The news that Wal-Mart's going to cease cutting paper checks for employees who
don't have direct deposit has prompted all sorts of reactions -- applause
for reducing paper waste, debates over whether ATM fees are more or less
ruinous than check-cashing fees and confusion over why people just don't have
bank accounts into which to deposit their checks. The short answer: Because
free bank accounts usually come with strings attached. In poking around bank
options in the Bay Area, here are the terms for "free" checking from
the big ones:
Bank of America
-- The MyAccess checking account waives its $8.95 monthly fee if you
either have a "qualifying" direct deposit made to your account once a
month, or you maintain an average daily balance of $1500 in the checking
account. Otherwise, it'll cost you $107.40 per year for the privilege of
keeping your money here. However, if you take advantage of the online-only Charitable Causes accounts, you can open a free
checking account with no minimum balance, no direct deposit and no fees.
Bank of the West -- Its free checking program doesn't list a minimum average
daily balance -- all you apparently need is $100 to open the account.
Citibank -- Its EZ Checking account requires $100 to open, and in order
to waive the $9.50/month fee, users have to do one of three things: make two
monthly bill payments online; maintain an average minimum balance of $1500
across any linked checking and saving accounts; use direct deposit for the account.
Chase Bank -- While the website claims there are currently
no products available in California until they
finish the Washington Mutual takeover, when I popped in a Washington State
zip code and took a quick visit to their Chase Checking page, here were the terms I found. For free
checking, you'd need $25 to open an account. To avoid the $6/month fee, you've
got to make five different debit card purchases or have direct deposit; there's
no stated minimum average monthly balance.
First
Republic
-- According to their site, this bank offers an
"ATM Rebate Checking" account, and that appears to be it. This
interest-bearing checking account charges $15 per month in fees ($180 per year)
unless you maintain a minimum average monthly balance of $2500. You need $500
minimum to open the account. I downloaded and read through their account
disclosure statement and it appears that the big perk to this account is that First Republic
won't charge you fees for using non-network ATMs. That doesn't mean other banks
won't tack on their own fees, though.
US
Bank -- Its free checking requires $50 to open the account, but
there's no required minimum average daily balance.
Wells Fargo
-- The
bank's most basic checking account requires a $100 opening deposit, and
it'll waive the $5/month fee if you maintain a $1000 minimum daily balance or
you've got direct deposit.
And then there's the issue of bank fees: Bank of America's upped its overdraft fees, as have Citibank and
Wells Fargo, and according to Bankrate.com, banks have boosted their ATM
fees.
Here's how the main banks around here shake out for fees:
Bank of America
-- Overdraft fees will run you $35 per transaction (with a limit of 10
overdraft items per day, or $350), and ATM fees will run you $2 per each
non-BofA transaction.
Bank of the West -- Use your Bank of the West card at a
non-bank ATM and they'll charge you $1.50 per use. Overdraft fees are $26 per
day for the first insufficient-funds transaction and $35 per each item after
that.
Citibank -- For overdraft protection: "Citibank will
charge an Overdraft Protection Transfer Fee of $10 each day we cover an
overdraft by transferring money," and that's on top of its $34 overdraft
fee per item. Citibank's pretty cagey about whether they'll charge customers
fees for using non-Citi ATMs, choosing to focus instead on the possibility that they might reimburse you the fees other
banks charge for using their machines.
Chase Bank -- ATM fees are $2 per transaction from Chase if
you use any non-Chase ATM. According to the site, you have to choose to sign up
for overdraft protection; their
overdraft fees are tiered -- $25 for the first occurrence, and more from
there. (Also, good luck trying to read through the disclosures -- all the download links are broken.)
First
Republic
-- There is no overdraft fee listed, only a $30 fee for
"insufficient funds."
US Bank -- US Bank will charge you $2 for using your ATM
card at non-US Bank location. Their overdraft fees are tiered: $19.00 for the first
overdraft, $35.00 for two to four, and $37.50 after that; the continuous
overdraft fee (charged each day the available balance is below zero beginning,
as of the fourth calendar day you're overdrawn) is $8 per day. According to the website, overdraft protection is an opt-in
program with an unstated monthly fee.
Wells Fargo
-- According to the fee schedule, Wells Fargo will charge you $2.50 if you
withdraw money at a non-Wells Fargo ATM. Their overdraft fee is $25 for the
first overdrawn occasion in a 12-month period, then $35 per each occasion after
that. Wells Fargo defines an occasion as "a day in which your account does
not have enough money to cover the transaction," so if you've got one
overdrawn check but your account doesn't have sufficient funds for three days,
you're out $90 in overdraft fees alone.
ATMs, choosing to focus instead on the
possibility that they might reimburse you the fees other banks charge for using
their machines.
Chase Bank -- ATM fees are $2 per transaction from Chase if
you use any non-Chase ATM. According to the site, you have to choose to sign up
for overdraft protection;
their
overdraft fees are tiered -- $25 for the first occurrence, and more from
there. (Also, good luck trying to read through the
disclosures -- all the download links are broken.)
First
Republic -- There is no
overdraft fee listed, only a $30 fee for "insufficient funds."
US Bank -- US Bank will charge you $2 for using your ATM
card at non-US Bank location. Their
overdraft fees are tiered: $19.00 for the first overdraft, $35.00 for two
to four, and $37.50 after that; the continuous overdraft fee (charged each day
the available balance is below zero beginning, as of the fourth calendar day
you're overdrawn) is $8 per day. According
to the website, overdraft protection is an opt-in program with an unstated
monthly fee.
Wells Fargo
-- According to the fee
schedule, Wells Fargo will charge you $2.50 if you withdraw money at a
non-Wells Fargo ATM. Their overdraft fee is $25 for the first overdrawn
occasion in a 12-month period, then $35 per each occasion after that. Wells
Fargo defines an occasion as "a day in which your account does not have
enough money to cover the transaction," so if you've got one overdrawn
check but your account doesn't have sufficient funds for three days, you're out
$90 in overdraft fees alone. SOURCE:SFGATE.COM
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