Comments on: Is free checking on its way out? http://moremoney.blogs.money.cnn.com/2009/07/02/is-free-checking-on-its-way-out/ Money Magazine looks at a wide range of personal finance issues and asks for your feedback. Tue, 22 Dec 2009 00:19:01 +0000 http://wordpress.com/ hourly 1 By: Paige, New York, NY http://moremoney.blogs.money.cnn.com/2009/07/02/is-free-checking-on-its-way-out/#comment-20678 Paige, New York, NY Wed, 26 Aug 2009 02:04:10 +0000 http://moneyfeatures.blogs.money.cnn.com/?p=1503#comment-20678 I agree with the cell phone senario. Everybody is screaming manage your account better, or be more responsible, but the fact is you dont have to. In this life time we are offered many convieniences and yes we will pay for them. I dont think people mind paying for a mistake (intentional or not)but I think the main problem is the EXCESSIVE fees. To be able to owe anyone $480 for a $7 overdraft should be illegal. This new checking account where people pay a small flat fee to do what they want, when they want sounds like a better privalage of not being embarrased at the checkout line than $290 in fees not to be embarrased. So I say if it works for you then do it. I personally dont monitor my cell minutes not because i cant but because I DONT WANT TO, so I dont mind the $99 a month flat fee for unlimited usuage. most people dont even keep track of thier kids..they pay someone else to..get it- if the shoe fits-then put the other one on..lol.. I think the checking account is kool for those that it works for. Funny thing is people are being more responsible using a product as such instead of paying rediculous bank fees that they may currently be paying. Sounds like a responsible move to me. ;-) I agree with the cell phone senario. Everybody is screaming manage your account better, or be more responsible, but the fact is you dont have to.

In this life time we are offered many convieniences and yes we will pay for them. I dont think people mind paying for a mistake (intentional or not)but I think the main problem is the EXCESSIVE fees. To be able to owe anyone $480 for a $7 overdraft should be illegal.

This new checking account where people pay a small flat fee to do what they want, when they want sounds like a better privalage of not being embarrased at the checkout line than $290 in fees not to be embarrased. So I say if it works for you then do it.

I personally dont monitor my cell minutes not because i cant but because I DONT WANT TO, so I dont mind the $99 a month flat fee for unlimited usuage. most people dont even keep track of thier kids..they pay someone else to..get it- if the shoe fits-then put the other one on..lol..

I think the checking account is kool for those that it works for. Funny thing is people are being more responsible using a product as such instead of paying rediculous bank fees that they may currently be paying. Sounds like a responsible move to me. ;-)

]]> By: A banker in Pella, IA http://moremoney.blogs.money.cnn.com/2009/07/02/is-free-checking-on-its-way-out/#comment-20629 A banker in Pella, IA Tue, 25 Aug 2009 16:06:05 +0000 http://moneyfeatures.blogs.money.cnn.com/?p=1503#comment-20629 You have all lost sight of a very important point. A bank is a business. A business' sole purpose is to make money. A bank makes money through overdraft fees. A checking account is a priviledge, not a right. It is your responsibility to maintain your balance and know how much money you can spend. The bank does not manage your account. They just house your funds. I wish you would all stop whining and accept some responsibility for what you have done. If you spend money you don't have, pay the fee. If you don't like the way the bank charges fees, go bank somewhere else. Or better yet, use cash. You have all lost sight of a very important point. A bank is a business. A business' sole purpose is to make money. A bank makes money through overdraft fees.

A checking account is a priviledge, not a right. It is your responsibility to maintain your balance and know how much money you can spend. The bank does not manage your account. They just house your funds.

I wish you would all stop whining and accept some responsibility for what you have done. If you spend money you don't have, pay the fee. If you don't like the way the bank charges fees, go bank somewhere else. Or better yet, use cash.

]]> By: jimbo, st. louis mo http://moremoney.blogs.money.cnn.com/2009/07/02/is-free-checking-on-its-way-out/#comment-19958 jimbo, st. louis mo Tue, 11 Aug 2009 07:13:02 +0000 http://moneyfeatures.blogs.money.cnn.com/?p=1503#comment-19958 Yes, consumers should not be spending money they do not have in their account, but the guild would also goes to the bank who lets the consumer spend what they don't have. Yes, consumers should not be spending money they do not have in their account, but the guild would also goes to the bank who lets the consumer spend what they don't have.

