Banks Planning to Charge Annual Fees on Debit Card.

Banks Planning to Charge Annual Fees on Debit Card.

NEW YORK (CNNMoney) -- It's like Night of the Living Dead: Every time the feds kill off a set of fees, they come back to life -- just in slightly different forms.

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Just saw this on CNN. Banks are considering charging a $30 annual fee on debt cards. They're also planning on charging you a fee if you use your debit card excessively. The reason they say is government regulations are costing them too much.

They use our money to bail them out and now they want to stick it to us. Nothing like biting the hands that feed them.
What are your thoughts?


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Well I guess if people have a problem with it then they need to open up their own bank and make their own debit cards for themselves, then they can have them for free with no fees.

To me, this is insane, these banks are already making massive profits, how can they justify additional charges? I doubt this would ever happen, though. Anyone who's smart would just withdraw cash in branch and scrap their debit card- though they're definitely very convenient, they're far from a necessity. I don't know why I'm surprised, corporate greed like this is the norm nowadays, there's no such thing as being "too rich" in their eyes.

Originally posted by WeRpeons

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You didn't enter the bb-code correctly, so here's the link:

money.cnn.com...

What this means is most people will say keep you debit cards banks. People will go to the bank every two weeks and take out a large sum and break up the pile and budget, putting money in different envelopes to pace spending.
Less money will be sitting in the banks, and they will have to hire more bank tellers to make up for more people standing in lines.

reply to post by WeRpeons


my thoughts are to start using private banks, or no banks at all, i know that in this day and age its hard not to have a bank account as we all are paid by cheque or paid directly into our bank accounts, but definately those who are paid cash should not deal with banks, and those that get paycheck to dump the big maistream banks and go private because this will never end. not only are the governments taxing us out the a$$, now the banks not happy with being bailed out want to start skimming money from us, is it not enough that credit cards have interest rates, that now they have to start charging just for the privalege of depositing OUR money into THIER banks??

this is going to get worse....soon it will be 100 a month then 150 and so on...till between taxes, mortagages, food, utilities, car payments, and now bank charges we wont have two pennies to rub together.

As touched on before and something I have mentioned on other 'News' websites......

Lets go Back to using hard CASH once in a while !!!

It is still legal to do so and costs the Banks more to administer...... Currently the only thing I use a card for is paying for my fuel now (2/3 times per week)... Everything else I now pay with cash...

It's quite comical actually when sometimes the Cashier or checkout assistant sees you with a wad of £20's.. it's as if they don't know what to do........

USE CASH....USE CASH

PDUK

reply to post by frugal


The only catch to that is that many banks will charge fees for in-bank services. Need to speak with a teller? There will be a service charge...

To fight this, people should avoid the large banks in favor of local or regional banks and/or credit unions as well as budgeting monthly and getting creative about working within their system. Make it work for you! Not the other way around...

Well, I hope a small bank gives them free in order to create competition among the debt cards and bring customers in. Banks are always creating checking accounts with little or no fees to bring in customers and I hope this will be the same kind of situation.

If not, you could buy prepaid Visa cards from Walmart or wherever. I got some for gifts and they didn't charge but a couple of dollars to put the money on the cards. You get charged using ATMs that aren't your bank anyway, so using prepaid Visa cards should cause a problem. And I don't see Visa prepaid charging another $30 because that would kill the business.

If the banks do this and the people bail on their debit cards and use prepaid cards, it won't be long before those fees come WAY down or are eliminated totally. The individual banks would lose quite a bit on the bottom line and in this economy I wouldn't think they would do that. However, they are bast$%#*!

Of course, this is just a theory and time will tell. If they do that, I will be using prepaids or cash. $30/month is insane!

We have something similar here in canada. For example i pay $13 a month for unlimited transactions, email money transfers ect. There are smaller plans for less ussage and bigger plans that give you discounts on checks and whatnot. Its not nessesarily a bad thing considering the costs of all the little fees do add up if you dont have a plan.

The thing that does bother me is that we no longer have a choice to use banks for living, as most people cannot be paid in cash and have no way of claiming their already shrunken pay without more fees taken off the top. Thats the problem, its no longer a service that people use for convenience, but a necessity for most parts of life. We have no choice to pay, and they know it.

reply to post by Hatcookie


But I don't see why they should charge you for anything like that at all. You're basically lending them your money and they're making their money investing it. At the end of the day, if it weren't for their customers, they wouldn't exist. We could survive without banks, it's the bank that need us. If you're happy paying $13 a month, fair enough, but in the UK there'd be massive protests if they started doing that. The Royal Bank of Scotland recently handed out £1billion in bonuses and the major banks here make billions in profit annually- they don't need any more money.

reply to post by NWOnoworldorder


I belong to a credit union so I'm hoping they don't follow suit. I've had my money in banks before, but since I joined my credit union 15 years ago, it's like night and day. I know my credit union is more consumer friendly than my bank ever was.

Debit card is basically MY money from the bank inside a card. They will be charging me fees monthly for having one and charge me additional fees for using it which is by the way MY own money? This is a complete outrage and I hope it isn't true. I don't understand the reason for doing this, except maybe they want to downsize the use of debit cards so people carry cash instead? If this do came to be, nobody will be carrying one I'll tell you that.

I can see all markets suffering a loss from this. I use my card daily because its easy money transaction directly from my bank. If I'm carrying around pocket cash and run out while shopping what happens? until I can withdraw more, no more shopping of course (market suffers).
My bank has a reward program of giving out incentive the more you use your card. To go from that to the complete opposite is madness. Where are the benefits of this at all besides the banks stealing money? It's just another way of screwing us over and taking our money. A lot of people are living off from paycheck to paycheck. I'd rather not have any bank account and instead keep my own money in a vault, I'd probably save more.

reply to post by LadySkadi


You could also keep all your money in a money market account. Use Discover card to pay for everything (no annual fee) and then write one check (over $250.00) from money market account once a month to pay off the card's balance in full. Paycheck can be electronically direct deposited into moneymaket account. If someone doesn't accept Discover then don't buy their product.

I told Chase to take a flying leap last year and went with a local credit union. Completely free checking, free ATM usage, no fees whatsoever! The only requirement is direct deposit. Without it the monthly fee is only $3.99 - but I suspect that is to cover the cost of the free checks they gave me. Oh and cooler yet, my debit card has my picture on it!

F**k the big banks! Never again.

Just wanted to bring this to everyone's attention, when I was reading everyone's post I noticed everyone was saying $30 dollar a month fee. So I rechecked my thread and realized I made a mistake and typed in monthly instead of a $30 dollar annual fee. The heading was correct "Annual" but the "monthly" in comments was a typo error. My bad, I just edited the thread. Everything else is correct, again sorry for the typo error.

We're the ones that distanced ourselves from using cash for the convenience of using these cards....so pay up or use checks or cash.

If they start charging a fee, it is no longer a debit card. It becomes a credit card.

reply to post by ScepticalBeliever


I see where you comming from, Im looking at it from the angle that if i didnt pay that monthly fee I'd get dinged with little fees every time i used my debit which would add up to much more than $13 a month. It's been like that since I've started my working life and being 27 years old, I've never known anything different. I guess thats why I think its normal, although you are right in your statement that we are lending them money, and they are making money off of that ect.

I did however state that I dont think its fair because its not something I can just stop paying if want, it's a service that provides convenience yet we have NO choice but to use it, since most aspects of life now require you to have a bank account to function. Its no longer a choice but a necessity and that burns my butt to no end!