Monthly Fees for Debit Card Usage

If you use a debit card, pay attention! Early next year, Bank of America plans to join other banks in charging their customers a monthly fee for debit card use.

At Bank of America, the new $5 fee will be added to all basic accounts on top of any existing monthly service fees. Card users will not be charged the fee if their only debit card use is at an ATM.

Some other banks around the country are testing out this fee as well. These banks include Regions Financial, SunTrust, Chase and Wells Fargo in select markets with fees ranging from $3-$5.

This summer, an Associated Press-Gfk poll discovered that 2/3 of customers use debits cards over credit cards. With this overwhelming prevalence of debit cards, these fees are tough to avoid unless you refer back to using cash, personal checks, and credit cards for purchases.

How can you find out if you will be charged these fees? Keep your antenna up and look for any emails, letters, or statement inserts for anything relating to your financial institution and its rates. Just because your bank hasn’t raised their fees, it doesn’t mean they won’t in the future. So pay attention, you don’t want to be hit with these charges without being aware of them first!

For more information, please click here for the entire article from USA Today. How do you feel about these fees? Please comment below!

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16 Comments Add yours

  1. Jessica B. says:

    I don’t think it is fair for banks to take out money from our own debit cards. I understand where they are coming from, but we are intrusting the banks to keep our money in a safe place and to withdraw and use where we would like, since it is our money, so they should not charge us…but it is a business, but fair..no.

  2. Ingrid Medina says:

    The bank fees are getting outrageous. Why should I have to pay to use my own money. I currently use Neighbors FCU and they refund any fees that I am charged from any other bank’s ATM. I understand that banking is a business and so of the things they charge us for is ok. These fees have gone too far.

  3. Hannah says:

    While I’m annoyed by this new charge, I use a credit union that will not be enacting a debit card fee the way many banks are. If enough bank users decide to switch to institutions not charging this fee, banks may revert to not having one.

  4. Capri says:

    This is an abomination. Personally, if my bank decides to do this, I will close my account and find a bank that won’t steal my money. Because in my opinion, charging that fee is theft. It’s just another way for banks to make money off of their consumers. I would rather invest in a safe and keep my money at home than have my bank take my money for making a purchase. I hope that people will educate themselves and take their business elsewhere if their bank adopts this service fee.

  5. Ashley says:

    I rarely carry cash. Debit cards and credit cards have become a major part of my everyday life. This trend is increasing among Americans. Bank of America is a large bank and charging for a service that was previously free may not rest well with its customers. Bank Transfer Day on November 5 may inspire those unhappy customers to change from Bank of America to a credit union that will not charge as many fees.

  6. Taylor Kornegay says:

    Although this seems ridiculous to me, I am not surprised. Debit cards do not get the returns like credit cards. For students like me, I do not even have to be annual fees, so they are not making any money off of my account. These small fees for using a debit card will rake in the money that they are wanting, and they are small enough that people are not going to become infuriated. I do not think it is fair especially for those who already have an assortment of fees, but it isn’t going to stop people from using there cards. I think that this creates a win win in this situation.

  7. Kenneth Macaluso says:

    Personally I think the banks just want to charge these extra debit card fees because it is an easy way for them to make money, because so many people have these cards. I think it is wrong that they would abuse the new trend of using debit cards instead of checkbooks. Technology has moved on, and the fact that debit card usage is widespread and constantly promoted by stores, banks, etc. should be the sole reason that banks would not charge people extra fees for using them. I have been a victim to crazy fees from my bank due to using my ATM card certain ways and sometimes it is really frustrating when the fee is $20-$40 for an item you purchased that was $5.00.

  8. Rdiful1 says:

    The fact that banks are going to charge us to use our own money is rather ridiculous. This will just make me move to using a no fee credit card for all of my purchases and pay it off at the end of the month. In the long run this will only hurt the banks.

  9. Grant says:

    I am very surprised that banks are going to start charging fees for the usage of ATM cards. Most debit card users already get charged fees for using public ATM machines. I agree that many people may switch over from public banking to credit unions. I thinks banks will lose lots of business if they start putting fees on all of their accounts.

  10. drew says:

    I am a Chase banker and they do not charge these fees. It is going to be a tough road for Bank of America. Five dollars adds us very quick and many customers will stop using their bank. I think there are other ways for a bank to make money like better promotions and advertisement. From looking at this in a short term view I do not see the positives out weighing the negatives. Loosing all of those customers will cost you more than you will make by charging the 5 dollars. Maybe this will be a trend and Bank of America is ahead of the game and is willing to take the plunge first. But short term I do not see this thing going well.

  11. Clint says:

    The idea of banks implementing fees on debit cards is a controversial thing. On the side of the consumer, it is an inconvenient way for banks to profit off of their clients. While on the other hand, it’s necessary in any business to may money. Personally, I wouldn’t mind paying a fee if I know that it’s beneficial to the betterment of the company. However, if my debit card fees will be going straight into “the big guys’ pockets”, then I want no part of it.

  12. Aaron says:

    I enjoy the convenience of using my debit card and although I am not overjoyed about this happening, it does not bother me that much. If you really think about it, this is only $60 a year for the convenience having access to all of your money at the swipe of the card. The world is moving more and more to plastic rather than cash so this decision by the banks to be paid for a service that they offer to us for keeping our money in a safe location seems justified. I will happily pay for the security that a bank can provide to my hard earned money rather than leaving it at risk in my home.

    1. Money Tools For Life says:

      This is completely true. Banks are keeping your money safe and sometimes the fee is worth it to customers!

  13. Jessica says:

    It does not surprise me that banks are considering doing this. Since the decline of the economy, many people have switched from credit cards to debit cards and banks are unable to charge as many fees on debit cards. Banks are looking for any way they can to make more money so that they can avoid bankruptcy. However, this is very unreasonable to customers because we will be having to pay to use your own money. Many people are going to withdraw their money from these checking accounts and either deposit it in a credit union or in a safe at home. The banks should consider this before they implement this fee because they may end up losing customers and end up decreasing their revenue, rather than increasing it. As a customer of Bank of America, if they implement this fee it is highly likely that I will close my account with them. I use my debit card for just about every purchase because it is safer than carrying around cash. However, if it is free to use cash and $5 to use my debit card, I will choose the free option.

  14. Paige says:

    To me this new phenomenon is absolutely outrageous. I can understand charging a fee for credit card usage because the bank is ‘lending’ us money but we do not earn or benefit from holding a debit card. I may as well liquidate my account and keep all my money under my mattress. What is really unfortunate is a number of people who are P/T employees are required to have direct deposit and for many this means a debit account. As a result of this they are going to be charged for holding on to earnings. I assume many debit card holders will pull their money from these institutions are transfer to credit unions, this will probably benefit them in the long run regardless of fees.

  15. Quantae says:

    It’s unbelievable that banks are really going to start charging us a fee to use our own cards. I think this will result in a lot of people switching to credit unions. I know campus federal will repay you for all the fees that you acquire for using other ATM’s since they don’t have many and I haven’t herd their name being mentioned in any of the talk about banks and fees. I also think this has a lot to do with occupy Wall Street movement. We saved these banks so they wouldn’t go bankrupt after they made unethical decisions. It’s because of us that they are still here and now that they are doing well again and beginning to pay off their loans or have paid them back, they want to charge us. It’s shocking. I don’t understand why they must make so much money. They will still make millions and some even billions if they don’t charge this fee. Maybe they should consider this because if they implement these fees many people will not continue to use their services.

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