Does every bank have fees?

[amastewa93]

Staff are under fierce pressure to increase profits at all banks. Did you see the latest fine charged to Wells Fargo Bank?

I recently got an email from Wells Fargo about some money they supposedly owed me... I was concerned it may have been a scam because I've not banked with them for a few years. Apparently it is legit though.



Update: I have called BOA and made some changes to my account that should result in no fees. At the time of opening the account, my finances were a bit different so the account type needed to be changed, I think. Anybody else have to change the TYPE of account like that?

[disneysteve]

Update: I have called BOA and made some changes to my account that should result in no fees.

Excellent! That was pretty easy. Good for you.

[msomnipotent]

I recently got an email from Wells Fargo about some money they supposedly owed me... I was concerned it may have been a scam because I've not banked with them for a few years. Apparently it is legit though.



Update: I have called BOA and made some changes to my account that should result in no fees. At the time of opening the account, my finances were a bit different so the account type needed to be changed, I think. Anybody else have to change the TYPE of account like that?

Good!

We had to change accounts once when the TCF manager called us to let us know our interest bearing checking account would have a fee unless we kept $10,000 in there. It wasn't enough interest for our liking so he moved us to the free checking with no interest.

[amastewa93]

Good!

We had to change accounts once when the TCF manager called us to let us know our interest bearing checking account would have a fee unless we kept $10,000 in there. It wasn't enough interest for our liking so he moved us to the free checking with no interest.

Totally makes sense! That was essentially what was happening with the BOA savings account. I don't use it as my primary savings - I just allow the "keep the change" to stay in there and pile up, then I transfer it to my credit union once I have a couple hundred dollars in there.

With the checking account - I'd apparently signed up for one that required at least one direct deposit per month (which I no longer have).

[TexasHusker]

Like any other business, banks have to make a profit to survive. Many folks look at banks like a governmental institution such as the postal service - a sort of community service that is just there for the good of the citizenry.

The fact is, banks are in business to make money just like GM, McDonalds, and Wal-Mart.

Banks get their revenue streams from fees...and...drumroll...ALL BANKS CHARGE THEM! Oh the horror!

Fees from ATMs, checking accounts, savings accounts, loan origination, overdraft, stop payment, bank wire, frequent activity - all sorts of fees, fees, fees!

They also make money by borrowing your and my money for little to no interest, and then lending it out to someone else with interest!

That's just what banks do, and there's nothing inherently immoral, unethical, or evil about it, any more than you paying two dollars for a cup of coffee at McDonalds when it likely cost them a nickel or less.

Credit Unions do offer better deals, in some cases. But Credit Unions are not banks, when it comes to real lending power and flexibility. They are great for car loans and a savings account, but when it comes to more involved banking - lines of credit, business loans, often mortgage loans, and other complexities, they don't cut it. It would be like asking Subway to cater your company banquet. Your local Credit Union won't be backing that new shopping center opening up down the street. It will likely be Chase or BofA, or perhaps a large local bank.

[james.hendrickson]

Like any other business, banks have to make a profit to survive. Many folks look at banks like a governmental institution such as the postal service - a sort of community service that is just there for the good of the citizenry.

The fact is, banks are in business to make money just like GM, McDonalds, and Wal-Mart.

Banks get their revenue streams from fees...and...drumroll...ALL BANKS CHARGE THEM! Oh the horror!

Fees from ATMs, checking accounts, savings accounts, loan origination, overdraft, stop payment, bank wire, frequent activity - all sorts of fees, fees, fees!

They also make money by borrowing your and my money for little to no interest, and then lending it out to someone else with interest!

That's just what banks do, and there's nothing inherently immoral, unethical, or evil about it, any more than you paying two dollars for a cup of coffee at McDonalds when it likely cost them a nickel or less.

Credit Unions do offer better deals, in some cases. But Credit Unions are not banks, when it comes to real lending power and flexibility. They are great for car loans and a savings account, but when it comes to more involved banking - lines of credit, business loans, often mortgage loans, and other complexities, they don't cut it. It would be like asking Subway to cater your company banquet. Your local Credit Union won't be backing that new shopping center opening up down the street. It will likely be Chase or BofA, or perhaps a large local bank.

Texas, other than overly digressive regulation of the finance industry, is there any part of the banking fee business that you do find improper?

[TexasHusker]

Texas, other than overly digressive regulation of the finance industry, is there any part of the banking fee business that you do find improper?

If the bank fully discloses the fee(s), there is nothing improper about it. Folks griping about ATM fees, I just don't get. I need $100 cash. So the ATM is offering it to me for a $3 fee. So what? That's their right. That's a machine full of $100 bills sitting right there. Lots of risk and expense, not to mention investment. I shouldn't complain about a $3 fee for a machine to dispense cash to me on demand. That is just silliness.

If I need my lawn mowed, I can ask 5 folks to come and give me bids. "John" gives me a bid of $20, "Joe" gives me a bid of $100. If I go with Joe, that's my business. He isn't at fault for charging me 5 times as much as John. He is free to charge what he wants, and if I select him, then so be it. And if I didn't take the time to get 5 bids and I only asked Joe to cut the grass and he charged me $100, that's just me being lazy and stupid (which I am from time to time).

