Survey: ATM, checking account overdraft fees surge

[Omaha Steve]

Source: AP-EXCITE

By ALEX VEIGA

LOS ANGELES (AP) — Banks are reaping bigger fees whenever customers overdraw their checking accounts or use ATMs that are not affiliated with their lender, a new survey shows.

The average fee for using an out-of-network ATM climbed 5 percent over the past year to a new high of $4.35 per transaction, according to a survey released Monday by Bankrate.com.

Overdraft fees also surged, rising on average over the past 12 months to $32.74. That's the 16th consecutive record high, the firm said.

Checking account fees have been increasing as lenders adjust to federal banking laws and regulations enacted after the 2008 financial crisis. Among the changes: limits on when banks can charge overdraft fees on ATM and debit card transactions and a reduction in the fees that banks charge merchants for each customer who uses credit or debit cards for their purchases.

FULL story at link.


Read more: http://apnews.excite.com/article/20140929/us--checking_account_fees-eba682446c.html

[a kennedy]

1. This just makes me sick.....and sooooooooo mad....

We use our ATM cards a lot, and thank gawd our "quik trip" convenience stores don't charge a fee so we use them a lot. Our Credit Union only has a few branches for us around our city to use, so the convenience stores are our first choice. I think this travesty could be in Elizabeth Warren's wheel house.

[yeoman6987]

5. Today nobody should be paying fees

I haven't paid a fee in twenty years. First go with a credit union. Find one that does not charge a monthly fee. They are out there. Second. Get overdraft protection. 1000 dollars should be enough. Third. Instead of using an ATM, use the service at the store that allows you to get cash back on your purchases. You often can get up to a hundred dollars a day. It is the silliest thing I have ever seen paying an ATM to take out money. For the record. The closest ATM my credit union has for me is 25 miles away so I don't get there often, but there are millions of ways to survive living with no fees.

[Sivafae]

16. Good idea. Now if only I had a 1000 to put in savings. nt

[yeoman6987]

19. What?

A thousand dollars? You sign up at a credit union for 5 dollars. Good grief. The thousand I was talking about is a line of credit that covers you if you fall short during different times.

[Xyzse]

21. Sounds good, but I can't seem to fit in any Credit union charter at the moment.

So it makes it hard to join one.

I looked around, none would have me.

I am not in the military, not part of a school system or anything.

[yeoman6987]

22. I am going to investigate. I understand the requirements of some.

Give me 24 hours and I will DU e-mail and see what we can come up with.

[Xyzse]

23. Thank you.

I tried going for a credit union at some point, but I wasn't sure what I was qualified as.

[Agschmid]

34. Some states have credit unions, some advertise for "state employees"...

But will take anyone, I know one such CU in Mass. If you are near there.

[YarnAddict]

27. Some banks do offer the line of credit

the one I worked for charged a $20 annual maintenance fee. I signed up for $1000 or so for when we were traveling. Don't think there was a charge for signing up.

It's really worth looking into. You can apply for as much credit as you think you might need, and approval is like any other loan. If this is just to cover overdrafts, it probably wouldn't have to be very much.

[Xyzse]

31. I actually already have that.

I just wanted to be part of a Credit Union for the sake of being in one.

[tammywammy]

24. My credit union offers overdraft protection

If I overdraw my account for a mere $35 per transaction they'll cover up to $5000 in transactions.

Overdraft is now, thankfully, an opt-in choice. I declined it.

[YarnAddict]

28. Smart move

What banks were doing was allowing people to use their debit cards basically without limits. Said it was to avoid customer embarassment. But, what was happening was that if you didn't realize your account was overdrawn, you could rack up literally hundreds of dollars in overdraft fees! My bank charged $32/overdraft. Gas, lunch, K-mart, grocery store--all of a sudden you were in a hole that was difficult to dig your way out of!

The law changed, and you now have the option of having a business decline your debit card, if your account doesn't have enough funds. I always recommended that people choose the decline option.

[mockmonkey]

10. Kwik Trip here...

doesn't charge either but my bank still charges me if I use Kwik Trip's ATM.

[YOHABLO]

25. Mmm QT does charge if you are not using Wells Fargo .. that's here in ATL

[EEO]

2. My father called his bank after a ridiculous fee and told them he could get better rates...

from the mafia.

[ReRe]

14. .

[tazkcmo]

3. Typical

Yet people (Includes my Sons) leave their money in these predatory banks like Wells Fargo, B of A, etc when there are ample alternatives. My bank has refunds up to $15.00 in ATM fees every month and I have no over draft because I have no checks and they never engaged in the CDS, high risk loan game that started all this mess. Shop around if you can folks.

[rpannier]

4. It's why I like living overseas

If I go to a bank outside mine it's about 70 cents
If I use the ATM at the post office it's free

[Art_from_Ark]

33. It's a little more in Japan

The fee for withdrawing money from an outside bank can range from $1 to $4, depending on the banks involved and whether or not one or both of them charge a transaction fee.

