Starting in 2012 if you use a Bank of America debit card you’ll pay a $5 a month fee for using the card. It doesn’t matter if you use the debit or credit option or if you use the card once or twenty times a month you’ll pay the same $5 fee. Ironically, people with premium accounts do not have to pay the fee, so the people who can easily afford $5 a month don’t have to pay it.
When I first read this news I was irritated about the fee, but then I realized that no one has to use Bank of America. Many credit unions and smaller banks don’t charge any fees and have the same benefits (if not more) than the larger banks.
I’m not a Bank of America customer, but if I was I wouldn’t be in 2012. What about you?
I recently saw this and I AM a Bank of America user. I also am thinking very seriously about switching accounts. This is just ridiculous to me and it’s not the first time I’ve been irate with Bank of America. Still, I recognize I made a choice not to change yet, but this one right here is about to put me right over the top.
Boo, Bank of America!!
My husband and I are currently Bank of America customers. We have a premium account so the fees would not affect us but we are looking for a new bank. We have talked about switching ever since the bailout but have been looking for the right motivation to actually take the leap! I think this is it.
We were already planning to close our BoA account prior to this announcement, but if we weren’t, I can guarantee I wouldn’t be paying the fee!
Yeah, I hear ya. But I do have to differ on one point. We have a prima account and I wouldn’t say that I “can easily afford $5 a month.”
Leave it to Bank of America (or Bank of India as my husband refers to it because we never talk to anyone in America when we call their 800 numbers, ironically!!!) to start charging a fee like that! Our mortgage was sold to them a few years ago and I hate it! I wish we were in a position to refinance somewhere else and leave them for good, but until then I’m glad we don’t have a checking account with them!
That is totally crazy. They are going to loose a lot of business that way.
Hopefully they decide it’s not worth it.
Thanks for your blog.
I know what you mean…
I no longer have BOA accounts (mainly because my husband manages a credit union, so…
) Anyway, it doesn’t actually bother me, to be honest. Banks are businesses. They earn income, and stay in business, from the customers who have either large balances, investments, or loans/mortgages with them. The customer who averages $25 in a basic account? Costs more to service than they bring in income. I know that sounds harsh, but it’s the truth. I understand why people are upset and don’t like it… but I guess I’m just cynical enough to not be surprised, so I can just shrug about it.
Does no one remember when they first introduced the idea of a debit card, to be used for purchases at stores instead of just as an ATM card? They charged then too. I remember because I got something like 5 transactions free per month with my account.
We have a B of A account, a few of them actually, but it’s not our main account. Will definitely be rethinking our use. Our mortgage was sold to them a few years ago so I like having another account with them because it makes it easier to transfer funds.
Instead of getting diddled with fees here and there I’d much rather they charge a flat rate. When I lived in NZ we had higher bank fees but it was all-inclusive so we weren’t surprised at the end of the month.
We left BoA awhile ago and I’m so glad we did!
It’s surprising to me that people still use bank of America with all the things they do. I use a local credit union and love it, but make sure you research first, I’ve heard some of them charge these nonsense fees as well. One Company I’ve been paying attention to is bank simple, which is supposed to be fee free, but they haven’t launched yet. I’m definitely waiting impatiently though!
I am a BOA customer and have just decided we are done with them by the end of the week. The beginning steps have been taken and we are done. We are going to a smaller, local bank and will be done with them.
We have actually decided to go with Perk Street and a smaller local bank for business.
I can’t get upset about it, but I don’t bank there either. But when you take money away from banks in one way, what can you expect? They are in business to make (gasp) money! With new legislation taking away BILLIONS of dollars in revenue, I can’t find an attempt to recoup their losses shocking at all.
When I worked part time at Hobby Lobby our store had an account at Bank of America. When we went to that branch to cash our paychecks they would charge us $5 even though our store had an account there. I called and called and once I got to the top dog they would admit they weren’t supposed to be doing that, yet they continued to do it for years to come. They are corrupt in so many ways. I would never bank with them.
I completely agree with Susie. It’s to be expected when you consider the new government regulations.
I bank with Regions and just received similar information in the mail, although my fee is $4 a month.
We do not have a BofA account and we are with a local bank but they still charge fees. We found out that you can not pay our electric bill online through our bank online bill pay, you are told you have to pay through the electric departments website. They charge you $4.00 to pay it there. It is also $1.50 a month to get money out of your savings account too, and the interest rate you get from them is less than half a percent.
