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Closing a bank account could cost $55

Discussion in 'The OT' started by phrelin, May 31, 2012.

  1. phrelin

    phrelin Hall Of Fame DBSTalk Club

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    From the AP via Yahoo:
    The trick, of course, is to open your new account, get all those direct deposits and automatic payments moved and tested, then write a check leaving $1 in your old account.

    Then send the bank a letter in the snail mail telling them to close the account and please donate the $1 to the bank's favorite charity.

    But that means you have to have the funds to maintain monthly cash flow in two accounts, which many don't.
     
  2. Nick

    Nick Retired, part-time PITA DBSTalk Club

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    Another reason why I don't deal with large national banks. As a geezer, I get free
    'everything' (no fees) from my small hometown bank. I also get little or no interest.

    /SIGNED/ A Former Banker
     
  3. wilbur_the_goose

    wilbur_the_goose Hall Of Fame

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    I "fired" Wells Fargo and went with a local credit union. Best move I've ever made!
     
  4. spartanstew

    spartanstew Dry as a bone

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    I get free everything with BofA.
     
  5. Stewart Vernon

    Stewart Vernon Roving Reporter Staff Member Super Moderator DBSTalk Club

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    Some people with accounts at small banks were bought when large banks were merging...

    Wachovia years ago merged with First Union... then bought SouthTrust... then recently was bought themselves by Wells Fargo.

    There are a lot of SouthTrust customers who were happy with that small bank, that are unhappy now with the big bank.
     
  6. James Long

    James Long Ready for Uplink! Staff Member Super Moderator DBSTalk Club

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    Bank is a four letter word. Support your local credit union. :)
     
  7. Jun 1, 2012 #7 of 54
    markfp

    markfp Legend

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    I agree. I've been with a small local bank for about 25 years and never have paid a cent in fees. Actually, while my interest is tiny, it's still competitive with the big banks around here.
     
  8. Jun 1, 2012 #8 of 54
    Laxguy

    Laxguy Honi Soit Qui Mal Y Pense.

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    Nick-

    Maybe if you shaved or dyed your beard, got some Tommy Harmonic duds, smiled a lot, you'd receive more interest.....
    as you stroll down the boardwalk.....:hurah:
     
  9. Jun 1, 2012 #9 of 54
    Laxguy

    Laxguy Honi Soit Qui Mal Y Pense.

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    Hell, Wells Fargo pays me!
     
  10. hdtvfan0001

    hdtvfan0001 Well-Known Member

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    Bingo.

    Having switched a few years back to a CU...I've found no loss of any service and about $140 a year in various fee savings.

    Having worked with the financial services industry for a very long time, I've seen the evolution of their mindset of imposing fees to recoup costs not to a major revenue stream.

    The regulators appear to in the process of reversing that trend (not that I like regulators or anything).
     
  11. SamC

    SamC Hall Of Fame

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    As with most of Consumer's Union's work, it is anecdotial and sloppy.

    Digging deeper in the article:

    "...none of the 10 banks will make a free same-day electronic transfer, and all charge for wire transfers or certified checks."

    "BB&T and Citibank charge a $25 fee if the account is closed within 90 days, while US Bank, HSBC, and PNC Bank charge customers a $25 fee to close an account that has been open for fewer than 180 days."

    In other words, the number of banks where you cannot just walk in, close an account open for a legitimate amount of time, get the procedes in cash, and make sure that gets done by cancelling the direct depostis? Zero.

    Typical of CU. Why this group is taken seriously is beyond me.

    As to banks vs. credit unions, etc. I am a customer of a regionwide bank. It serves me well. It has branches throughout my state and in 10 other states. Credit unions and local banks are too limiting for me as most only have a few offices in one small area.

    I also NEVER agree to automatic debits. I always ask for a paper bill, and pay it (online) out of my bank account. No way I am going to allow some to write themselves a check out of my account.
     
  12. MysteryMan

    MysteryMan Well-Known Member DBSTalk Club

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    +1......I have been using a CU for decades. They provide the same service as banks but without the hassle.
     
  13. dpeters11

    dpeters11 Hall Of Fame

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    To the credit of Credit Unions, it doesn't much matter if there's a local branch of that Credit Union. You can walk into pretty much any union in the country and make deposits/withdrawals or loan payments even with a teller. My credit union no longer has a presence downtown, so I took a check to another one. I checked my account online when I left the building and it was already applied to my account. I can also use US Bank ATMs with no surcharge.

