Poll: Net cost of your checking account annually?

Non-investing personal finance issues including insurance, credit, real estate, taxes, employment and legal issues such as trusts and wills.
Post Reply

What is the net cost of your checking account annually?

It costs me more than $50 annually
4
2%
It costs me more than $10 annually
7
3%
It costs me more than $0 annually
15
6%
It costs me $0 annually
105
44%
It makes me less than $10 annually
55
23%
It makes me less than $50 annually
26
11%
It makes me more than $50 annually
29
12%
I don't have a checking account or something else
0
No votes
 
Total votes: 241

Topic Author
livesoft
Posts: 86079
Joined: Thu Mar 01, 2007 7:00 pm

Poll: Net cost of your checking account annually?

Post by livesoft »

I know most people use a free checking account, but I thought it would be interesting to see what the net cost of checking accounts really are.

For costs, please do not go to esoteric costs like weight gain from eating cookies in the bank lobby or driving to the bank. Here are some typical costs:
Monthly fees
Overdraft charge (oops!)
Unreimbursed ATM fees
Checks you purchase
Insufficient fund charges that were not reimbursed
Stop payment charges
Fees for Quicken downloads
Fees to mail you monthly statements if you have them mailed to you

One can subtract interest earned on checking, but not on savings. And do not add in benefits like free commissions on stock trades. You can add in cash bonuses for opening a checking account.

If you have more than one checking account, please answer for your workhorse family checking account.

And yes, I know the poll answers have gaps/overlaps for brevity and clarity, but I hope you know what is intended. You can change your vote if you like.

As with all polls, thanks for participating!
Wiki This signature message sponsored by sscritic: Learn to fish.
Topic Author
livesoft
Posts: 86079
Joined: Thu Mar 01, 2007 7:00 pm

Re: Poll: Net cost of your checking account annually?

Post by livesoft »

I had to remove a redundant choice in the poll, so the early birds may wish to re-vote. Thanks.
Wiki This signature message sponsored by sscritic: Learn to fish.
snowwing
Posts: 6
Joined: Sat Mar 13, 2010 4:19 pm

Re: Poll: Net cost of your checking account annually?

Post by snowwing »

I just opened a checking account at my local credit union. My new checks cost me eighteen dollars and will last me for as long as I have the account. The cash back on debit card purchases would have put me in the "makes me less than $50 annually" but for now I'm in "makes me less than $10 annually"
rkhusky
Posts: 17764
Joined: Thu Aug 18, 2011 8:09 pm

Re: Poll: Net cost of your checking account annually?

Post by rkhusky »

$20/year for checks.
Topic Author
livesoft
Posts: 86079
Joined: Thu Mar 01, 2007 7:00 pm

Re: Poll: Net cost of your checking account annually?

Post by livesoft »

Via a private message:
The real cost for me is the opportunity cost.

I get free checks and a safety deposit box by keeping $10,000 in the bank in some form. I don't do overdrafts, so the cost is zero.

Now if you let me subtract the 0.01% interest I earn, why not include (by adding) the interest I forego by not having that $10,000 earning 1% online? By that count, it costs me $99 a year. More, because I have more than $10k, less because I value the "free" safety deposit box (I think they value it at $20).
This is the kind of esoteric cost that I was trying to avoid in the poll. :)

My checking account can have $0.00 in it and it would still be free because I keep ETFs in the bank's affiliated brokerage.
Wiki This signature message sponsored by sscritic: Learn to fish.
Gill
Posts: 8221
Joined: Sun Mar 04, 2007 7:38 pm
Location: Florida

Re: Poll: Net cost of your checking account annually?

Post by Gill »

My account is free and pays interest, which has been so low in recent years I don't even receive a 1099. Before you ask, I still report the $1 or so of interest received. :happy
Gill
Cost basis is redundant. One has a basis in an investment | One advises and gives advice | One should follow the principle of investing one's principal
User avatar
midareff
Posts: 7711
Joined: Mon Nov 29, 2010 9:43 am
Location: Biscayne Bay, South Florida

Re: Poll: Net cost of your checking account annually?

Post by midareff »

Ally checking and MM (can write checks against it) provide in the $200 + range annually. FDIC insured and my first line of "what if" money, a year's retired portfolio draw.
camptalcott
Posts: 241
Joined: Wed Jul 23, 2014 4:45 pm
Location: Philadelphia PA

Re: Poll: Net cost of your checking account annually?

