I saw a news clip today about a Bankrate survey on banking fees. It appears that the big banks are in a fee feeding frenzy because of recently passed legislation that makes it more difficult for them to generate a profit.

Free checking may become a thing of the past

Those free checking accounts that were so prolific just a few years ago? Many are now gone. Just three years ago 75% of all banks offered free checking accounts. Today that number is closer to 45% for the big banks … and it’s still going down. Those that do offer free checking accounts make multiple demands on how you use or access your money: minimum balances, direct deposits, and debit card use.

Even with accounts that offer free checking, big banks are still fee happy. Those that aren’t charging a regular monthly fee are hitting us up with massive NSF charges, balance minimums as high as $5,000, out of network ^[2] ATM fees of up to $5, and all while paying dismal interest rates on your savings account ^[3] or your “interest checking” account.

What can you do? Switch banks.

The problem? You won’t do it … at least that’s what the survey showed. People claim that high bank fees would irritate them enough to switch banks but few ever do. When you threaten to close your account and switch, banks know you’re bluffing. Switching banks can be a pain in the neck unless you do it right. That’s why I wrote How To Switch Banks in Six Easy Steps ^[4]. It really is easy and you can do it!

Which bank should you switch to?

My three favorites:

PerkStreet

PerkStreet ^[5] has debit card rewards for its customers. While the big banks are charging you, PerkStreet ^[5] is rewarding you. They have no fee checking, very low fees all around, and tens of thousands of ATMs. PerkStreet ^[5] doesn’t yet offer a savings account ^[3], but it’s on the horizon.

ING Direct

ING is KNOWN for having a no fee approach and that’s why they’ve grown so much. Get this: even their NSF fees are ridiculously low. Overdraw your account by $100 for 10 days and you’ll pay a fee of just 31 cents … vs $30 at the big banks. ING also offers a fantastic savings account ^[3] that pays interest rates higher than most.

Ally Bank

Ally also has both savings and checking accounts and works to improve the overall customer experience with their reduced fee model and plain, common sense policies.

The BIG question:

Will you get fed up enough to actually begin the switch? If you don’t want the hassle, just open a PerkStreet ^[5] checking account ^[5] and make the switch slowly over the next 5 months.

About the author

Ron has written 1083 articles on The Wisdom Journal.

The founder and editor of The Wisdom Journal ^[6] in 2007, Ron has worked in banking, distribution, retail, and upper management for companies ranging in size from small startups to multi-billion dollar corporations. He graduated Suma Cum Laude from a top MBA program and currently is a partner in a national building materials company.

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