Chase Bank Trying to Impose $10 fee a month

[helpme2010]

I just received my Chase banking statement and since the Obama administration is trying to bring justice to the consumer from the banking/credit card institutions, the banks are looking for ways to screw us again.

e.g. Chase sent me a list of rules I have to follow or else I will be charged a $10 month fee beginning in Feb 2011. e.g. I believe from first glance I have to now keep $1,500 minimum balance in my FREE checking account or it may be $5,000, I have to re-read this carefully (or another set of rules including using direct deposit).

If I can't maintain this much money minimum each month, I will simply take my business to BofA for a free checking account.

I refuse to get screwed by a bank I have given my business to for many years.

[WhatMoney]

Many banks, especially the nationals, are eliminating their "free" checking accounts. Those accounts were paid for by outrageous fee policies that are now illegal. They have to keep the profits up somehow. Monthly direct deposit or a large minimum balance is now the norm for these banks. When Chase took over (stole) Washington Mutual they grandfathered in the free checking only for WM customers. That's going away in most states soon, and any new account opened with Chase has minimums or direct deposit requirements to keep it "free". I closed all three of my Chase (ex WM) accounts one week after the takeover. Smaller regional banks still have free checking if you search.

BofA has free checking only for online-signup accounts in my region. And there is no guarantee that will not change. BofA is only marginally better than Chase - and both have crappy local branch lobbies and service - they figure if you bank with them locally you must be stupid and deserve no respect, and treat you accordingly.

[frogger]

BofA is only marginally better than Chase - and both have crappy local branch lobbies and service - they figure if you bank with them locally you must be stupid and deserve no respect, and treat you accordingly.

You got that right.........

[RichM]

BofA is pretty horrible, too. Actually, pretty much all of the big-name banks suck. Unless you're Rockefeller, they treat you like dirt. I'd start looking at credit unions, instead.

Having said that, I do have one account at a bank. It's an online bank called "PerkStreet." I won't provide a link because I've noticed that links to banks seem to frowned upon, for good reasons I'm sure. But I'll be objective enough about PerkStreet that I think mentioning their name will be okay, and you can find the link yourself if you're interested. If the mods disagree, then just delete this post. I won't pout. It's your board, so you make the rules. But here's my take on PerkStreet, pending mod approval.

On the "good" side, PerkStreet has no monthly charges as long as you use the debit card to make at least one purchase a month. If you don't, there's a $4.95 fee. They have a very generous rewards program and excellent, U.S.-based customer service by telephone. They also have a lot of free ATM arrangements; so when I use my PerkStreet debit card at a Chase or 7-11 ATM, for example, there are no ATM fees from either PerkStreet or the bank that owns the ATM. (ATM withdrawals do not count toward the one required purchase per month to avoid the fee, however.)

On the "bad" side, PerkStreet is slow at processing ACH transactions. It typically takes two or three business days, and sometimes as long as five days, for an ACH from my credit union accounts to be available in my PerkStreet account. Transfers from my PayPal account are also slow: Transfers from PayPal to my credit union accounts rarely take more than a day, but to my PerkStreet account they take at least two or three days. I'm not sure why this is.

It's also a bit of a pain to make cash or check deposits to my PerkStreet account. In fairness, PerkStreet tries to make it as easy as possible, but it's still awkward.

Cash deposits can be made for free at any MoneyGram location, but doing so requires talking to "Bernie," "Cathy," "Bruce," etc. from Bangalore from a red courtesy phone (which always reminds me of the movie "Airplane"), providing quite a bit of information over the less-than-crystal-clear connection, and then hoping that "Bernie," "Cathy," or "Bruce" got it right for the next three days or so, because that's how long it'll take for MoneyGram to turn the money over to PerkStreet. Also, many MoneyGram locations are in less-than-wonderful neighborhoods (although I'm told that all WalMart stores have them).

Check deposits can be made by U.S. mail for free, using postpaid envelopes provided by PerkStreet. But in my case, my local post office is staffed by such a bunch of incompetent bozos, and loses so much mail both incoming and outgoing, that I don't even consider this an option for me.

Check deposits also can be sent overnight, for free, from any UPS or Mailboxes Etc. store. But you first have to log onto your PerkStreet account, print up an authorization form, and bring it to the store location. Not exactly a hardship, but still less convenient than simply walking into a bank and making a deposit.

So in short, and in fairness, PerkStreet tries to do everything they can to make making deposits easy. But it's still a bit cumbersome. And in all cases the money will not be available until two or three days after they receive the check. So if you use overnight and get the deposit in before the last pickup, still figure three days before you can use the money.

So why do I stay with them? Because they offer the best cash rewards program I've come across anywhere. If I worked for someone and had direct deposit, then they would be as close to a perfect bank as I've ever dealt with, because then the cumbersome nature of making deposits would be a moot issue. But as a self-employed person who makes multiple deposits every week, it's a pain.

So what I do is this: I have fee-free accounts at two local credit unions. One has a state-issued "open" charter and can accept anyone as a member, and the other I qualify for as a government contractor. I can make cash or check deposits to either credit union account at almost any credit union in the state, so it's way convenient.

