PSA: Bank of America now charges $12/month for checking

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ThriftyPhD
Posts: 735
Joined: Mon Jul 31, 2017 10:43 am

Re: PSA: Bank of America now charges $12/month for checking

Post by ThriftyPhD » Sat Feb 17, 2018 9:32 pm

JMacDonald wrote:
Sat Feb 17, 2018 7:50 pm
ThriftyPhD wrote:
Thu Feb 15, 2018 12:37 pm
Maverick3320 wrote:
Thu Feb 15, 2018 8:10 am
What's the upside of using BoA over your local credit union?

(legit question)
Depends on your local credit union. Most credit unions have non existent or terrible online systems. If these are valuable to you, this can be a deal breaker. BofA and other big national banks generally have good websites/apps/systems for things like bill pay, wire transfers, account transfers, mobile deposit, etc. Does your local credit union let you insert a stack of checks to deposit in the ATM, auto scan for amounts, and immediately deposit, or do you need to use a deposit slip and an envelope and a worker might get to it tomorrow? Many of the ATMs my local credit union put out didn't even accept deposits...

If your local credit union doesn't reimburse 3rd party ATM fees (mine doesn't), then using it outside of your hometown is costly. BofA has ATMs in many states. If you work more than a couple miles from where you live, your local credit union isn't very local to one of those locations. If BofA or another big bank has a branch in your hometown and worktown, this is a big bonus. If your spouse works in a different town than you, does the credit union have a branch there as well?

Now, if your local credit union has a killer online system, refunds all 3rd party ATM fees, allows things like mobile deposits, and is local to both home and work, then the credit union is an attractive option.
You need to get a better credit union. I have been with my credit union for 40 years, and it meets all my needs. I rarely have to visit a branch as I do everything online. Here are the ATMs I can use: https://www.co-opfs.org/Shared-Branches-ATMs. As for all those items you mentioned, my financial life is simple. My money is deposited online and withdrawn online. I can transfer money from and to Vanguard online. I never pay any fees.
That's the problem with a local credit union. If your LOCAL credit union isn't good, then you can't have a good LOCAL credit union :) The only way I could get a better one is to move again, and that seems like a lot of hassle for very little upside.

I've lived in 8 towns in 4 states over the last 20 years. I've had credit union accounts with several, and a few I still have open (in the process of closing). None refund 3rd party ATM, all have terrible online, only one allows mobile deposits and to do that requires jumping through a lot of hoops which is impossible now that I'm no longer there in person.

All I need is a place to deposit my paycheck, pay my bills online, pull cash out of an ATM, deposit cash and checks either at ATM or using mobile, and then transfer remaining cash to a more appropriate location (brokerage or online savings with decent rates). A big national bank fills this roll better than any CU ever could, so that's the upside of a big bank over my local CU, for me.

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arcticpineapplecorp.
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Re: PSA: Bank of America now charges $12/month for checking

Post by arcticpineapplecorp. » Sat Feb 17, 2018 9:37 pm

sunny_socal wrote:
Sat Feb 17, 2018 12:39 am
I already have 3 CU accounts! :beer

At least I'm getting a free safe deposit box out of BofA :mrgreen:
Be careful. You already admitted they changed their policy. What makes you so sure they won't do that again? Here's a post from 2006 where a boglehead had a five figure balance at BofA (that's one more figure than you have now!) and yet BofA suddenly changed their policy and wanted to start charging for the safe deposit box:

viewtopic.php?t=202828

and remember nothing's really free in life:
by Grt2bOutdoors » Sun Jul 23, 2017 7:35 pm
You do realize you are paying for it as am I, the balances are being invested by the bank, the interest earned on it is paying for the box and then some.
viewtopic.php?t=224066#p3461950
"Invest we must." -- Jack Bogle | “The purpose of investing is not to simply optimise returns and make yourself rich. The purpose is not to die poor.” -- William Bernstein

gundlached
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Joined: Wed Nov 18, 2015 12:45 pm

Re: PSA: Bank of America now charges $12/month for checking

Post by gundlached » Sat Feb 17, 2018 10:40 pm

Pajamas wrote:
Wed Feb 14, 2018 1:23 pm
Seems like you expect a lot for next to nothing. As a BoA shareholder, I am glad to see that they are instituting fees to cover the cost of providing services to you.
You, sir, are a credit to capitalism.

anoop
Posts: 710
Joined: Tue Mar 04, 2014 1:33 am

Re: PSA: Bank of America now charges $12/month for checking

Post by anoop » Sat Feb 17, 2018 11:08 pm

I see a lot of recommendations for CUs. Not all CUs are good. All of the ones in my area are pretty lousy (at least the ones I qualify for). There were good ones in my previous locations, but since I relocated those no longer worked and I closed the accounts.

