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