]]> By: james, royal oak, mi http://moremoney.blogs.money.cnn.com/2009/07/02/is-free-checking-on-its-way-out/#comment-19943 james, royal oak, mi Tue, 11 Aug 2009 00:33:28 +0000 http://moneyfeatures.blogs.money.cnn.com/?p=1503#comment-19943 sorry john knows not and denver doug, credit unions also charge overdraft fees. switching to a credit union won't save you money if you spend money you don't have. if you hate paying overdraft fees, balance your checkbook and spend accordingly. sorry john knows not and denver doug, credit unions also charge overdraft fees. switching to a credit union won't save you money if you spend money you don't have. if you hate paying overdraft fees, balance your checkbook and spend accordingly.

]]> By: Realist, New Jersey http://moremoney.blogs.money.cnn.com/2009/07/02/is-free-checking-on-its-way-out/#comment-19942 Realist, New Jersey Tue, 11 Aug 2009 00:29:27 +0000 http://moneyfeatures.blogs.money.cnn.com/?p=1503#comment-19942 People need to learn how to manage their money!!! dont spend money you don't have. it's fairly simple... After your first overdraft fee or fees, you should learn your lesson... There is no excuse for racking up hundreds of dollars in fees especially if you're are of the consequences... Overdrafting is stealing! You're borrowing money before asking!!! I work in a bank and I hate when people threaten to close their account b/c they spend more than what they have and get angry when they get fees for it... A bank does not profit from zero dollar accounts anyway and it is costly to operate a bank. Who pays the employees? Online banking and all the other services? Wake up people, the world doesn't revolve around you..... People need to learn how to manage their money!!! dont spend money you don't have. it's fairly simple… After your first overdraft fee or fees, you should learn your lesson… There is no excuse for racking up hundreds of dollars in fees especially if you're are of the consequences… Overdrafting is stealing! You're borrowing money before asking!!! I work in a bank and I hate when people threaten to close their account b/c they spend more than what they have and get angry when they get fees for it… A bank does not profit from zero dollar accounts anyway and it is costly to operate a bank. Who pays the employees? Online banking and all the other services? Wake up people, the world doesn't revolve around you…..

]]> By: Joe Knows, Kansas City, MO http://moremoney.blogs.money.cnn.com/2009/07/02/is-free-checking-on-its-way-out/#comment-18168 Joe Knows, Kansas City, MO Tue, 07 Jul 2009 22:27:20 +0000 http://moneyfeatures.blogs.money.cnn.com/?p=1503#comment-18168 Make the switch to a credit union and save REAL money. Like any purchase, shop around and find a product that best meets your needs. Take responsibility; apathy can be expensive. Make the switch to a credit union and save REAL money. Like any purchase, shop around and find a product that best meets your needs. Take responsibility; apathy can be expensive.

]]> By: Sherry, Openhave, IA http://moremoney.blogs.money.cnn.com/2009/07/02/is-free-checking-on-its-way-out/#comment-18167 Sherry, Openhave, IA Tue, 07 Jul 2009 19:54:21 +0000 http://moneyfeatures.blogs.money.cnn.com/?p=1503#comment-18167 One of the main reasons banks charge overdraft fees is b/c they are doing you are service. Otherwise you would be the person in line at the supermarket that couldn't pay for food b/c your card was denied. These people act like the bank is punishing them for overdrafting. They are trying to make sure your payments other places are made on time (for instance your $900 mortgage or rent payment) or that you aren't embarrassed at a restaurant for not having enough money to cover dinner. One of the main reasons banks charge overdraft fees is b/c they are doing you are service. Otherwise you would be the person in line at the supermarket that couldn't pay for food b/c your card was denied. These people act like the bank is punishing them for overdrafting. They are trying to make sure your payments other places are made on time (for instance your $900 mortgage or rent payment) or that you aren't embarrassed at a restaurant for not having enough money to cover dinner.

]]> By: Doug, Denver, CO http://moremoney.blogs.money.cnn.com/2009/07/02/is-free-checking-on-its-way-out/#comment-18166 Doug, Denver, CO Tue, 07 Jul 2009 18:40:03 +0000 http://moneyfeatures.blogs.money.cnn.com/?p=1503#comment-18166 SWITCH TO A CREDIT UNION! Credit unions are not-for-profit entities who are focused only on their members and their deposited money. Whereas banks are for-profit corporations focused on maximizing returns for the shareholders, NOT THE DEPOSITORS! SWITCH TO A CREDIT UNION!