Quest80
Posts: 35
Joined: Mon Jan 20, 2014 11:22 pm

Re: PSA: Bank of America now charges $12/month for checking

Post by Quest80 » Sun Jun 10, 2018 7:14 am

student wrote:
Wed Feb 14, 2018 10:54 pm
Quest80 wrote:
Wed Feb 14, 2018 9:35 pm
student wrote:
Wed Feb 14, 2018 9:20 pm
Quest80 wrote:
Wed Feb 14, 2018 9:07 pm
I moved an IRA to Merrill Edge a few years ago and got a $600 bonus. It’s all in VG ETFs. My balance there gets me Platinum Honors status at BOA and free everything, including foreign ATM fee reimbursement. It’s been a good deal for me. I like their online banking too.
By "foreign," you meant non-BoA and not non-US, right?
Correct. Don’t think they cover non-US.
Thank you for your verification.
UPDATE re: the "foreign" question: We were just in England. Used a Barclays ATM and there was no ATM levied by either Barclays or BOA - they have an agreement apparently. However, BOA did levy a transaction fee for the withdrawal - I think it was 3%. I thought about calling them when I got home but decided not to bother.

denovo
Posts: 4384
Joined: Sun Oct 13, 2013 1:04 pm

Re: PSA: Bank of America now charges $12/month for checking

Post by denovo » Sun Jun 10, 2018 9:27 am

Quest80 wrote:
Sun Jun 10, 2018 7:14 am
student wrote:
Wed Feb 14, 2018 10:54 pm
Quest80 wrote:
Wed Feb 14, 2018 9:35 pm
student wrote:
Wed Feb 14, 2018 9:20 pm
Quest80 wrote:
Wed Feb 14, 2018 9:07 pm
I moved an IRA to Merrill Edge a few years ago and got a $600 bonus. It’s all in VG ETFs. My balance there gets me Platinum Honors status at BOA and free everything, including foreign ATM fee reimbursement. It’s been a good deal for me. I like their online banking too.
By "foreign," you meant non-BoA and not non-US, right?
Correct. Don’t think they cover non-US.

Thank you for your verification.
UPDATE re: the "foreign" question: We were just in England. Used a Barclays ATM and there was no ATM levied by either Barclays or BOA - they have an agreement apparently. However, BOA did levy a transaction fee for the withdrawal - I think it was 3%. I thought about calling them when I got home but decided not to bother.
3 percent fee is for foreign currency exchange. Most credit cards have it too. A few cc's have 0 percent exchange rate and that's my go to overseas.
"Don't trust everything you read on the Internet"- Abraham Lincoln

criticalmass
Posts: 712
Joined: Wed Feb 12, 2014 10:58 pm

Re: PSA: Bank of America now charges $12/month for checking

Post by criticalmass » Tue Jun 12, 2018 10:45 pm

denovo wrote:
Sun Jun 10, 2018 9:27 am
Quest80 wrote:
Sun Jun 10, 2018 7:14 am
student wrote:
Wed Feb 14, 2018 10:54 pm
Quest80 wrote:
Wed Feb 14, 2018 9:35 pm
student wrote:
Wed Feb 14, 2018 9:20 pm


By "foreign," you meant non-BoA and not non-US, right?
Correct. Don’t think they cover non-US.

Thank you for your verification.
UPDATE re: the "foreign" question: We were just in England. Used a Barclays ATM and there was no ATM levied by either Barclays or BOA - they have an agreement apparently. However, BOA did levy a transaction fee for the withdrawal - I think it was 3%. I thought about calling them when I got home but decided not to bother.
3 percent fee is for foreign currency exchange. Most credit cards have it too. A few cc's have 0 percent exchange rate and that's my go to overseas.
I'm surprised anyone paying attention chooses to pay a 3% surcharge on purchases or cash. Most issuers replaced the foreign currency charge with a Foreign Transaction Fee so they can hit customers getting ripped off with dynamic currency conversion too. Getting US dollars anywhere offshore or buying tickets from a foreign airline? FTF applies.

Tons of credit card don't have a Foreign Transaction Fee, including the BoA travel card and the entire Capitol One portfolio. For cash, Fidelity and Schwab atm cards don't charge a FTF and then reimburse any surcharges, worldwide.

Quest80
Posts: 35
Joined: Mon Jan 20, 2014 11:22 pm

Re: PSA: Bank of America now charges $12/month for checking

Post by Quest80 » Sun Jun 17, 2018 12:40 am

I used my BOA Travel Rewards card which has no foreign transaction fee charged. It was the use of my ATM/debit card to get cash in England that triggered the fee.

Trism
Posts: 254
Joined: Mon Jul 18, 2016 6:34 pm

Re: PSA: Bank of America now charges $12/month for checking

Post by Trism » Sat Jun 23, 2018 4:16 pm

You can get the monthly fee waived with just one $250 direct deposit per month or $1,500 minimum daily deposit.

If you can't (or won't) cut that, you aren't going to be a profitable customer. They're charging you $12/month to make you go away.