Then once a month or so I authorize an ACH from one of the credit union accounts (or sometimes from my PayPal account if that's where the money happens to be at the moment) to my PerkStreet account, and I use the PerkStreet debit card for routine purchases in order to avoid the $4.95 monthly fee and get the rewards. As long as I use the PerkStreet debit card to make one purchase a month, the fee is waived.

For me, I make a lot of debit card purchases, both online and in stores, so the rewards add up to a tidy sum over time. But if rewards aren't important to you, then I'd say forget the banks altogether and find yerself a credit union. "Share draft" (checking) accounts at credit unions are usually free with no strings attached, and credit unions treat you a lot better than banks do.

That's my opinion, and it's worth every penny you paid for it. Your mileage may vary.

-Rich

[tobee43]

Many banks, especially the nationals, are eliminating their "free" checking accounts. Those accounts were paid for by outrageous fee policies that are now illegal. They have to keep the profits up somehow. Monthly direct deposit or a large minimum balance is now the norm for these banks. When Chase took over (stole) Washington Mutual they grandfathered in the free checking only for WM customers. That's going away in most states soon, and any new account opened with Chase has minimums or direct deposit requirements to keep it "free". I closed all three of my Chase (ex WM) accounts one week after the takeover. Smaller regional banks still have free checking if you search.

BofA has free checking only for online-signup accounts in my region. And there is no guarantee that will not change. BofA is only marginally better than Chase - and both have crappy local branch lobbies and service - they figure if you bank with them locally you must be stupid and deserve no respect, and treat you accordingly.

that's an interesting point...another fee they just threw in....bank transfers...while it always cost us approx $25 in fees to SEND a transfer (although i do understand some banks didn't even charge for that)...never did we have a fee when we rec'd a payment via a bank transfer....i called the bank and they reversed it out of courtesy, however, explained it's now a "new" fee they are adding to their already long list of fees since the regulation change.

however, our particular bank still allows "free" checking provided you have auto deposit...so that's one good thing..until they chance that!

[helpme2010]

I am going to carefully read the rules next month and if having a minimum balance of $1,500 is all that is required to meet the free checking, I will continue the account with them, if not, I am leaving. I would consider the online with BofA, but if they change the rules (which could likely be possible), then yes, I will go to a local bank or a credit union.

I didn't choose chase, they chose me, they gobbled up wash mutual, and wash mutual gobbled up my previous bank which gobbled up my previous bank. There is nowhere to hide. But I refuse to pay a bank money for their services.

[Peeps]

I've had great luck with an online bank too, though not the one you mentioned. I use the one with the big orange ball. Just about everything is free. They do electronic bill-pay, person-to-person transfers and will also send paper checks per request. Lots of free ATMs and a free visa debit card. It is interest bearing, though not an earth-shattering amount. No minimum balance. The only downside is that you can't mail in paper-check deposits. I also have a savings account with the same orange-dot bank and the interest rates are pretty good. Their CD rates are pretty competitive. It's really easy to move money around with this particular bank. Everything is updated quickly. In October and November they gave a 1% cashback bonus on debit card purchases, which was a nice little perk.

One of the reasons I like the online banking so much is because it helps me see my spending a bit differently. It's easier to avoid compulsive purchases... something I personally have to be mindful of. Plus I haven't paid a fee on anything yet. Love it!

[clevelandmom]

My mattress is looking better and better, and I'm not just talking about sleeping. I've so had it with these legalized crime institutions.

[helpme2010]

My mattress is looking better and better, and I'm not just talking about sleeping. I've so had it with these legalized crime institutions.

when you look at the interest rate a interest rate checking account pays, your mattress probably pays a higher amount - ahahahah

I went to the free checking so I wouldn't have to pay any fees. I am willing not to be paid interest - which didn't amount to anything anyways, but I refuse to pay money for a company that makes money off of having me as a customer. I know my small amount right now doesn't mean a hill of beans to Chase, but there have been and will again be times when I will have more money and they will want my business.

I think these large banks and credit companies don't care about customer service, because they know they can simply just buy up banks and institutions and instantly get millions of new customers. So they lose 10% through bad service, hey they can simply purchase another bank, fire thousands of employees and instantly get millions of more customers again. This is a sad way to do business

[RichM]

....

I know my small amount right now doesn't mean a hill of beans to Chase, but there have been and will again be times when I will have more money and they will want my business.

....

I like your spirit. More people need to think that way!

-Rich

[catleg]

Chase sucks.

[tobee43]

that's GREAT cat!!!!!!!!!!!

[helpme2010]

I love it!!! Go Chase your own tail Chase!!!

[catleg]

It's from zerohedge.com, guy named william banzai 7 puts these up.
You can see all his work here.

[RichM]

I think all that Chase and the rest of the banks are going to succeed at doing is driving more and more people to credit unions. I made the switch a while ago -- and I haven't looked back. My "home" credit union is growing at a rapid rate, driven mainly by people who are simply fed up with banks.

-Rich