Tuesday, October 19, 2010

[Off-topic] Say goodbye to traditional free checking

Free checking as we know it is ending.

The days when you could walk into a bank branch and open an account with no charges and no strings attached appear to be over. Now you have to jump through some hoops — keep a high balance, use direct deposit or swipe your debit card several times a month.

One new account at Bank of America charges $8.95 per month if you want to bank with a teller or get a paper statement.

Almost all of the largest U.S. banks are either already making free checking much more difficult to get or expected to do so soon, with fees on even basic banking services.

It's happening because a raft of new laws enacted in the past year, including the financial overhaul package [thanks to Pres. Obama and the Democrats in Congress], have led to an acute shrinking of revenue for the banks. So they are scraping together money however they can.

Bank of America, which does business with half the households in America, announced a dramatic shift Tuesday in how it does business with customers. One key change: Free checking, a mainstay of American banking in recent years, will be nearly unheard of.

"I've seen more regulation in last 30 months than in last 30 years," said Robert Hammer, CEO of RK Hammer, a bank advisory firm. "The bottom line for banks is shifting enormously, swiftly and deeply, and they're not going to sit by twiddling their thumbs. They're going to change."

Yeah, I've heard plenty about CHANGE the past two years. Come November 2, we had better start to change back.

1 comment:

TLF+ said...

Not a big fan of most stuff coming out of DC, but I have to wonder why the banks are basing profit on penalties for overdrafts and other such fees. As was pointed out in one article, banks charge $35 on a $2 overdraft.

"Two cycle billing" on bank credit cards effectively doubled the customer's stated interest rate by charging on the balance at both ends of the month.

Like I say, no fan of the current regime, but Christians are not doing much when it comes to usury and other Biblically proscribed financial behaviors.