We keep > $100k in Vanguard ETFs at Merrill Lynch, which qualifies us for the Platinum Honors tier in the B of A Preferred Rewards program. Among other things, this gets us:

- Monthly fee waivers on up to four checking accounts, regardless of balance or direct deposit activity (we have one);

- 100 free brokerage trades per month on our Merrill Lynch accounts (although we only use a few each month);

- Unlimited reimbursements for ATM fees from other banks, and no ATM fees from Bank of America;

- 75% rewards bonus on our Travel Rewards credit card (which gets us 2.625% back on all spending) and our Cash Rewards card (which means 5.25% back on gas, 3.5% back at grocery stores and warehouse clubs [first $2,000/quarter on category spending], and 1.75% back on everything else);

- Free safe deposit box (we don't have one, but this thread is atwitter with people who like this perk);

- Access to the Preferred Credit team, who got us to $80,000 in revolving credit on our cards almost immediately after becoming customers... these people look for ways to say yes);

- 0.5% discount on auto loans (which brought their rate right in line with credit union options when we got ours a couple of years ago);

- Free cashiers checks;

- Knowledgeable, empowered Priorty Client Service agents (I once had one call me back 20 minutes after I'd spoken to him because he realized I hadn't asked a couple of important questions related to the reason for my call);

- Free incoming wires;

- $50,000 monthly remote deposit limit;

- Waived shipping fees for foreign currency (this is a new benefit which I recently used when I needed some yen for a trip to Japan).

Take this list to your credit union and ask them how they stack up.

Would I keep liquid savings there at 0.00000000001%? Of course not. Best option for a mortgage? Nooooooo. But for our household I haven't found a more rewarding banking relationship.

We've been customers since we got married in 2013 and have paid a total of $40-50 in total account-related fees for two outgoing wires. We've also withdrawn and deposited nominal amounts of foreign currency on a handful of occasions and paid the going rate for those transactions.

bigdav160
Posts: 74
Joined: Sun Apr 30, 2017 3:44 pm

Re: PSA: Bank of America now charges $12/month for checking

Post by bigdav160 » Sun Jun 24, 2018 8:08 am

Maverick3320 wrote:
Thu Feb 15, 2018 8:10 am
What's the upside of using BoA over your local credit union?

(legit question)
I was a member of a credit union until the teller lied to me. When I challenged the associated fees with the branch manager about the teller's mistake, the manager took the word of the teller and refused to refund. ($25 on a $6 check). When I mentioned pulling my money out over this she challenged me.

Of course I didn't do business with them again.

Banks/credit unions are only as good as the people that run them.

nura
Posts: 124
Joined: Mon Jun 27, 2016 11:24 am

Re: PSA: Bank of America now charges $12/month for checking

Post by nura » Sun Jun 24, 2018 8:32 am

Pajamas wrote:
Wed Feb 14, 2018 1:23 pm
As a BoA shareholder, I am glad to see that they are instituting fees to cover the cost of providing services to you.
I started BoA account out of school, had it without monthly fee for over 10 years. When they him me with first $12, we cancelled out all BoA accounts. Between members of family, we had over $50,000 dollars in Savings and checking accounts.
We were welcomed to Discover and Chase banks where we received $300 in Sign-in bonus.
BoA will never receive dime of business from us, ever.

student
Posts: 2665
Joined: Fri Apr 03, 2015 6:58 am

Re: PSA: Bank of America now charges $12/month for checking

Post by student » Sun Jun 24, 2018 8:38 am

nura wrote:
Sun Jun 24, 2018 8:32 am
Pajamas wrote:
Wed Feb 14, 2018 1:23 pm
As a BoA shareholder, I am glad to see that they are instituting fees to cover the cost of providing services to you.
I started BoA account out of school, had it without monthly fee for over 10 years. When they him me with first $12, we cancelled out all BoA accounts. Between members of family, we had over $50,000 dollars in Savings and checking accounts.
We were welcomed to Discover and Chase banks where we received $300 in Sign-in bonus.
BoA will never receive dime of business from us, ever.
I can see your reasons for leaving BoA and your reasons for going to Discover. However, Chase is no different from BoA, it has the same type of fees. For example, https://www.chase.com/personal/checking/total-checking has $12 monthly fee unless one satisfies certain criteria, similar to BoA. Bank of America also has sign up bonus every now and then such as http://www.hustlermoneyblog.com/bank-of ... ing-bonus/

arf30
Posts: 316
Joined: Sat Dec 28, 2013 11:55 am

Re: PSA: Bank of America now charges $12/month for checking

Post by arf30 » Sun Jun 24, 2018 8:53 am

The main problem with BoA is they're constantly fiddling with their fee and reward structure. The lack of consistency makes them hard to trust.

nura
Posts: 124
Joined: Mon Jun 27, 2016 11:24 am

Re: PSA: Bank of America now charges $12/month for checking

Post by nura » Sun Jun 24, 2018 8:57 am

student wrote:
Sun Jun 24, 2018 8:38 am
Bank of America also has sign up bonus every now and then such as http://www.hustlermoneyblog.com/bank-of ... ing-bonus/
I offered BoA to start a direct deposit if they forgave the $12 they already charged, they declined.
I promptly took my money elsewhere.

Few weeks later, BoA mailed me sign-up bonus offer, I had a good laugh. '
They were offering $150 to win back a customer they had lost over $12 few weeks ago.
An example of boneheaded business practise.

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