[rpannier]

35. Yeah. Japan is right across from me

Everything is more expensive -- sadly
I like going to Japan on vacation
But the won doesn't go as far there as the Yen does here

[Art_from_Ark]

36. Well, the yen has lost quite a bit of ground against the dollar in the past 3 years or so,

going from about 76 yen to the dollar to around 110 to the dollar. And in this month alone, the yen has lost a bit against the won as well, going from about 101.8 yen per 1000 won to around 103 yen per 1000 won today. But yeah, I could still take my yen to Korea and feel so much richer.

[strawberries]

6. I worked for BofA

for 13 years in IT. Our bonus were built in each year based on bank fees. I used to get 10K bonus and the big guys god only knows what they got.

Just thought I would share

[CarrieLynne]

7. overdraft fees - yeah that was probably me guys, sorry....

[Sunlei]

8. Someone in the gov mentioned Post Office banks for 'the people', when will those banks open?

I want to get away from Chase. They have triggerpoints for fees on everything.

[Lenomsky]

9. 5 pounds per day in UK if overdrawn EEK

No fee's to use any ATM though regardless of Bank although some private ATM's exist especially in London and you get charges anywhere from 1 to 4 pounds per withdrawal but I wouldn;t use one if it only cost 1p.

[davidthegnome]

11. Ridiculous

When I was younger, I thought having a debit card was pretty neat. I never used credit cards, because I watched my parents struggle with the debt.

The older I get though, the more inclined I am to trust only cash, only paper money. I have a pretty decent bank, small and local... but even they have some pretty absurd fees. So I don't have more than a few dollars in right now, and probably wouldn't put much in even if I could.

What I'm curious about with the ATM transaction fees though, is how much the owner/s of the establishment using them profits. For example, a small gas station... there's a three dollar fee or so for each transaction. How much goes to the store owner - and where does the rest of it go? To the bank? To some third party company?

[Arkansas Granny]

12. This is why the banks oppose the payday lenders so strongly. They want to be able to rip people off

instead of letting someone else do it.

[YarnAddict]

29. Payday loan places

are far worse than banks!!! The charge exhorbitant rates. Avoid them at all costs!!!

[Epiphany4z]

13. I just got a settlement check

from US bank. I had stopped using them like 5 yrs ago because they were staking and putting threw checks to maximize the fees. If I wrote 3 checks that where covered and made a mistake the next day on a 4th check they push the fourth check through first and then the other 3 so instead of one overdraft I had 3. Instead of paying $33 for the one overdraft I had to pay$99 for 3 of them.

Well this week some 5yrs later I got my $99 back in a settlement
check.

[CrispyQ]

20. Good for you.

They are evil fuckers.

[Purveyor]

15. Join a credit union if available in your area. I stopped corporate banking over 14 years

ago...

[RobinA]

17. I Stopped

corporate banking, but my credit union still charges an ATM fee for non-participating ATMs. Which is most. Luckily I have one near me that's in this consortium of CUs that don't charge fees at their machines, but if I leave my immediate area and need an ATM, it's fee time.

[Trillo]

18. When corruption is reined in, and profits fall,

banks must charge more.

I can't help but think this is another example where poor folks are hit so much harder than the wealthy. It is essentially hidden taxation.

If you're a business, and your account is overdrawn, you can deduct your fee. Why can't average citizens deduct these charges? The game is so rigged.

[napi21]

30. HAH! I worked as an accountant for several different companies,

one large and 3 smaller. When they OD their account, all they did was call the bank and get them to increase their line of credit. NONE of them ever paid a late fee to ANYONE, or any bank fees other than those negotiated wiwth the bank account, like a per check fee on deposits (usually about 1/4 to 1/2 a cent). This fee game is strictly for the average joe.

I got pissed at them quite a few years ago and switched to a credit union. I checked all those available and found several I would quality to join, then reviewed what they had to offer to find the best fit. After being with them for well over 7 years, I have yet to be anywhere that I didn't find a free ATM.

I do however use my credit card almost all the time. I have a card that gives you money back on all your purchases, and I request a check for $100 plus every few months. I don't worry about interest rates because I always pay off the balance at the end of every month. I wasn't always able to do that and I handled things differently then.

[YarnAddict]

26. Banking has changed a lot

and you have to stay on top of your account.

We had an account at the bank where I used to work that offered a free checking account if you had a mortgage of over $75,000. No problem. BUT because our interest rate was so low, the mortgage paid down a lot quicker than we thought, and with no notice they started charging us $15/month for an account we rarely use! Didn't catch it for three months. We were able to change to an account that is free as long as you get e-statements, but probably won't get our $45 back.

[Earth_First]

32. Our CU offers a overdraft protection tied to our savings account...

In addition to the $500 overdraft protection to our checking account that we utilize as our debit card account.

Additionally, our CU has reciprocal ATM benefits with two other local CU's for no-fee withdrawals.

Lastly, membership is available to new members by simply being a family member of a current member. Just sign up with your family member as your sponsor/reference.

I know mileage will vary from union to union, however we hit a home run with our local CU!

How people still bank with the corporate banks is beyond me.