Thursday, September 29, 2011

Bank of America to charge $5 monthly fee for debit card purchases

Most Bank of America customers will soon see a new charge on their statements -- $5 for any month in which they use a BofA debit card to make a purchase.

Consumers should prepare for more such charges, analysts say, as big banks strive to recover revenue they have lost to financial reforms adopted in the aftermatch of the economic meltdown.

The new Bank of America fee will be phased in early next year, said Anne Pace, a spokeswoman for BofA, the nation's largest retail bank.

Customers will still be able to use their cards at the bank's automated teller machines without being charged, the bank said Thursday.

They also can make debit purchases free if they have a mortgage from Bank of America or if they have a total of $20,000 on deposit at Bank of America and in certain Merrill Lynch accounts (you may recall that Bank of America's corporate parent bought Merrill Lynch as the financial crisis set in).
Read the rest here.

Yet again I am compelled to say it... BANKS ARE THE ENEMY!


Anonymous said...


What a blatantly stupid remark!!! There is way too much to unpack here so I'll only drop a few points. First, without the banking system we'd probably still be rolling stones around in the dirt. Second, you need to seriously educate yourself about the devistating effects government regulation has on the operations of a bank. The same bozo's who can't balance manage to cut 2 cents out of the federal budget but absolutely have to raise my taxes are also essentially in charge of running the banks.

John (Ad Orientem) said...

I am not opposed to a banking system. I AM opposed to a predatory banking system which we have. There is a difference between unnecessary and cumbersome regulation which surely exists and that designed to protect consumers. Maybe you are a fan of economic anarchism/Darwinism. I am not.

Visibilium said...

Which regulation protects consumers and which regulation creates barriers to entry?

M. Jordan Lichens said...

This is a ridiculous fee. Might I suggest changing banks if you're frustrated. Or sign up with a credit union.

Chris Jones said...

I do think you are over-reacting, John. I don't think the $5.00 fee is going to fly in the long term; but even if it does, it is simple enough to bank with another bank that does not charge the fee.

We have our checking account with a small New England savings bank. Since we have an IRA account with a few thousand dollars in it at the same bank, our checking account is free and the bank reimburses for any ATM network fees. We have all the services that a big bank like B of A provides, with the bonus that we are supporting a local business and banking with people who are our neigbours and treat us that way.

I am sure that you have community banks like that in the San Joaquin valley, too.

Not that I have anything against Bank of America. I used to work for B of A for a few years back in the 90s, and they were good to me. Come to think of it, they tried this fee of a few dollars in any month that you use your debit card back when I was with them. After a while they realized they were losing customers because of it and the fee was quietly dropped. I fully expect that bit of history to repeat itself this time, too.