Service Charge at Banks

CLEM · ‎03-09-2010

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?

Ibby114 · ‎03-10-2010

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.

Yahooey · ‎07-09-2010

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?

Bri36 · ‎02-20-2017

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

RetRN · ‎10-01-2013

Those darn banks can be sneaky with their service fees.

Kitlynn · ‎03-09-2010

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.

beckyb1012 · ‎03-09-2010

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.

"Live frugally, but love extravagantly."

CLEM · ‎03-09-2010

@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.