Poll: Net cost of your checking account annually?
Poll: Net cost of your checking account annually?
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!
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!
Re: Poll: Net cost of your checking account annually?
I had to remove a redundant choice in the poll, so the early birds may wish to re-vote. Thanks.
Re: Poll: Net cost of your checking account annually?
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"
Re: Poll: Net cost of your checking account annually?
$20/year for checks.
Re: Poll: Net cost of your checking account annually?
Via a private message:
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.
This is the kind of esoteric cost that I was trying to avoid in the poll.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).
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.
Re: Poll: Net cost of your checking account annually?
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.
Gill
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
Re: Poll: Net cost of your checking account annually?
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.
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Re: Poll: Net cost of your checking account annually?
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"
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Re: Poll: Net cost of your checking account annually?
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.
Re: Poll: Net cost of your checking account annually?
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.
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
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Re: Poll: Net cost of your checking account annually?
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.
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.
Re: Poll: Net cost of your checking account annually?
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 $$$ for if not being provided as perks by the bank.
My bank gives free checking to anyone who has either $10K on deposit in checking, savings, loans, or combination thereof. At the time I signed up for this I did have that much in savings with them. Since then, I refinanced conventional mortgage into a fixed home equity loan, so theoretically I could withdraw the savings earning one-tenths of a percent (or whatever) and invest elsewhere for higher yield. But we won't go there to foul up your research.
There are no overdraft fees for anyone who signs up for overdraft protection if linked to another account.
I don't have a ATM card, don't deposit any checks that could bounce, so no outlays there. I get unlimited free checks, just the plain vanilla kind, nothing fancy or monogrammed. Got one year of a free safety deposit box rental; then 50% off regular price for that sized box for subsequent years.
You can disregard the value of cookies and punch in the lobby in your survey. Also the complimentary use of the time and temperature readings on Big Sign, which you failed to mention. But I don't see how you can blow off the market value of essential things that one would otherwise have to shell out $$$ for if not being provided as perks by the bank.
Re: Poll: Net cost of your checking account annually?
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"?
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Re: Poll: Net cost of your checking account annually?
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.
Re: Poll: Net cost of your checking account annually?
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
Re: Poll: Net cost of your checking account annually?
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
Re: Poll: Net cost of your checking account annually?
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.
I did get dinged by other banks' ATMs a few times, maybe $20 total.
Re: Poll: Net cost of your checking account annually?
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)For costs, please do not go to esoteric costs like weight gain from eating cookies in the bank lobby or driving to the bank.
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.
Re: Poll: Net cost of your checking account annually?
Can you show me an example?Caduceus wrote:Incidentally, brokerages have better checking accounts than most full-service banks. Most things are free, even international ATM withdrawals.
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Re: Poll: Net cost of your checking account annually?
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%.
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%.
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Re: Poll: Net cost of your checking account annually?
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.
Re: Poll: Net cost of your checking account annually?
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.Can you show me an example?
Re: Poll: Net cost of your checking account annually?
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.
We do have to make twelve or more debits per month, which represents some small opportunity cost.
Re: Poll: Net cost of your checking account annually?
Why do you say that? More than $12 ?ddunca1944 wrote:.... Since a box of checks costs more than $12, I figure I'm still ahead.
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.
Re: Poll: Net cost of your checking account annually?
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.
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.
Re: Poll: Net cost of your checking account annually?
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.
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.
Re: Poll: Net cost of your checking account annually?
.....
Last edited by Lynette on Sat Jan 12, 2019 3:44 am, edited 1 time in total.
Re: Poll: Net cost of your checking account annually?
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.
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Re: Poll: Net cost of your checking account annually?
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.
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.
Re: Poll: Net cost of your checking account annually?
Wells Fargo PMA package has free international ATM withdrawals and great exchange rates.batpot wrote:Can you show me an example?Caduceus wrote:Incidentally, brokerages have better checking accounts than most full-service banks. Most things are free, even international ATM withdrawals.
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)
Re: Poll: Net cost of your checking account annually?
Caduceus wrote: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.Can you show me an example?
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.
Re: Poll: Net cost of your checking account annually?
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
Most used: rent check 12/yr
next ? - probably for camping fees ~6/yr
Re: Poll: Net cost of your checking account annually?
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.
There are too few of us in this bucket. We need more people! Some of y'all from the -$50 and above, for example.
Re: Poll: Net cost of your checking account annually?
Schwab Investor Checking. Free everything including paper checks. All ATM charges reimbursed without limit. No over draft fees.
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Re: Poll: Net cost of your checking account annually?
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.
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.
- Artsdoctor
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Re: Poll: Net cost of your checking account annually?
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.
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.
Re: Poll: Net cost of your checking account annually?
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!)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.
Re: Poll: Net cost of your checking account annually?
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.
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.
Re: Poll: Net cost of your checking account annually?
Fidelity's fine print does not match reality, based on my experience looking at exchange rates for the days I made international ATM withdrawals.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.
Also, many foreign banks don't charge ATM fees, so there is nothing to reimburse.
Re: Poll: Net cost of your checking account annually?
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%)
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Re: Poll: Net cost of your checking account annually?
I do surveys for my bank, so after free checking, Quicken fee, I net over $200 a year. beer money
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Re: Poll: Net cost of your checking account annually?
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.madbrain wrote:Fidelity's fine print does not match reality, based on my experience looking at exchange rates for the days I made international ATM withdrawals.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.
Also, many foreign banks don't charge ATM fees, so there is nothing to reimburse.
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Re: Poll: Net cost of your checking account annually?
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.
Re: Poll: Net cost of your checking account annually?
Senior Citizen w/ direct deposit Of SS.No cost. Checks are from " Checks in the Mail ".
All the Best, |
Joe
Re: Poll: Net cost of your checking account annually?
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.