Post by camptalcott »

I have a checking account through my credit union. I don't have any annual fee, I get free ATM withdrawals just about every where and if I keep 500 bucks balance in it, I get reimbursed any atm fees another bank may charge to use their machines.
"He who dies with the most toys is still, nonetheless dead"
flyingaway
Posts: 3908
Joined: Fri Jan 17, 2014 9:19 am

Re: Poll: Net cost of your checking account annually?

Post by flyingaway »

So far, my checking accounts costed me about $32 this year. One previously free checking account at PNC changed me $8 for the account, which I closed it after that. My son overdrew his checking account, which was linked to my account, so it costed me another $24. Otherwise my checking account should be free, as I have automatic deposits from my employer.
User avatar
Meg77
Posts: 2835
Joined: Fri May 22, 2009 1:09 pm
Location: Dallas, TX

Re: Poll: Net cost of your checking account annually?

Post by Meg77 »

Account One (Joint, Primary): My local bank cut interest from 2% to 1.25% this year (up to $25K), so I earn about $250 a year with an average balance around $20K. I still get free ATMs and haven't had any OD fees; no monthly fees wither so my costs are nil.

Account Two (Joint, Secondary): I have to have this for payroll deposits since I work for a bank, but I don't want to bank where I work. Pays 1% interest, no free ATMS but no fees (I don't even use the debit card though). Paychecks are transferred to primary account fairly soon after receipt.

Account Three (Husband, Secondary): He works for a different bank and also has to have an account there for payroll. No free ATMs, no monthly fees, no interest.

Account Four (Me, Tertiary): I keep an account open at my former employer mainly to have an individual account but also because my rental and business checking are at that bank still, and it helps to have one individual account there for moving money in and out of those companies easily (also if I receive an inheritance I have a separate account in my name I can use). In addition, it was coded as a "private client" account since when I worked there I set it up that way. Minimal interest, no fees, free ATMS and checks. I even think I get a free safety deposit box I never used. My old friend/colleague is the banker on my account so we can justify expensing monthly lunches or happy hours.
"An investment in knowledge pays the best interest." - Benjamin Franklin
User avatar
backpacker
Posts: 1620
Joined: Mon Sep 22, 2014 2:17 pm

Re: Poll: Net cost of your checking account annually?

Post by backpacker »

My checking accounts make a bit of money. I use Ally for most things and have a local checking account with PNC.

To avoid a fee for the local PNC account, I have my Ally account set to automatically deposit and withdraw ~$2,000 every month. This counts as a sufficiently large "direct deposit", so the I'm not charged any monthly fees for the local bank even though I keep essentially no money there.

I use the Ally account for ATM withdrawals since they reimburse all ATM fees. They also provide free checks.
drawpoker
Posts: 2809
Joined: Mon May 19, 2014 6:33 pm
Location: Delmarva

Re: Poll: Net cost of your checking account annually?

Post by drawpoker »

Well, I guess I should check the box for "makes me more than $50". But that might get into all that esoteric stuff you don't want to hear about.
My bank gives free checking to anyone who has either $10K on deposit in checking, savings, loans, or combination thereof. At the time I signed up for this I did have that much in savings with them. Since then, I refinanced conventional mortgage into a fixed home equity loan, so theoretically I could withdraw the savings earning one-tenths of a percent (or whatever) and invest elsewhere for higher yield. But we won't go there to foul up your research.
There are no overdraft fees for anyone who signs up for overdraft protection if linked to another account.
I don't have a ATM card, don't deposit any checks that could bounce, so no outlays there. I get unlimited free checks, just the plain vanilla kind, nothing fancy or monogrammed. Got one year of a free safety deposit box rental; then 50% off regular price for that sized box for subsequent years.
You can disregard the value of cookies and punch in the lobby in your survey. Also the complimentary use of the time and temperature readings on Big Sign, which you failed to mention. But I don't see how you can blow off the market value of essential things that one would otherwise have to shell out $$$ for if not being provided as perks by the bank.
:?:
Stevedore
Posts: 35
Joined: Thu Aug 28, 2014 3:24 pm

Re: Poll: Net cost of your checking account annually?

