SYRACUSE -- If you've checked your bank statements lately, you may have noticed new checking account fees. For many banks, free checking accounts are a thing of the past, and to bank for free, you'll have to be a savvy consumer.
Gary Thurber, the Assistant Director of Community Relations at Consumer Credit Counseling of Central New York, says new banking regulations are driving big banks to look at new ways to bring in money. For example, soon banks will not be able to charge fees for overdraft protection. He says, when those rules go into effect, if a consumer tries to use a debit card on something he or she can't afford, it will be automatically declined.
Thurber says the best way to protect yourself is to be aware of any changes. That means always check any mail or email you receive from your bank. If a new fee is added, he says see if there is anything you can do to avoid paying it.
"People will have to take personal responsibility," says Thurber. "Before, they kind of buried their heads in the sand, and the big bank or big credit union would take care of them, but now, the onus is going to be on them to stay informed."
Bank of America puts a link on its website, telling customers how to avoid fees. T.J. Crawford at Bank of America says there are several things consumers can do to avoid fees, including signing up for a new type of checking account just introduced Monday. Customers who sign up for eBanking will make deposits and withdrawals online and receive paperless statements. If they do that, there is no monthly maintenance fee regardless of account balance or the number of transactions.
At HSBC, the basic checking account requires a $3 maintenance fee. The banks' Choice Checking, Plus Checking, or Premier Checking accounts waive monthly maintenance fees if the customer keeps a minimum balance or meets other terms and conditions. Spokesman Neil Brazil says the majority of customers (92% in June) avoid paying maintenance fees.
Other banks will waive fees if the customer uses services more often. Chase banks offer a basic checking account with no monthly fee if the customer uses direct deposit or makes at least five debit card transactions per month.
Many banks still offer free checking accounts to students, and not every bank is depending on monthly maintenance fees. A representative from Solvay Bank says the bank offers six types of checking accounts. None of them have a monthly maintenance fee, and the bank says it's seeing more business because of that .
For more information, visit Consumer Credit Counseling, Bank of America ebanking, HSBC checking accounts, Chase checking accounts and Solvay Bank.
