Scare tactic? .... Chase contemplating checking acct fees?

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swong
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Scare tactic? .... Chase contemplating checking acct fees?

Post by swong »

We've been with Chase since the early 70's and while they have always been terrible with their interest rates all in all they have pretty well served all our needs. This past week however Chase once again is in the news voicing their goal of charging fees for any of their checking services. Before any responders voice their opinions let me state the fact I have a need to stay with Chase and believe their goal was to cull those accounts with small balances and keep high net-worth accounts. This makes sense since we feel more secure with a bank which is "too big to fail" ... a classification by the government given to only 3 banks here in the US. Reasons why we stay with Chase include this fact along with multiple retail locations here in the city, no restrictions on extremely large sume transfers, and top notch support sot those times when we require this type servie. I suspect Chase will eventually require a large monthly balance just to avoid these fees. Thoughts anyone?
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SmileyFace
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Re: Scare tactic? .... Chase contemplating checking acct fees?

Post by SmileyFace »

So you "need to stay with them" but fear they might charge some fees that probably won't apply to you?
I don't know what type of advise or feedback you are looking for.
jebmke
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Re: Scare tactic? .... Chase contemplating checking acct fees?

Post by jebmke »

I wouldn’t worry about it until you have facts. Waste of time. I don’t scare easily.
When you discover that you are riding a dead horse, the best strategy is to dismount.
z3r0c00l
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Re: Scare tactic? .... Chase contemplating checking acct fees?

Post by z3r0c00l »

Generally those of us who have lots of accounts with them or a larger balance with direct deposits avoid fees, but no matter... if they do something I can move to another bank. A good excuse to get a bonus for doing so, in fact. Only use one check per month at this point and it could be done a different way. I appreciate why they might charge someone like me a fee, since I am fairly certain they lose money, or barely make money on my account after credit card cash back each year. They pay me $800 in a lean year, does my average balance of $2,000 plus 2-3% on credit card spending mean that much?
Last edited by z3r0c00l on Tue Jul 09, 2024 6:10 am, edited 2 times in total.
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8foot7
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Re: Scare tactic? .... Chase contemplating checking acct fees?

Post by 8foot7 »

The piece was aimed at legislators who are considering a bunch of new restrictions on fees charged to consumers. A warning shot, if you will.

It really doesn’t matter. They won’t be able to charge millions of people more than the market will bear for a checking account. If other banks in your local market area offer free checking, they will have to do so as well to compete effectively. If other banks don’t, they won’t. The piece makes clear that it will be more difficult for smaller banks to increase checking fees when they already have a more limited footprint of branches and service so they may be forced to eat the increased costs of regulation; but the presence of their “forced” free checking in markets may keep checking free at the large banks.
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Stoic
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Re: Scare tactic? .... Chase contemplating checking acct fees?

Post by Stoic »

If you've going to complain about Chase might as well complain about all the Big Banks. They all charge fees unless you jump through some hoops (ie. carry a large balance eg 100k, have large direct deposit etc)

Go to a local credit union if you want free checking. :beer

/thread
NYCaviator
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Re: Scare tactic? .... Chase contemplating checking acct fees?

Post by NYCaviator »

I'd wait and see. Chase isn't a bad bank and if it's meeting your needs, why switch now? If you have a larger balance you probably aren't going to be affected.

I think this is probably Chase's reaction to the recent news about capping fees, but it's also because big banks don't profit much from people who keep small balances and don't use their other services. Big banks like Citi and HSBC have done the same thing. They raise the amount of money you need for free checking to try and get rid of customers who aren't profitable.

Ultimately, it's a headache for banks to deal with people who keep small balances and constantly overdraft. Someone is also a lot more likely to overdraft their account if the fee to do so is $3 vs. $35 so banks like Chase are probably just trying to impose fees to encourage these unprofitable customers to bank elsewhere.
vtftw100
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Re: Scare tactic? .... Chase contemplating checking acct fees?

Post by vtftw100 »

I believe you’re referring to the WSJ article by head of Chase’s banking division. I wouldn’t personally worry about it as much since they still need to be competitive in the market like others have said, given the status of checking accounts being tantamount to common carriers (ie not very hard to switch; more or less the same everywhere).

That said, I think the article itself is pretty absurd. It’s a private bank in a heavily regulated industry (for good reason). If the legislators have a spine, they should probably threaten to break up Chase for being too big to fail and engaging anti-consumer behavior. Generally, my feeling is that businesses need to be reminded who is in charge.
Young Boglehead
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Re: Scare tactic? .... Chase contemplating checking acct fees?

Post by Young Boglehead »

What's the APY you're getting at chase? Virtually nothing?
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Doom&Gloom
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Re: Scare tactic? .... Chase contemplating checking acct fees?

Post by Doom&Gloom »

The thing that would scare me is knowing that I had to stick with Chase.
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retired@50
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Re: Scare tactic? .... Chase contemplating checking acct fees?

Post by retired@50 »

Stoic wrote: Tue Jul 09, 2024 6:12 am
Go to a local credit union if you want free checking. :beer

/thread
The /thread notation should work, but it rarely seems to... :wink:

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Re: Scare tactic? .... Chase contemplating checking acct fees?

Post by LadyGeek »

This thread has run its course and is locked (not actionable). General comment threads are off topic in the forums with "Personal" in the title. See: A reminder that non-investing general comment threads are OT
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