Post by Stevedore »

Free checking account at BofA, including free checks. Earns about $1.12 interest each year. Dire Straits: "Money for nothing, and checks for free"! Or was it "chicks"?
placeholder
Posts: 8421
Joined: Tue Aug 06, 2013 12:43 pm

Re: Poll: Net cost of your checking account annually?

Post by placeholder »

Edit: A ghostly presence points out that my question was answered in the OP.
Last edited by placeholder on Wed Nov 19, 2014 12:41 pm, edited 2 times in total.
Fallible
Posts: 8798
Joined: Fri Nov 27, 2009 3:44 pm

Re: Poll: Net cost of your checking account annually?

Post by Fallible »

Pay apx. $7 for checks, earn pittance for interest.
"Yes, investing is simple. But it is not easy, for it requires discipline, patience, steadfastness, and that most uncommon of all gifts, common sense." ~Jack Bogle
User avatar
SpringMan
Posts: 5422
Joined: Wed Mar 21, 2007 11:32 am
Location: Michigan

Re: Poll: Net cost of your checking account annually?

Post by SpringMan »

I voted $0 but I feel there is a big cost in missed opportunity. I tend to keep more money in checking than necessary, money that would likely do better being invested.
Best Wishes, SpringMan
Bungo
Posts: 1138
Joined: Wed Sep 28, 2011 11:28 am

Re: Poll: Net cost of your checking account annually?

Post by Bungo »

My credit union charges $4/month for the bill paying service, but reimburses it because I use direct deposit and e-statements. They didn't charge me for anything else. Net cost zero. (Actually positive, because it pays me some pittance of interest.)

I did get dinged by other banks' ATMs a few times, maybe $20 total.
Caduceus
Posts: 3527
Joined: Mon Sep 17, 2012 1:47 am

Re: Poll: Net cost of your checking account annually?

Post by Caduceus »

For costs, please do not go to esoteric costs like weight gain from eating cookies in the bank lobby or driving to the bank.
That's funny. Based on the costs defined in the poll, mine would be less than $20 per annum (avoidable, and totally my fault from a mistake I made this year)

But I think some of the other costs aren't esoteric at all. Minimum deposits represent a real cost. Isn't that the whole reason the banking industry shifted to this strategy? They probably had some high-priced consultants tell them that clients would not like paying a monthly fee for checking accounts, so now you get perks depending on the amount of money you deposit with them. If the difference between the risk-free rate for your duration (something like an intermediate term bond) and what the bank pays is 2%, I think 2% of your deposit is a real cost, unless there is truly no opportunity cost (e.g. you fulfill the minimum deposit requirement at Wells Fargo by holding ETFs there instead.)

Incidentally, brokerages have better checking accounts than most full-service banks. Most things are free, even international ATM withdrawals.
User avatar
batpot
Posts: 1284
Joined: Thu Jul 11, 2013 8:48 pm

Re: Poll: Net cost of your checking account annually?

Post by batpot »

Caduceus wrote:Incidentally, brokerages have better checking accounts than most full-service banks. Most things are free, even international ATM withdrawals.
Can you show me an example?
User avatar
House Blend
Posts: 4878
Joined: Fri May 04, 2007 1:02 pm

Re: Poll: Net cost of your checking account annually?

Post by House Blend »

If we go back to the era of 5% interest on cash deposits, I'll be earning considerably more than $10/year at my credit union.

But not nowadays. Less than $10.

Last time I paid any fees to them whatsover was about 5 years ago, when I found out a month late that they had started charging $1/month for paper statements. (So now I stick with e-statements. Duh.) I get free checks, but that's somewhat hypothetical, since I may already have enough paper checks to last me for the rest of my life.

In my credit union savings account, I've found a fantastic way to game the system. I have a little over $300 in the account, with an APR of 0.06%. That works out to about 1.5 cents per month. So it rounds up to $0.02, for an effective APR of 0.08%. :idea: :moneybag :!:
ddunca1944
Posts: 941
Joined: Fri Apr 01, 2011 1:49 pm

Re: Poll: Net cost of your checking account annually?

