Well, I've been doing some research into checking account fees, and man, they are everywhere! I wish I could do an all-online account (Capital One has 1.01% APY on their checking accounts!) but without the luxury of direct deposit, I just can't make it happen. So I had to find a brick-and-mortar bank with ATMs I could shove my paycheck into every two weeks.
I must be very lazy, because my criteria for looking into brick-and-mortar banks was those with locations near my workplace. Chase has a location across the street, but their fees are offending me, so I looked into my other options. These included Citibank, US Bank, and Bank of America. In the end, I decided on BoA's e-banking checking account, which doesn't levy a fee if you make deposits and withdrawals at an ATM and elect to receive electronic statements. They also allow you to visit a teller for free when you need a service the ATM cannot provide (coin deposits/withdrawals, cashier's checks).
I am pleased with my decision. I can still walk down the block to deposit my paycheck the day I receive it. I don't have to make a certain number of debit card purchases or keep a minimum account balance. My oldest credit card account is with BoA (10 years) and I've never had a problem with their customer service.
I have no misgivings about leaving Chase. In fact, I'm thinking of closing my credit card with them, too. But that's because I just applied for a Discover More Card, which offers $100 cash back if you spend $500 in the first three months. Easily done, and free money. Now, my struggle with which rewards cards to keep is fodder for another post!
05 December 2010
03 December 2010
Free checking, a thing of the past
Well, I've finally been cornered by the fee-based checking account. Chase sent me a letter informing me that my checking account will now come with a $12/month fee, unless I meet one of the following requirements:
Have one direct deposit of $500 or more made into my account each month.
Keep a minimum balance of $1,500.
Keep an average balance of $5,000 in my checking account AND a "qualifying" deposit or investment account linked to the checking account (who knows what a "qualifying" account would be).
Pay $25 each month in other Chase checking-related fees.
The simple solution would be direct deposit. Sadly, my small company does not offer this. The next solution would be to move money out of a savings account and hold it in my checking account, to meet the minimum $1,500 balance. This is not appealing. I'd much prefer seeing that money earning interest rather than lying like a lump in my checking account, doing nothing but staving off a rude and ridiculous service charge.
So, I did a little research. Turns out the Chase Total Checking account I am being rolled into is not the most basic option available to me, although the letter I received from Chase certainly makes it appear this way. After speaking with a telephone operator who didn't know what was going on, then IMing with an online support specialist who seemed to, I learned I can switch to a Chase Basic Checking account, which carries a $6/month fee that is waived by meeting one of the following requirements:
Have one direct deposit of $500 or more made into my account each month.
Make 5 debit card purchases per month.
I think we have a winner. I can make 5 debit card purchases each month; I come close to this anyway, at the grocery store, when I need cash for laundry or swimming. And if I don't meet the requirement naturally each month, I will just buy my last set of groceries individually, paying for each item separately with my debit card. Sounds like a plan. I would rather put these charges on my credit card, which has rewards, but I think I can find a way to minimize the damage here.
However, this fee-based checking account phenomenon is quite disconcerting. Thus, I am researching other options. The main problem is my employer's inability to provide direct deposit. If that happened, I would just open an ING Electric Orange checking account. I mean, that thing has interest! Maybe I will open one anyway, to feel it out and decrease my reliance on Chase. If could stand the waiting between getting my paycheck and seeing it post to my account (as it meanders through snail mail) it could work. Although it makes me incredibly nervous to rely on the USPS every two weeks to keep me solvent. Seems I would need to keep a brick-and-mortar account, like Chase, to make ATM deposits each pay period. Then I could transfer the money into ING after it posts. This is an extra complication, but I'm sure I could handle it. Hmmm, this is a head-scratcher. I will continue to mull it over.
Have one direct deposit of $500 or more made into my account each month.
Keep a minimum balance of $1,500.
Keep an average balance of $5,000 in my checking account AND a "qualifying" deposit or investment account linked to the checking account (who knows what a "qualifying" account would be).
Pay $25 each month in other Chase checking-related fees.
The simple solution would be direct deposit. Sadly, my small company does not offer this. The next solution would be to move money out of a savings account and hold it in my checking account, to meet the minimum $1,500 balance. This is not appealing. I'd much prefer seeing that money earning interest rather than lying like a lump in my checking account, doing nothing but staving off a rude and ridiculous service charge.
So, I did a little research. Turns out the Chase Total Checking account I am being rolled into is not the most basic option available to me, although the letter I received from Chase certainly makes it appear this way. After speaking with a telephone operator who didn't know what was going on, then IMing with an online support specialist who seemed to, I learned I can switch to a Chase Basic Checking account, which carries a $6/month fee that is waived by meeting one of the following requirements:
Have one direct deposit of $500 or more made into my account each month.
Make 5 debit card purchases per month.
I think we have a winner. I can make 5 debit card purchases each month; I come close to this anyway, at the grocery store, when I need cash for laundry or swimming. And if I don't meet the requirement naturally each month, I will just buy my last set of groceries individually, paying for each item separately with my debit card. Sounds like a plan. I would rather put these charges on my credit card, which has rewards, but I think I can find a way to minimize the damage here.
However, this fee-based checking account phenomenon is quite disconcerting. Thus, I am researching other options. The main problem is my employer's inability to provide direct deposit. If that happened, I would just open an ING Electric Orange checking account. I mean, that thing has interest! Maybe I will open one anyway, to feel it out and decrease my reliance on Chase. If could stand the waiting between getting my paycheck and seeing it post to my account (as it meanders through snail mail) it could work. Although it makes me incredibly nervous to rely on the USPS every two weeks to keep me solvent. Seems I would need to keep a brick-and-mortar account, like Chase, to make ATM deposits each pay period. Then I could transfer the money into ING after it posts. This is an extra complication, but I'm sure I could handle it. Hmmm, this is a head-scratcher. I will continue to mull it over.
Subscribe to:
Posts (Atom)