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If you have less than $x balance or $y/mo in direct deposits, most banks charge a fee. Because what someone who makes less than $1,000/mo really needs is to pay
by jmccree 12y ago
If you have less than $x balance or $y/mo in direct deposits, most banks charge a fee. Because what someone who makes less than $1,000/mo really needs is to pay over $100/year for a checking account. That's not including all the likely overdraft/returned item fees someone with an average balance of less than $1,000 is likely to achieve.
How it doesn't violate usury laws to charge someone $35 for a $5 overdraft, I'll never understand.
- Pxtl 12y agoDidn't the gov't kill the usurious overdraft charges? I don't follow American news too closely anymore but I remember hearing rumbling about that... iirc that's why American banks started moving over to the model I see here in Canada - large minimum balance or ~$10/mo in monthly fees.
- oddevan 12y agoI'm not sure about the overdraft charges, but they did require the default for debit cards to "deny" a charge if it would result in an overdraft. So I won't overdraft my account by accident if, for example, I try to buy a $2 drink before my paycheck clears. (Happened once...)
- latortuga 12y agoThere are many banks where this isn't the case and you should never pay for a checking account, regardless of how much money you have coming in every month. I even have a Wells Fargo (canonical "big bank" example) checking account that has been sitting with $16.09 for the past 6 months. Do not pay for a checking account, ever. If your bank is charging you a fee for your account, call them and say "I can get a free checking account at X competitor, I am going to switch to them unless you can match that." Hell, Charles Schwab offers a free checking account and will refund ALL ATM fees every month.