Credit unions are not-for-profit entities who are focused only on their members and their deposited money. Whereas banks are for-profit corporations focused on maximizing returns for the shareholders, NOT THE DEPOSITORS!

]]> By: Anonymous http://moremoney.blogs.money.cnn.com/2009/07/02/is-free-checking-on-its-way-out/#comment-18163 Anonymous Tue, 07 Jul 2009 17:08:33 +0000 http://moneyfeatures.blogs.money.cnn.com/?p=1503#comment-18163 I agree people should be more responsible, and banks will nickel and dime whenever they can, but people seem to be ignoring a fact. Your free checking account is not free to set up or service, for the bank. Setting up systems that allow you to do online bank is not free for the bank. The costs that everyone should be paying for the services they are getting, are being subsidized by charging larger fees to overdrafts, etc. So I don't think the argument "why should I have to pay for a service I'm receiving" has a whole lot of merit. I agree people should be more responsible, and banks will nickel and dime whenever they can, but people seem to be ignoring a fact. Your free checking account is not free to set up or service, for the bank. Setting up systems that allow you to do online bank is not free for the bank. The costs that everyone should be paying for the services they are getting, are being subsidized by charging larger fees to overdrafts, etc. So I don't think the argument "why should I have to pay for a service I'm receiving" has a whole lot of merit.

]]> By: Anne Marie, Portland, Oregon http://moremoney.blogs.money.cnn.com/2009/07/02/is-free-checking-on-its-way-out/#comment-18160 Anne Marie, Portland, Oregon Tue, 07 Jul 2009 15:47:10 +0000 http://moneyfeatures.blogs.money.cnn.com/?p=1503#comment-18160 Have a permanent cushion of $200 or so in your checking account, beyond what your typical spending is for a month (yes, you have to budget so you know). Then you'll never overdraw or need to transfer from savings. Replenish if you dip into it. Geez, there's no reason to be overdrawing. Either cut spending or plan better. Have a permanent cushion of $200 or so in your checking account, beyond what your typical spending is for a month (yes, you have to budget so you know). Then you'll never overdraw or need to transfer from savings. Replenish if you dip into it. Geez, there's no reason to be overdrawing. Either cut spending or plan better.

]]> By: Brad, Eagan MN http://moremoney.blogs.money.cnn.com/2009/07/02/is-free-checking-on-its-way-out/#comment-18158 Brad, Eagan MN Tue, 07 Jul 2009 15:22:21 +0000 http://moneyfeatures.blogs.money.cnn.com/?p=1503#comment-18158 One of the points of the article is that overdraft fees have subsidized free checking. So don't rage on about irresponsible people being subsidized by you. They are the ones paying our way. Now the gravy train may be stopping. Maybe you should be thinking about the next way to skim from the irresponsible. One of the points of the article is that overdraft fees have subsidized free checking. So don't rage on about irresponsible people being subsidized by you. They are the ones paying our way. Now the gravy train may be stopping. Maybe you should be thinking about the next way to skim from the irresponsible.

]]> By: Spencer, Santa Barbara, Calif & Chapala, Mexico http://moremoney.blogs.money.cnn.com/2009/07/02/is-free-checking-on-its-way-out/#comment-18152 Spencer, Santa Barbara, Calif & Chapala, Mexico Tue, 07 Jul 2009 00:55:57 +0000 http://moneyfeatures.blogs.money.cnn.com/?p=1503#comment-18152 Well there are some ways to keep your accounting to a minimum and thereby, hopefully track your account balance better so that you won't bounce checks. 2 things I do are pay cash as much as possible so that it doesn't become an accounting issue, I'm only limited by the cash in my wallet. Other expenses for say business purposes can be put on a credit card and as long as I pay within the grace period, I pay no interest. I write very few checks monthly this way and balancing my checking account is a breeze, I also keep a good cushion in the account. I agree that people need to be more responsible, it seems as some people always have bad luck and a dark cloud follows them. The reality is that proper planning and thought can avoid the vast majority of problems. Banks are for profit companies and know the dumb mistakes people make and how very few learn from their mistakes. B of A, among other banks is notorious for making money off the float, i.e. placing a hold on a check and not giving you access to your funds. This further exacerbates the problem of sloppy record keepers and those who drain their account balance regularly. Most checks can clear in 1 to 3 days and the bank has the funds. I do feel people need to own up for their actions but also the banks are scamming where they place a hold of a week on a certified check that they KNOW clears in 1 to 2 days while collecting junk fees during the period for which they've collected funds but not credited the account holder. This practice is plain wrong. Well there are some ways to keep your accounting to a minimum and thereby, hopefully track your account balance better so that you won't bounce checks. 2 things I do are pay cash as much as possible so that it doesn't become an accounting issue, I'm only limited by the cash in my wallet. Other expenses for say business purposes can be put on a credit card and as long as I pay within the grace period, I pay no interest. I write very few checks monthly this way and balancing my checking account is a breeze, I also keep a good cushion in the account.

