $200-$400 in gift cards.
You’ll get $200 worth of gift cards when you open a Citibank checking account. The minimum balance to avoid the $20 monthly fee is $6,000. Alternatively, you can get $400 worth of gift cards and open a Citigold Interest checking account, but be careful with this one; you’ll have to have a $50,000 minimum monthly balance to avoid the $30 monthly fee. As you may have guessed, these accounts are best if you’re a big saver. If not, PerkStreet’s probably your best bet for avoiding fees and getting rewards.
Check out our checking account finder to find the right account for you!