topic Re: Service Charge at Banks in Community Chat

Service Charge at Banks

CLEM — Thu, 10 Aug 2017 19:06:54 GMT

I have a small savings account away from my regular bank at a Savings Bank for emergencies. I haven't added anything lately, but I also haven't made any withdrawals. All of a sudden they charged me $35.00/month dormancy fee. At other banks I have been charged $5.00/year for that same reason.

How can a savings bank charge $420/year for an account the money of which is already earning them money.

I closed the account and the manager credited the fee back to me.

Has anyone else had this kind of experience?

Re: Service Charge at Banks

Ibby114 — Thu, 10 Aug 2017 19:16:55 GMT

Banks should warn you when they might start charging a 'dormant' fee. My credit union at work gave me several months notice so now I direct deposit a few dollars from each paycheck to avoid the fee.

Re: Service Charge at Banks

Yahooey — Thu, 10 Aug 2017 19:24:44 GMT

I was never charged a fee but have gotten a letter or email requesting that I alert them I was still alive or something of that fact. The account was not small (not huge either), maybe that was why there wasn't a fee?

Re: Service Charge at Banks

Bri36 — Thu, 10 Aug 2017 19:26:00 GMT

$35.00 a month is a lot. I thought it was $3.50 a month at first.

Re: Service Charge at Banks

RetRN — Thu, 10 Aug 2017 19:28:12 GMT

Those darn banks can be sneaky with their service fees.

Re: Service Charge at Banks

Kitlynn — Thu, 10 Aug 2017 19:29:52 GMT

My eighty six year old Mother just closed her savings account out for the very reason that they were charging her $4.00 every time it went below a certain amount. She just put what she calls her mad money in there so she decided that cash in a safe would be better at least she wounldn't be paying the bank her money for just having it basically stashed there.

Re: Service Charge at Banks

beckyb1012 — Thu, 10 Aug 2017 19:39:10 GMT

Back in 2011 my bank started charging $10.00 per month if you dropped below $1500.00 so the day before it went into effect I put the 1500. in and did not record in my ledger. Just made myself forget about it. I knew saving that $10.00 per month would make me more money than any monthly interest of the 1500.00 that just sits in my checking account for almost 6 years now. I did cancel my ATM card when they started charging a $1.00 a month for that. Cheaper than dirt and proud of it.

Re: Service Charge at Banks

CLEM — Thu, 10 Aug 2017 19:43:20 GMT

@Yahooey wrote:
I was never charged a fee but have gotten a letter or email requesting that I alert them I was still alive or something of that fact. The account was not small (not huge either), maybe that was why there wasn't a fee?

@Yahooey It wasn't that small - in the low 5 figures plus I had a CD with them. Closed both out. Penalty wasn't that much for closing the CD. Found a bank that will give me a higher interest rate for CD and I will earn back what I have lost by withdrawing early.

Re: Service Charge at Banks

Yahooey — Thu, 10 Aug 2017 19:45:43 GMT

@CLEM

This is all I have to say about your bank - btw - i sent u a few comments on the kitteh thread

Re: Service Charge at Banks

CLEM — Thu, 10 Aug 2017 19:48:23 GMT

@YahooeyThat's where they belong.

Whatever happened to banks being grateful and giving you a toaster just for opening an account with a small amount of money.

Re: Service Charge at Banks

CLEM — Thu, 10 Aug 2017 19:55:44 GMT

Anyone looking for a bank with a great interest rate, I found Goldman Sachs on line. 1.2% interest on savings accounts and 2.2 interest on a CD.

It's all done on line and their website is the easiest to navigate. I had opened a CD July 24 and they sent me a notification that they have updated it. When I checked, I could see the interest earned for the one week in July. I think that's neat to be able to actually see my money grow every month.

Re: Service Charge at Banks

Yahooey — Thu, 10 Aug 2017 19:59:24 GMT

@CLEM

I remember going to a Bowery Bank in the 60s, it was magnificent. Large dome with marble pillars and floors. Everything echoed when I click click across the floors with the metal taps on my shoes. Of course I also got a lollipop from the security guard.

Yeah, it went downhill once they stopped giving out lollipops. Commerce tried implementing that but they only gave out red ones, my favs were lime and lemon.

I remembered when my much older sis and mom would move money around for free stuff like TVs, VCRs, Cookie Jars etc. It was a free for all in the 80s and interest rates were high. I think I earn more interest now if I stick it under my mattress.

Re: Service Charge at Banks

Yahooey — Thu, 10 Aug 2017 20:04:05 GMT

@CLEM

When I was in grade school, there was a weekly collection of the bankbooks to be deposited. I always had a dollor in the clear window of the envelope and then it grew to 2 dollars a week. It taught me to save and I love looking at my name on the official bankbook and interest it accumulated. I was 6 when I started that bankbook and then continued depositing on my own when I stopped going to the elementary school.

Re: Service Charge at Banks

gidgetgh — Thu, 10 Aug 2017 20:04:37 GMT

@CLEM wrote:
Anyone looking for a bank with a great interest rate, I found Goldman Sachs on line. 1.2% interest on savings accounts and 2.2 interest on a CD.

It's all done on line and their website is the easiest to navigate. I had opened a CD July 24 and they sent me a notification that they have updated it. When I checked, I could see the interest earned for the one week in July. I think that's neat to be able to actually see my money grow every month.

@CLEM- what's the term length on the cd?

We have an online money market with American Express. They're currently paying 1.05 (yield).

Have a local cd paying 1.25% for 18 months and one laying 1.0% for 11 months. Two Different banks.

Re: Service Charge at Banks

excpa — Thu, 10 Aug 2017 20:29:05 GMT

I remember when you got a $5 monthly credit if you had direct withdrawal from your bank account. Now they are charging $5/month for direct withdrawl because iof all the "extra paper work involved". I paid my insurance premiums for the full year and saved $120. There was no notice of this change. Good old Hartford strikes again.

Re: Service Charge at Banks

viva923 — Thu, 10 Aug 2017 20:30:40 GMT

anyway a bank can make money. Rob from the poor to make the rich more wealthy

Re: Service Charge at Banks

SeaMaiden — Thu, 10 Aug 2017 21:25:38 GMT

Bank Of America charges a monthly account fee for checking if you fall below a certain threshold $$$ in your accounts. I believe it is 50 thousand total between checking and savings to have free checking, free checks etc. Falling below this amount a fee will incur monthly.

Re: Service Charge at Banks

software — Thu, 10 Aug 2017 21:32:07 GMT

Do people keep that much money in a bank account?

I wouldn't

Bank on every corner,shop around

@SeaMaiden

Re: Service Charge at Banks

CLEM — Thu, 10 Aug 2017 23:22:20 GMT

@gidgetgh wrote:

@CLEM- what's the term length on the cd?

We have an online money market with American Express. They're currently paying 1.05 (yield).

Have a local cd paying 1.25% for 18 months and one laying 1.0% for 11 months. Two Different banks.

@gidgetgh I tried to copy and paste their schedule,but it didn't work. Here is the link to their site: GSbank dot com
click on Savings Products and then click on CD or Savings or whatever you are looking for. It's worth it.

Re: Service Charge at Banks

Carmie — Thu, 10 Aug 2017 23:27:33 GMT

I use a Credit Union. There is never any fees . I gave up on Banks years ago.