News, Banks Phasing Out Free Checking Accounts. (funds, pay, deposit)

[JD59]

Free checking, RIP. It was nice while it lasted.

Reversing a trend that began in the mid-1990s, big banks are imposing new fees on their least-profitable customers — those who want just a bare-bones checking account.

Free checking, banks: Big banks bringing back fees on basic checking accounts - latimes.com

[Themanwithnoname]

Credit unions.

[Willy702]

Lots of local and regional banks are taking advantage of this and offering what the big banks are getting rid of. Pretty easy to move on.

[Croye22]

Wait, they were free? News to me.

Seriously though, I'm already looking at a credit union right now. For all I care, the banks can choke up and close for all i care.

[PeteyNice]

I wouldn't say this is news. Some media outlet or another "discovers" this every few weeks.

Look, this isn't Internet service where you are limited to one or two options based on where you live, there are tons (TONS) of banks (regional banks, local banks, community banks, online banks) and credit unions that you can join. Some of them even let you deposit checks online by scanning them or taking a picture of them with your cell phone. Not to mention a lot of these places pay some interest on your checking account no matter how small the balance.

Honestly, I can only think of a few reasons to stick with a mega bank:

- You or your family works there. I get it, support your company.
- You have all of your accounts (mortgage, credit cards, investments, etc) there. Yeah, ok convenience has value but with so much competition out there you are probably throwing money away by doing this.
- You have a lot of recurring auto payments setup through this account/your debit card. Yeah, there is some work involved. Really though, I am not a fan of recurring payments. Too easy for the vendor to *********.


Everyone's situation is different and there is no one size fits all financial institution. However, here are some recommendations....

- You or someone in your family is current/ex military:
USAA http://www.usaa.com . Refunds ATM fees, deposit checks by cell phone/scanner

- You don't qualify for all of USAA's features, but the idea of scanning checks appeals to you
Alliant Credit Union Alliant Credit Union - A large fee free ATM network, check scanning

- You do your investing at Schwab, Fidelity or eTrade.
Schwab, Fidelity and eTrade offer compelling checking products with ATM refunds, free deposit envelopes and a small bit of interest on your balance.

- You absolutely have to have a physical branch to visit.
Find a credit union - Find a Credit Union

Don't just settle for one near you if it doesn't meet your needs. Many large credit union (but not Alliant) participate in shared branching that lets you do most activities at other credit unions.

This comes up often enough I think it may be worthwhile to have a sticky where we talk about alternatives.

[ylisa7]

Wow...people still write checks? I haven't written a check in over 10 years.

[dhanu86]

Originally Posted by John1960

Free checking, RIP. It was nice while it lasted.

Reversing a trend that began in the mid-1990s, big banks are imposing new fees on their least-profitable customers — those who want just a bare-bones checking account.

Free checking, banks: Big banks bringing back fees on basic checking accounts - latimes.com

I hope this is the first step to getting rid of this huge influence banks have on the world. Lets see how many people will pay to have an account and use their intangible products.

[Croye22]

My checking at Hell's Fargo says Free Checking right now. But I am keeping watch like a hawk.

Excellent post Pete, just what I needed.

[texdav]

It may get back to when even crdit union required a certain deposit amount in shares or later being a senior citizen.My credit union does not of as right now but i remmeber when it was true.Really no matter what we think nothig is really free;some pays.Just as crdit cards are now trying to get rid of custmers whose account is not worth the service fee.Alot of chnages coming really.

[Croye22]

It's what happens when regulation come into play. The only effective way to end the reign of terror on the banks is to stop giving them service and start standing up.