Post by ddunca1944 »

I put "0". However, I do pay $12 annually to belong to the credit union's "Premier Club" (for those over 60). For the $12, I get a box of free checks and 50% off the cost of a safe deposit box. Since a box of checks costs more than $12, I figure I'm still ahead.
Caduceus
Posts: 3527
Joined: Mon Sep 17, 2012 1:47 am

Re: Poll: Net cost of your checking account annually?

Post by Caduceus »

Can you show me an example?
Sure thing, batpot. Schwab's High Yield Investor Checking Account gives fee rebates from any ATM worldwide, as does Fidelity's Cash Management Account. You will likely be assessed a fee by the foreign bank, but Schwab and Fidelity will then reimburse you for it.
User avatar
greg24
Posts: 4512
Joined: Tue Feb 20, 2007 9:34 am

Re: Poll: Net cost of your checking account annually?

Post by greg24 »

Our rewards checking pays 2.5% APY (up to $20k balance).

We do have to make twelve or more debits per month, which represents some small opportunity cost.
drawpoker
Posts: 2809
Joined: Mon May 19, 2014 6:33 pm
Location: Delmarva

Re: Poll: Net cost of your checking account annually?

Post by drawpoker »

ddunca1944 wrote:.... Since a box of checks costs more than $12, I figure I'm still ahead.
Why do you say that? More than $12 ?

Before I got in on the freebie checks, I paid AmEx $9.99 with free shipping for a standard (200) box of checks. (The first order of 200 for new customers is only $6.99)
Based on the ads I still see that price seems to be holding.
Ninegrams
Posts: 557
Joined: Sun Aug 17, 2014 6:12 pm

Re: Poll: Net cost of your checking account annually?

Post by Ninegrams »

Chase offers free "Premier Plus" checking for veterans, which includes:

no monthly service fee ( no minimum balance requirement )
free checks, money orders, cashiers checks and travelers checks
free safe deposit box(3x5)

A pretty fair deal of which I'm happy to participate. The megabanks get a lot of scorn ( a lot of it well deserved IMO) heaped on them, but have to give a kudos to Chase on this.
User avatar
Ged
Posts: 3945
Joined: Mon May 13, 2013 1:48 pm
Location: Roke

Re: Poll: Net cost of your checking account annually?

Post by Ged »

I don't have any fees because of direct deposits. Never had an overdraft.

I did order some checks when I opened the account. That was in the 1990's. I write maybe 3 checks a year. I haven't ordered more since but I might because the the year has a preprinted prefix of 19 in the date field and that sort of looks funny even though I cross it out.
Lynette
Posts: 2407
Joined: Sun Jul 27, 2014 9:47 am

Re: Poll: Net cost of your checking account annually?

Post by Lynette »

.....
Last edited by Lynette on Sat Jan 12, 2019 3:44 am, edited 1 time in total.
sport
Posts: 12094
Joined: Tue Feb 27, 2007 2:26 pm
Location: Cleveland, OH

Re: Poll: Net cost of your checking account annually?

Post by sport »

My bank used to pay me 5 cents for each direct deposit and each bill-pay check written. However, when interest rates dropped, they discontinued that program.
User avatar
Steelersfan
Posts: 4129
Joined: Thu Jun 19, 2008 8:47 pm

Re: Poll: Net cost of your checking account annually?

Post by Steelersfan »

The bank charges me nothing.

I get three cents off gas for every $50 I spend on groceries and gift cards if I use their debit card.

That comes to a little more than $50 a year. It would be more if I bought more groceries, drove more miles and had a bigger gas tank.
Topic Author
livesoft
Posts: 86079
Joined: Thu Mar 01, 2007 7:00 pm

Re: Poll: Net cost of your checking account annually?

Post by livesoft »

batpot wrote:
Caduceus wrote:Incidentally, brokerages have better checking accounts than most full-service banks. Most things are free, even international ATM withdrawals.
Can you show me an example?
Wells Fargo PMA package has free international ATM withdrawals and great exchange rates.
Additional benefits available on the PMA Premier Checking account for PMA customers with $250,000 or more in qualifying PMA relationship balances:

ATM benefits 4
Waived Wells Fargo ATM access fee — unlimited (U.S. and International)
Reimbursement of surcharges imposed by third parties if you use a non-Wells Fargo ATM (U.S. only)
Reimbursement of up to five surcharges per statement cycle imposed by third parties if you use a non-Wells Fargo ATM (International only)
Wiki This signature message sponsored by sscritic: Learn to fish.
User avatar
batpot
Posts: 1284
Joined: Thu Jul 11, 2013 8:48 pm

Re: Poll: Net cost of your checking account annually?

