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I've had a free checking account at Bank of the West since I retired almost 10 years ago. It's worked well. I believe I qualified for free checking because I have direct deposit of my SSDI and SSI payments.
Well last year when I heard that Bank of the West was merging with BMO which is owned by the Bank of Montreal, I knew it couldn't be good. Well I got the packet with my new account information and of course I was right, it is not good. I will now be charged $10 a month for my account. According to the packet the only way I can avoid the $10 monthly fee is to keep an average balance of $1,500 in my account.
Which is a very interesting number. Because I always keep my balance at the maximum allowed under my asset limitations to receive SSI. Which is $2,000 and hasn't changed since the 1980s. If adjusted for inflation that should be about $5,000 today. But Congress doesn't care enough to update it.
Anyway my average balance ranges between $1,250 to $1,450, so I will have to start paying $10 a month. As much as I would love to, I don't believe there is anyway for me to keep a $1,500 average balance in my account without going over my asset limitations and losing my SSI benefits.
I have to believe I'm not the only one in this predicament, and BMO knows fully well that their customers on SSI can't afford to keep $1,500 in their accounts and therefore will not qualify for free checking. It's just corrupt regulators and corrupt bankers conspiring to rip off low income individuals.
Maybe I'm wrong and there is some loophole that I'm missing that will allow me to keep my free checking, but I'm not seeing it. I guess I'll wait until I get hit with the first $10 fee, if I get hit with it. Then I will make the 100 mile drive to the nearest bank branch and see if someone there can help me get the fee waived, but I'm not optimistic about it.
I'm mostly just ranting, but if anyone has any ideas about it, I'd like to hear them. I really don't want to switch banks. I have a very low stress tolerance level. I deal with it, by just letting direct deposit and automatic payments take care of everything. I normally just login and check my balance once a month to make sure there are no unauthorized charges and my balance doesn't go over my asset limitations. I really don't feel dealing with changing banks and setting it all up again.
Have you actually spoken to a person at the takeover bank? There may be more than one way to avoid the charge.
If not, I suggest you don’t use the “I don’t want to” excuse to not find another bank. You will be surprised at how easy the new bank can switch everything for you.
Have you looked into BMO's website ? They appear to have a "Seniors" account where it says
"We will not charge the $5 monthly maintenance fee if ANY ONE of the following occurs during the statement period:
• The minimum daily Ledger Balance in this Account is $500 or more.
• This Account has Incoming External Deposits totaling $250 or more."
Good luck with the merger. The last 2 here in CT were/are disasters for many account holders. M&T bought Peoples last year , this year Webster bought Sterling National
Yeah it seems that the banks are doing everything they can to squeeze a few dollars out of the accounts of anyone and everyone except they're super high ticket accounts.
You said you didn't really know how you qualified for free checking - just think it is because of SS?
I have free checking with Wells Fargo - due to being a veteran. And also with USAA - but all their accounts are fee free. Also for military people and their families.
Have you looked into local credit unions? I hear good things about them. I switched my SS direct deposit to a small local bank after a large national online bank "lost" my deposit 2 out of 3 months. Much easier to deal with a local bank or CU.
Yes - USAA does not charge me ATM fees, whether I use theirs or not.
Not that they have many out there.
Question — does USAA not charge a fee, or do they reimburse the fee? To me, those are very different things.
I bank with Charles Schwab bank, and my fees are reimbursed. So if I take out $75 and I have to pay at 3.75 fee, I have to write in my checkbook register, $78.75. And at the end of the month I get the reimbursement of the 3.75 which I then add back in. It’s not a big deal if you have money in your account, but if you’re running really close to the edge, how fees are handled really matters.
Have you actually spoken to a person at the takeover bank? There may be more than one way to avoid the charge.
If not, I suggest you don’t use the “I don’t want to” excuse to not find another bank. You will be surprised at how easy the new bank can switch everything for you.
No I haven't talked to anyone. This information that they sent said, not to contact them. That the process would be automatic and they would transition my account to the appropriate BMO account, and I would receive the information. I did receive the account information, but it doesn't look the same.
As for the ease of changing banks, that is not the problem. The problem is changing all of my direct deposits and automatic payments. That is not something I want to do unless I absolutely have to. Then even if I change banks, it will just happen again with the next merger.
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Solly says — Be nice!