I used to be a bank teller for a certain bank where we had a whole “free” package.
After I moved away that town, I banked with BOA for about 2 weeks. My “free” account didn’t allow me to see a bank teller without charging a fee. I was terribly skeptical of putting my money into a machine and trusting it would get to the right place. Call me old fashioned, but I like to see a human face. I lasted only a couple of weeks and closed my account – and never looked back.
BOA has a habit of charging for every little thing.
But you are right – no need to get upset – pull your money out and take it to another bank. I did this recently with another very large bank. They kept messing things up…and they did that one time too many. I am now with a local bank. Great service, timely, friendly, and I am satisfied!
It’s not just BoA. I’m a Regions customer, and they’re doing it, too. Apparently some new law was signed over the summer that is just going into effect that is passing some of the charges that retailers pay onto the banks (I think; I need to go back and read it again.) I think even Navy Federal CU will eventually be charging. My husband has an account with them, and their website was where we were first informed about it. Anyway, major dislike!
To support what Susie is saying:
I am not one to side with any business charging extra money. However, I was listening to Rush Limbaugh just yesterday about this. He made an interesting correlation of the Durbin amendment (refer to Susie’s comment) to the charge BOA plans on doing. According to his broadcast, Limbaugh talked about how this Senator pushed the bill that is forcing large banks to lose money in fees. So clearly as any business would do, they have to make it up somewhere. (not that I think $5 for most debit card charges is ok, that bites) After the amendment went through Durbin then stood in legislation against BOA, urging everyone to change banks because BOA is dirty and rotten. In the end, it’s possible that his actions are going to cause a run on the bank, Marry Poppins style. That’s GREAT for the economy. (sarcasm)
I realize that a $5 processing charge is outrageous to try and recover lost money from this amendment. Stupid really. But there is a far bigger evil working here. I hate BOA, but they sure have become an escape goat in this matter.
Wow! They have just brought in a fee on the debit card here in Australia too! Like the banks aren’t rich enough already!
Jilly
I was a bookkeeper for two different companies with BOA accounts, and I could not believe the way they treated their businesss customers, not to mention the borderline ethical practices they followed. BOA leads the pack on dirty tricks. I’d stuff my money in a mattress before I had an account with them.
Please research the Durbin Amendment before you crucify Bank of America. I have worked for them in the credit card industry for 20 years. BofA is big and easy to blame for everything. They were not the first, second, or even third large bank to impose a monthly debit card fee, but the media doesn’t tell you that. It’s more sensational to blame BofA yet again. Small credit unions are often great, but they also seem to often have strange self-imposed regulations and fees. Do your research carefully and remember that a debit card is a luxury, a convenience, and there is no fee to use cash.
I don’t think I’m crucifying Bank of America. I’m asking if people are going to pay the fee or switch banks.
BofA is just the first and got publicity because they are one of the biggest. Other banks will follow, it is only a matter of time. And there are many ways around the fees, as any customer who takes the time to walk into a branch will find out by talking to a personal banker. What the media is not talking about is that BofA is doing away with overdraft fees too. But why report good news when it is so much more fun to stir the pot for the public, right?
On the BoA page it says the overdraft fees are only waived for certain types of accounts, is this changing? Because it would be good for people to know if that is the case. It could help them make their decision to stay with them or switch.
I’m really happy to see some people doing their research before they open their mouths! Ive worked with the bank for a little over two years now, and Ive obviously come across every type of customer. We actually have A LOT of customer that have the high end accounts, and maybe for only the reason that they have a mortgage with us! I banked with BAC before I worked for them, and while I dont throw all my “veggies in the same pot” (my husband is a veteran and yes we love USAA as well) the bank offers great things. Just remember, they are not a NOT for profit bank! They are a business, and they offer great solutions to their customers! You pay for the products and services that you receive. If you arent happy please let us know, it would be our pleasure to make sure that after WE are through you leave happy! And thanks Happy for doing any article on this, I think its great to see what people are saying, and it gives the bank feedback to base their newer proucts and customer service solutions around!
I also am a Bank of America customer for both personal and business use. I encourage
EVERYONE to switch banks, If we don’t and allow them to get away with this, it will only
be the beginning of many other fees to come. Whether or not you can afford the fee it is
the principal of the matter