Post by batpot »

Caduceus wrote:
Can you show me an example?
Sure thing, batpot. Schwab's High Yield Investor Checking Account gives fee rebates from any ATM worldwide, as does Fidelity's Cash Management Account. You will likely be assessed a fee by the foreign bank, but Schwab and Fidelity will then reimburse you for it.

Will look into the Schwab acct...Fidelty's fine print reads as follows:
Please note, there is a foreign transaction fee of one percent that is not waived, which will be included in the amount charged to your account.
surfstar
Posts: 2853
Joined: Fri Sep 13, 2013 12:17 pm
Location: Santa Barbara, CA

Re: Poll: Net cost of your checking account annually?

Post by surfstar »

Ha - free box of checks. I have and still use checks from two addresses ago, which means 10+ years, minimum. I believe I got 3 boxes for $10 at the time.
Most used: rent check 12/yr
next ? - probably for camping fees ~6/yr
User avatar
ogd
Posts: 4876
Joined: Thu Jun 14, 2012 11:43 pm

Re: Poll: Net cost of your checking account annually?

Post by ogd »

I am in the fortunate $50+ profit camp here. No fees of any kind and interest YtD is $160 and my use is actually checking, i.e. a reasonable cushion of cash between deposits and bills and not a savings account.

There are too few of us in this bucket. We need more people! Some of y'all from the -$50 and above, for example.
User avatar
leonidas
Posts: 487
Joined: Sun Jul 10, 2011 8:58 am
Location: Mansfield Township, NJ

Re: Poll: Net cost of your checking account annually?

Post by leonidas »

Schwab Investor Checking. Free everything including paper checks. All ATM charges reimbursed without limit. No over draft fees.
letsgobobby
Posts: 12073
Joined: Fri Sep 18, 2009 1:10 am

Re: Poll: Net cost of your checking account annually?

Post by letsgobobby »

I earn 2.25% APY on up to $20,000 in daily balances, so that is about $500 per year. I get all ATM fees reimbursed, haven't paid one of those in years. Our check costs are less than $5 per year since we mostly use free bill pay through the credit union.

They even threw in a free wire last year for no particular reason.

We have two of the above accounts so that is about $900 per year before taxes (the rates and account maxes vary a little between our accounts).

I guess these accounts aren't available everywhere, but it surprises me that more people don't use them. 12 debit card (credit or debit) transactions per month, direct deposit, and e-statements are a pretty low bar to earn $500 per year.
User avatar
Artsdoctor
Posts: 6063
Joined: Thu Jun 28, 2012 3:09 pm
Location: Los Angeles, CA

Re: Poll: Net cost of your checking account annually?

Post by Artsdoctor »

Nice job for people getting more than $100 per year without strings attached!

We use the Vanguard Advantage account. Free checks, electronic transfers, they will mail checks free of charge, cash flow couldn't be easier, never had a problem with reliability, and certainly easy access. I was surprised at how few stamps we now use, so that's a savings in itself.

One day, the money market accounts will start paying more respectable interest but I'm not holding my breath.
mlipps
Posts: 1099
Joined: Thu Jun 21, 2012 9:35 am

Re: Poll: Net cost of your checking account annually?

Post by mlipps »

ddunca1944 wrote:I put "0". However, I do pay $12 annually to belong to the credit union's "Premier Club" (for those over 60). For the $12, I get a box of free checks and 50% off the cost of a safe deposit box. Since a box of checks costs more than $12, I figure I'm still ahead.
You use an entire box of checks every year?? I'm on my third year with the same box! (Free at PNC with my Performance Select account!)
User avatar
ofcmetz
Posts: 2465
Joined: Tue Feb 08, 2011 7:09 pm
Location: Louisiana

Re: Poll: Net cost of your checking account annually?

Post by ofcmetz »

I use a rewards checking at a credit union associated with a local university. As long as I do one direct deposit and have 15 debit card transactions it pays me 2.25% interest on the first $10,000 in balance. I make about $18 or so a month in interest. The only cost was a one time $5 fee to join the credit union which I payed over 15 years ago.