    A credit union may be small, but not inconvenient. I just wonder why the one I went into this week wasn't federally insured. What benefit to the Union and customers is there (other than the Union doesn't have to pay that fee)? Mine just uses private insurance to go over the NCUA level.
     
  14. The Merg

    The Merg 1*

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    I use TD Bank and am very happy with them. While I do need to maintain a $2,500 minimum balance for the type of account I have, I can use any bank's ATM. TD will not charge me a fee for the other bank's ATM and if the other bank hits me with a fee, TD will reimburse me at the end of the month. Since where I work, there are not many branches for TD bank (that's changing though), that is very nice.

    Their on-line banking is simple and easy to use and I was even able to get it so that I could see my business account info when I log on to my personal account. The only thing I wish they had was the ability to deposit checks via their app on the iPhone. I figure it's just a matter of time before that.

    I do think it's funny that their slogan is about how convenient they are, which is basically true, however, you will never find a drive-up ATM at their banks. For an ATM, you need to park and go up to the bank.

    With regard to CU's, I belong to one and used to belong to two. The one I closed the account with was Apple Federal Credit Union. I got rid of them for two reasons. One was that I kept getting some e-mail newsletter from them that I didn't want to get anymore. There was no way to unsubscribe. It actually tells you to call to unsubscribe, but every CSR I spoke with stated that to unsubscribe I needed to close my on-line account. The second was that they started charging me a fee that was never disclosed. Since I didn't use the account (it was a hold-over from my first job), I would only get statements once a year from them, however, I checked it more often by downloading into Quicken. I suddenly noticed that the balance in Quicken was going down. Over a 3 month period I lost $6. I called up and found out that I was being charged an Inactive Account fee of $2/month. There is absolutely nothing on their website about this fee when you look up their fees. I was told that it would have been in the literature I got when I opened the account. Sorry, when my old CU was merged into Apple, I got no literature about this fee. Plus, the account had been "inactive" for years before this fee assessed and according them the fee is assessed after 12 months of inactivity.

    - Merg
     
  15. klang

    klang Hall Of Fame

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    Same here. Do have to park a minimum amount there to avoid the fees. We've been generally happy with BofA over the years.
     
  16. sigma1914

    sigma1914 Well-Known Member DBSTalk Club

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    I've had BankOne, now Chase, for about 17 years without any issues...maybe I'm lucky?
     
  17. spartanstew

    spartanstew Dry as a bone

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    Luckily, I'm not everyone. Just me.

    Been using BofA for 12 years and not a single $1 in fees in that time and when I do need customer service it's great (having thousands of ATM's around Dallas helps too).

    Incidentally, before BofA, I was a Credit Union Member for 20 years.

    Don't really see a difference between the two, other than accessibility (advantage BofA). The only advantage the CU had (for me) was better rates on purchasing cars, but that hasn't been a big deal since both of my last car purchases were 0% financing from the dealership.
     
  18. James Long

    James Long Ready for Uplink! Staff Member Super Moderator DBSTalk Club

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    Chase annoyed me with a few decisions over the year but I adjusted.

    They wanted to charge me for using their tellers instead of ATMs ... it didn't bother me as almost everything I do is direct deposit and debit card.

    The thing that they almost lost me over was a rule that you had to have one direct deposit per month over $500 (if I recall the minimum correctly). A person with two $499 deposits per week would pay the fee ... a person with only one $500 each month (even if it was the only deposit in the entire month) would not pay the fee. I felt it was unfair and biased against people paid weekly. (When I was on unemployment I had to wait for a 2nd week of money to be in my UI account before transferring it so I could stay over the threshold. Fortunately my current job pays bi-weekly.)
     
  19. SamC

    SamC Hall Of Fame

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    I was unaware of that.

    Warning, thread hijack. I go to LV and such quite a lot. I am no high roller, but I will gamble $20K or so in a long weekend. Very difficulat to take money out there. Not going to carry cash. ATMs on the Strip all belong to the casinos and charge outrageous fees, and limit you to $500 anyway. My bank does not do business there, nor do any of the banks there do business here. The casinos will do a "marker" but that is cubersome and requires a background check and its easy to lose track of what is going on. I end up using old fashioned travelers' checks, which are becoming difficult to obtain.

    I think there is a business opertunity for a service to easily move money to resort casino locations.
     

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