The biggest problems in banking have been caused by regulation and over-zealous bureaucrats and politicians, not by the banks themselves. Congress is more culpable in the 2008 housing crash than any lender ever was.

[disneysteve]

The fact is, banks are in business to make money just like GM, McDonalds, and Wal-Mart.

Banks get their revenue streams from fees

They also make money by borrowing your and my money for little to no interest, and then lending it out to someone else with interest!

That's just what banks do, and there's nothing inherently immoral, unethical, or evil about it

I completely agree with all of this.

That said, this site is called Saving Advice. If I can find ways to do all of my banking for free, I'm going to do it. And yes, I realize that ultimately nothing is ever truly free. For example, I do have free checking but it also pays no interest so the bank is getting use of my money without paying me a penny. But I pay absolutely no fees for anything related to my account so it's free in that regard.

I see no reason why anyone should willingly stick with a bank account that is charging them $5 or $20 each month when there are numerous free options out there. Clearly, those other banks feel they are making more than enough in other ways that they don't need to impose those particular fees on their customers.

[Captain Save]

I completely agree with all of this.

That said, this site is called Saving Advice. If I can find ways to do all of my banking for free, I'm going to do it. And yes, I realize that ultimately nothing is ever truly free. For example, I do have free checking but it also pays no interest so the bank is getting use of my money without paying me a penny. But I pay absolutely no fees for anything related to my account so it's free in that regard.

I see no reason why anyone should willingly stick with a bank account that is charging them $5 or $20 each month when there are numerous free options out there. Clearly, those other banks feel they are making more than enough in other ways that they don't need to impose those particular fees on their customers.

I agree with both of you .. Banks are a business and they are here to make money .. and competition is what drives capitalism. So if there is a cheaper alternative .. go for it .. as long as it works for you.

BofA is not the cheapest but what they have is a presence on every corner in my city, I'm paying for the convenience.. their customer service lags but I rarely need to ever go to a bank but I like having an ATM close by.

I plan on leaving but I know I'll be giving that up so I'm looking for banks that offer free ATMs up to a certain amount per month.

[corn18]

The biggest problems in banking have been caused by regulation and over-zealous bureaucrats and politicians, not by the banks themselves. Congress is more culpable in the 2008 housing crash than any lender ever was.

This is completely wrong. The banks failed in 2008 due to risky investments, specifically, buying and selling bad debt and even worse, buying derivatives based on that bad debt. It's their own damn greed that created the great recession, not the USG.

[disneysteve]

BofA is not the cheapest

BoA is totally free for me so I'm not sure how anything else could be any cheaper. They have great online banking. They have great mobile banking. They have branches and ATMs all around the country. And on the rare occasion that I've needed to call customer service, I've always been very satisfied with their service.

[TexasHusker]

This is completely wrong. The banks failed in 2008 due to risky investments, specifically, buying and selling bad debt and even worse, buying derivatives based on that bad debt. It's their own damn greed that created the great recession, not the USG.

The root of it is that a Democrat Congress vilified Freddie and Fannie for their tight lending standards and down payment requirements, thus not allowing all good folks to buy a home. When Congress forced Freddie and Fannie to start giving 100% loans, the bubble began to inflate. And it will happen again, but thankfully not any time soon. Lending is still reasonably tight, with stronger down payment requirements.

When you can borrow for free, with no skin of your own in the game, you have runaway inflation and fraud, just like higher education finance currently. The government needs to get "all in" or "all out". There can be no middle ground without disastrous results.

[TexasHusker]

I completely agree with all of this.

That said, this site is called Saving Advice. If I can find ways to do all of my banking for free, I'm going to do it. And yes, I realize that ultimately nothing is ever truly free. For example, I do have free checking but it also pays no interest so the bank is getting use of my money without paying me a penny. But I pay absolutely no fees for anything related to my account so it's free in that regard.

I see no reason why anyone should willingly stick with a bank account that is charging them $5 or $20 each month when there are numerous free options out there. Clearly, those other banks feel they are making more than enough in other ways that they don't need to impose those particular fees on their customers.

It's only prudent to shop for the right fit for a bank, a car, a house, or anything else. Cheapest doesn't always mean best, because everyone's needs are different.

[corn18]

The root of it is that a Democrat Congress vilified Freddie and Fannie for their tight lending standards and down payment requirements, thus not allowing all good folks to buy a home. When Congress forced Freddie and Fannie to start giving 100% loans, the bubble began to inflate. And it will happen again, but thankfully not any time soon. Lending is still reasonably tight, with stronger down payment requirements.

When you can borrow for free, with no skin of your own in the game, you have runaway inflation and fraud, just like higher education finance currently. The government needs to get "all in" or "all out". There can be no middle ground without disastrous results.

Huh? Where is this runaway inflation of which you speak? We had deflation in 2009. You do like to spew out a lot of generalities.

[TexasHusker]

I’m referring to home prices, my friend.