Bank of America recently announced they would be dropping their planned $5 debit card fee, joining a list of other banks, including Wells Fargo and Chase, who wouldn’t be adding fees to their cards. From the looks of things, the outpouring of customer backlash has been heard.
But don’t get too excited just yet.
Industry analysts predict that banks will continue to add fees to their accounts, in an attempt to make up for lost revenue after increased regulation. Many banks are already charging fees if you don’t keep a certain minimum balance in one of your accounts.
“Especially now, consumers need to keep an eye on their bank statements and be aware of any fees that may come their way,” says Patty Hasson, President and Executive Director of Clarifi.
If you’re thinking about changing your bank, here are some things to consider:
- Look at the banks in your area and which one will give you the best deal. Are there branches close to you? How are their interest rates? Is their customer service accessible? These are questions to think about.
- Are there ATMs where you need them? If you rely on ATMs to make deposits and take out cash, make sure the bank you choose will have ones that are convenient for you.
- What automatic payments or direct deposits do you have at your current bank? You don’t want to close your old account until you’re sure that everything has been switched over.
Thinking of changing your preferred method of payment? Here are some pros and cons:
- Debit Cards: These offer a convenient way to pay without carrying cash around. Debit cards are ideal for things like groceries, gas and cash withdrawal. However, they offer less dispute protection than credit cards and therefore shouldn’t be used for big-ticket items or travel needs.
- Credit Cards: You’ll have more protection with a credit card without worry about over drafting your account. On the flip side, you might be tempted to overspend, since you don’t have to pay for purchases right away.
- Checks: Ah, the good ‘ol fashioned check. While good in some instances, you’ll want to avoid checks for everyday purchases. Some stores don’t accept them at all and the ones that do are becoming less trusting of them. Checks also won’t appear on your statement until they clear, so your balance won’t always be accurate.
“Ultimately, consumers need to look at their banking options and determine which one is the best fit for them,” continues Hasson. “And if you’re worried about fees, talk to your bank about it. If you remind them how long you’ve been a customer and what products you’re using, they may be willing to work with you. It doesn’t hurt to ask.”
If you would like to make a free appointment with a certified credit counselor about any of your financial matter, including your banking options, give us a call at 1-800-989-2227.