Edit: I'd like to add that in addition to the interest, I frequently hang out at the local branch while on duty and enjoy free Community Coffee brand coffee.
Never underestimate the power of the force of low cost index funds.
madbrain
Posts: 6809
Joined: Thu Jun 09, 2011 5:06 pm
Location: San Jose, California

Re: Poll: Net cost of your checking account annually?

Post by madbrain »

batpot wrote:Fidelty's fine print reads as follows:
Please note, there is a foreign transaction fee of one percent that is not waived, which will be included in the amount charged to your account.
Fidelity's fine print does not match reality, based on my experience looking at exchange rates for the days I made international ATM withdrawals.
Also, many foreign banks don't charge ATM fees, so there is nothing to reimburse.
User avatar
Dtort
Posts: 45
Joined: Tue Jun 24, 2014 7:17 pm

Re: Poll: Net cost of your checking account annually?

Post by Dtort »

letsgobobby wrote:I earn 2.25% APY on up to $20,000 in daily balances, so that is about $500 per year. I get all ATM fees reimbursed, haven't paid one of those in years. Our check costs are less than $5 per year since we mostly use free bill pay through the credit union.

We have two of the above accounts so that is about $900 per year before taxes (the rates and account maxes vary a little between our accounts).

I guess these accounts aren't available everywhere, but it surprises me that more people don't use them. 12 debit card (credit or debit) transactions per month, direct deposit, and e-statements are a pretty low bar to earn $500 per year.

What he said!
Our credit union had a similar sweet deal - about 2% on balances up to $25,000. With each of us having an account, it was about $80/month. Even with paying most bills online, it's easy to get 10 debit swipes a month - shoot, buy a couple of gallons of gas or buy a soft drink from a machine that takes a card.
(Note that I said "HAD a sweet deal". They are quietly scaling it back - now the limit is $20k and interest is about 1.7%)
Grasshopper
Posts: 1209
Joined: Sat Oct 09, 2010 3:52 pm

Re: Poll: Net cost of your checking account annually?

Post by Grasshopper »

I do surveys for my bank, so after free checking, Quicken fee, I net over $200 a year. :beer beer money :mrgreen:
Wolkenspiel
Posts: 558
Joined: Wed Sep 30, 2009 7:45 am

Re: Poll: Net cost of your checking account annually?

Post by Wolkenspiel »

madbrain wrote:
batpot wrote:Fidelty's fine print reads as follows:
Please note, there is a foreign transaction fee of one percent that is not waived, which will be included in the amount charged to your account.
Fidelity's fine print does not match reality, based on my experience looking at exchange rates for the days I made international ATM withdrawals.
Also, many foreign banks don't charge ATM fees, so there is nothing to reimburse.
Same experience here. I use my Fidelity MySmart Cash at International ATMs regularly, and didn't notice a 1% fee. For kicks, I checked some of my transactions this summer: Withdrew 200 Euro on 5/21, charge to my checking account was 274.55. With the Oanda.com interbank rate, this should have cost $274.034. Another transaction on 7/17: $272.45 vs $$272.014. So, that looks more like 0.1%, which I can live with.
scrabbler1
Posts: 2798
Joined: Fri Nov 20, 2009 1:39 pm

Re: Poll: Net cost of your checking account annually?

Post by scrabbler1 »

I paid about $10 for 5 years of paper checks, so about $2 a year. However, my credit card cashback rewards pays me an extra 10% of the reward if I deposit it directly into my checking account. So, in theory, that could be considered income like interest income, although I just consider it an enhanced cashback reward.
User avatar
joe8d
Posts: 4545
Joined: Tue Feb 20, 2007 7:27 pm
Location: Buffalo,NY

Re: Poll: Net cost of your checking account annually?

Post by joe8d »

Senior Citizen w/ direct deposit Of SS.No cost. Checks are from " Checks in the Mail ".
All the Best, | Joe
User avatar
siamond
Posts: 6010
Joined: Mon May 28, 2012 5:50 am

Re: Poll: Net cost of your checking account annually?

Post by siamond »

E*Trade checking. ATM fees reimbursed. Can't remember ever paying something. And I get interest on my balance, but since I always keep the balance rather low and interest rates are still near bottom, this is just a few bucks.
Post Reply