I agree that people need to be more responsible, it seems as some people always have bad luck and a dark cloud follows them. The reality is that proper planning and thought can avoid the vast majority of problems. Banks are for profit companies and know the dumb mistakes people make and how very few learn from their mistakes.

B of A, among other banks is notorious for making money off the float, i.e. placing a hold on a check and not giving you access to your funds. This further exacerbates the problem of sloppy record keepers and those who drain their account balance regularly. Most checks can clear in 1 to 3 days and the bank has the funds. I do feel people need to own up for their actions but also the banks are scamming where they place a hold of a week on a certified check that they KNOW clears in 1 to 2 days while collecting junk fees during the period for which they've collected funds but not credited the account holder. This practice is plain wrong.

]]> By: Fritz, Denver, CO http://moremoney.blogs.money.cnn.com/2009/07/02/is-free-checking-on-its-way-out/#comment-18120 Fritz, Denver, CO Mon, 06 Jul 2009 16:39:38 +0000 http://moneyfeatures.blogs.money.cnn.com/?p=1503#comment-18120 I am so sick of subsidizing people's irresponsibilities. I have 800+ credit score but my bank credit card has increased my interest from 2% to 15% all because this administration is forcing them to be nicer to the people making late payments and overdrafting. Additionally, I have always trusted online banking until recently when I have noticed that the online banking does not update as frequently as it used to. If the debits and credits are not going through as fast, it could induce more people to overdraft. A pretty sneaky way for the banks to get more money. Overdraft fees should exist because people are taking emergency loans to pay for their purchases. Instead of eliminating the overdraft fees, banks should be forced to maintain an efficient computer system to help customers track their debits and credits. Beyond that, people would be responsible for their accounts. What a concept! I am so sick of subsidizing people's irresponsibilities. I have 800+ credit score but my bank credit card has increased my interest from 2% to 15% all because this administration is forcing them to be nicer to the people making late payments and overdrafting.
Additionally, I have always trusted online banking until recently when I have noticed that the online banking does not update as frequently as it used to. If the debits and credits are not going through as fast, it could induce more people to overdraft. A pretty sneaky way for the banks to get more money. Overdraft fees should exist because people are taking emergency loans to pay for their purchases. Instead of eliminating the overdraft fees, banks should be forced to maintain an efficient computer system to help customers track their debits and credits. Beyond that, people would be responsible for their accounts. What a concept!

]]> By: BA , Englewood Ohio http://moremoney.blogs.money.cnn.com/2009/07/02/is-free-checking-on-its-way-out/#comment-18119 BA , Englewood Ohio Mon, 06 Jul 2009 15:27:53 +0000 http://moneyfeatures.blogs.money.cnn.com/?p=1503#comment-18119 Let us follow the logic here and continue it to other thinks. Speeding tickets for one. Why should the ones speeding pay the fine. It targets only those who get a ticket. Right? Not all of us. When opening a bank account, are not this things explained? Or do not get a check card if you can not balance a check book. I do feel for those who can not afford the fee's. But I think the solution is on the individual, not a mandate from the Goverment. Let us follow the logic here and continue it to other thinks. Speeding tickets for one. Why should the ones speeding pay the fine. It targets only those who get a ticket. Right? Not all of us.
When opening a bank account, are not this things explained? Or do not get a check card if you can not balance a check book. I do feel for those who can not afford the fee's. But I think the solution is on the individual, not a mandate from the Goverment.

]]> By: Ludwig Von Mises http://moremoney.blogs.money.cnn.com/2009/07/02/is-free-checking-on-its-way-out/#comment-18117 Ludwig Von Mises Mon, 06 Jul 2009 14:46:28 +0000 http://moneyfeatures.blogs.money.cnn.com/?p=1503#comment-18117 Just another small chapter in the Obama World View (saving the irresponsible from themselves). Stay tuned and keep counting. You're going to pay for it. Just another small chapter in the Obama
World View (saving the irresponsible from themselves). Stay tuned and keep counting. You're going to pay for it.

