Battling Bank Fees

Tuesday, September 27, 2011 - 9:05am

Banks are adding more fees to checking and savings accounts.

We're used to putting more and more money in our savings account, but oddly enough today, the banks don't really want that money. 

That's showing through the addition of bank fees.

An e-mail from Wells Fargo came as a shock to children's author Bobbi Hill.

"It told me this wonderful little surprise -- that my free checking account -- gone! Vanished! It's just not going to be there anymore," she says.

Instead Bobbi will have to pay up if she wants to keep her account.

The bank she's used for more than 25 years was changing the rules.

"I'm going to have to pay $120 dollars a year to let the bank park my money in their accounts," Hill says.

"They're trying to make more money off of fees, so interestingly, they're making money off those people who kind of live paycheck to paycheck," notes San Diego State University accounting professor Martha Doran.

Doran says people are saving more these days, but that's not necessarily good news for the banks.

"They aren't in the business really to hold on to money, and that's what's happened to them," she says. "They're holding these pools and amounts of money because they don't yet know where to invest it that they feel they'll make more money."

Until that changes, expect banks to look for other ways to collect money from their customers, and expect customers like Bobbi Hill to take their business somewhere else.

"I went ahead and posted it on Facebook and Tweeted it and got a big response from people who were going to do the same thing that I'm going to do, which is close my accounts," she says.
seems a cup of joe might leave you feeling good well beyond the last drop.

Comments News Comments

Post new Comment