Coming Soon, FEES!!!!!
What Happened To Banking?
So I was flipping through a document I got from Wells Fargo this week. It appears that starting July 1, 2010 they will be introducing some new banking fees. This of course will be waived if you have more than $1000 parked in your account. That by the way would be one of the dumbest financial moves out there, considering it would yield about .0001% in interest. You might also have automatic transfers set up, in which case they will also waive the fee, however again you are getting about .003% in interest. The last item that will nullify the charge is if you are lucky enough to have direct deposit, which I don’t.
For everyone else, it will cost $10 per month minimum to have the privilege of banking with Wells Fargo. Where is Suze Orman now, toting her message of, “Keep your money in the bank” in those goofy FDIC commercials? The truth is there will be a massive shake out coming. Big banks are going to have to downsize and go back to the “classic” style of banking. You know, when they used to borrow money and loan it out (amazing concept huh?). What ever happened to those days?
Quoting Wells Fargo
Effective with your July 1, 2010, or later statement, the monthly service fee for your Custom Management Checking account will be $10 per month. You may continue to waive the monthly service fee if your package is complete and has one of the following:
A $1,000 minimum daily balance;
A qualifying Direct Deposit of $100 or more;
A recurring monthly automatic transfer of $25 or more per transfer from this account to your Wells Fargo savings account.
Closing Your Account
There is no talking your way out of this one kids. When those fees hit, it will be game over. You heard it here first. Run while you still can because with these new laws, banks are going to make their pillaging of your funds much more transparent. Their looting through overdraft fees and ATM charges are distant and painful memories. The easy money was made and the economic realities of today have finally caught up with them. In the coming fee hikes, you will see individuals go with smaller, more sane, financial institutions like credit unions and community banks.
When you close your account, you will undoubtedly be asked why. Feel free to let loose your frustration and tell them you are going with the small guys. You will be given a voucher for the remaining cash in your account. You can bring this to a teller window and turn it into currency. Do not call or email the bank to close your account. This will unleash a nightmare of miss communication and could lead to even more fees.
Clean Up Your Mess
I know that closing an account can be a nightmare. You are going to have to make sure that your bill payments aren’t drawn from your closed accounts. Don’t forget your E-Bay and Amazon accounts and switch them over to your new bank account/credit card. It wouldn’t hurt to inform the local IRS to have your property tax refunds rerouted to you, in form of a check, instead of a deposit to an account you no longer have.