]]> By: Mike, New York, NY http://moremoney.blogs.money.cnn.com/2009/07/02/is-free-checking-on-its-way-out/#comment-18116 Mike, New York, NY Mon, 06 Jul 2009 14:33:52 +0000 http://moneyfeatures.blogs.money.cnn.com/?p=1503#comment-18116 I am thinking about closing my HSBC checking account. The online balance is always wrong. Recently it has been taking 5-7 business days for a debit to clear. It never took this long before. I am thinking about closing my HSBC checking account. The online balance is always wrong. Recently it has been taking 5-7 business days for a debit to clear. It never took this long before.

]]> By: Ross Williams, Grand Rapids MN http://moremoney.blogs.money.cnn.com/2009/07/02/is-free-checking-on-its-way-out/#comment-18114 Ross Williams, Grand Rapids MN Mon, 06 Jul 2009 14:17:00 +0000 http://moneyfeatures.blogs.money.cnn.com/?p=1503#comment-18114 This is based on the boilerplate story the banking industry has used for every effort to strengthen consumer protection. Essentially the argument the industry lobbyists have developed is that the banks are using the money they get from unfair practices to subsidize services to people who don't fall into the traps their business model is based on. The people who benefit from that are essentially their partners who get a very small part of the money they make but provide a political base for allowing them to continue in business. The fact is that a $45 fee for a $50 payday loan is loan sharking. The fact that they spread some of that money around by providing free checking doesn't change that. This is based on the boilerplate story the banking industry has used for every effort to strengthen consumer protection. Essentially the argument the industry lobbyists have developed is that the banks are using the money they get from unfair practices to subsidize services to people who don't fall into the traps their business model is based on. The people who benefit from that are essentially their partners who get a very small part of the money they make but provide a political base for allowing them to continue in business.

The fact is that a $45 fee for a $50 payday loan is loan sharking. The fact that they spread some of that money around by providing free checking doesn't change that.

]]> By: Keiht, Evergreen Park, IL http://moremoney.blogs.money.cnn.com/2009/07/02/is-free-checking-on-its-way-out/#comment-18113 Keiht, Evergreen Park, IL Mon, 06 Jul 2009 13:58:40 +0000 http://moneyfeatures.blogs.money.cnn.com/?p=1503#comment-18113 When I use my checking account DEBIT card for purchases I choose CREDIT at the register because the bank currently give me reward points. Correct me if I am wrong but VISA is charging the retailer 2.5-3% on the transaction and kicking a percentage of that amount back to my bank. Thus, my bank receives funds EVERYTIME I ring up a VISA purchase with my DEBIT card. How much are the banks making off of this transaction activity? I assume that they are making hundresds per year off of my activity alone. When I use my checking account DEBIT card for purchases I choose CREDIT at the register because the bank currently give me reward points. Correct me if I am wrong but VISA is charging the retailer 2.5-3% on the transaction and kicking a percentage of that amount back to my bank. Thus, my bank receives funds EVERYTIME I ring up a VISA purchase with my DEBIT card.

How much are the banks making off of this transaction activity? I assume that they are making hundresds per year off of my activity alone.

]]> By: Jen, Charlotte NC http://moremoney.blogs.money.cnn.com/2009/07/02/is-free-checking-on-its-way-out/#comment-18112 Jen, Charlotte NC Mon, 06 Jul 2009 13:58:20 +0000 http://moneyfeatures.blogs.money.cnn.com/?p=1503#comment-18112 Shouldn't the consumer advocacy groups care more about the majority than the 5%? Instead of fighting overdraft charges (which will pass costs on to everyone), spend your time educating the 5% a bit more. If they are not willing to listen, let them keep paying. Shouldn't the consumer advocacy groups care more about the majority than the 5%? Instead of fighting overdraft charges (which will pass costs on to everyone), spend your time educating the 5% a bit more. If they are not willing to listen, let them keep paying.

]]> By: NYC http://moremoney.blogs.money.cnn.com/2009/07/02/is-free-checking-on-its-way-out/#comment-18111 NYC Mon, 06 Jul 2009 13:58:19 +0000 http://moneyfeatures.blogs.money.cnn.com/?p=1503#comment-18111 To GP85, Try living in a real state and you'll see most people do live paycheck to paycheck and that's still not enough to cover the cost of living. To GP85,

Try living in a real state and you'll see most people do live paycheck to paycheck and that's still not enough to cover the cost of living.

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