43 responses

  1. krantcents
    September 29, 2011

    I do not use debit cards, but if I did this would push me to leave Bank of America.

    • moneycone
      October 3, 2011

      Good for you KC!

  2. DIY Investor
    September 29, 2011

    Hey man…it takes a lot of nickel and dimeing and bailout money to pay their fat cat bonuses!
    They made the decision years ago that they were going to be a commodity bank – screw the customer.

    • moneycone
      October 3, 2011

      Maybe this is all for the good. Will at least cause more customers to think about their relationship with BofA.

  3. Tempo
    September 29, 2011

    I can’t believe that anyone still banks with the mega-banks.

    BOA probably loose some customers but the majority of their customers will be too lazy or too confused to move. I know that once you have your direct deposit and bill payments all set up, it can be a pain to move. I sometimes think mega-banks are counting on that pain to retain customers. Like everything else, people need to vote with their feet and their wallets. And I hope a boatload of their customers vote.

    Oh well 5 bucks isn’t that much, “just accept it” like the Ally Bank commercial says.

    I like your article and the tips on switching. I hope a lot of people read it and ditch their mega-bank.

    • Cherleen @ The College Investor
      October 2, 2011

      $5 may not be much IF the amount comes from a single person’s pocket. Considering the number of account holders BofA has, they are definitely pocketing millions of $$$. Come to think of it, they are already earning when they use the money we bank on them. Now, they would like to earn when you use YOUR money. Got to move my money out of that bank.

      • moneycone
        October 3, 2011

        Tempo has a point. Even without the fee, BofA is a very bad place to park your money. But people don’t switch due to the fear of change.

    • moneycone
      October 3, 2011

      Thanks for the kind words Tempo.

  4. Dividend Mantra
    September 29, 2011

    While I believe that this will eventually become a normal part of banking one day in the future as banks try to make up for lost revenue…there couldn’t be a worse time for BofA to roll this out.

    I’m actually in disbelief over the timing of this, which is hard to say, because big banks have left me in a continuous state of disbelief over the last few years. This bank needs a serious shakeup.

    • moneycone
      October 3, 2011

      Makes you wonder how exactly are they planning on staying competitive.

  5. The Biz of Life
    September 30, 2011

    Another unintended consequence of Dodd-Frank. Expect more big banks to start levying various fees on their customers. Maybe it’s time to move money to a credit union or a small, local bank, or ally or other more customer friendly institution.

    • moneycone
      October 3, 2011

      Even the fees BofA charges are among the highest! WF and Chase are planning on a $3 fee…

  6. Jeffrey Trull
    September 30, 2011

    Seriously, why put up with this crap if you’re a Bank of America customer. There are many more banks (like the ones you listed in this post) that are much more interested in providing great service to their customers than BoA is. If you haven’t made the switch yet, now is the time.

    • moneycone
      October 3, 2011

      Precisely!

  7. Maggie@SquarePennies
    September 30, 2011

    Using a debit card is getting less attractive all the time. We stick with our credit union where we get free checking and no-fee debit cards (which we don’t use). It’s a real pain to switch from a bank, but BOA is likely to keep squeezing the little guy. It’s worth it to switch as you’ll probably need to do it sooner or later anyway. Might as well cut them off now.

    • moneycone
      October 3, 2011

      I wonder how many will actually switch.

  8. Buck Inspire
    September 30, 2011

    I don’t use a debit card, but this would make me switch. Guess big banks need to make up their money somewhere. I’m a Wells Fargo customer. They’re thinking of hitting customers with fees, too? Great tips on switching in case I need it, thanks!

    • moneycone
      October 3, 2011

      Wells Fargo is planning on beta testing this ‘service’ in select places!

  9. Darwin’s Money
    September 30, 2011

    I’ve never used a debit card, but to me, this stinks of a company trying to shed customers, kinda like Netflix spinning off its DVD biz, sending a ridiculous email to customers, increasing prices 60% overnight while adding new restrictions on accounts. Perhaps it’s not a very profitable part of their business?

    • moneycone
      October 3, 2011

      BofA is counting on the laziness of its customers!

      • Darwin’s Money
        October 7, 2011

        I read an interesting take on it recently – it’s not because they “can” but because they Must to shore up capital. Like their share price is actually reflective of some pretty big problems brewing…

  10. Dividend Monk
    October 1, 2011

    One more reason why I use a small credit union as my primary bank. Rather than sending profits to shareholders, they keep good customer service and avoid many fees.

    • moneycone
      October 3, 2011

      Simple truth, well said!

  11. World of Finance
    October 2, 2011

    This only adds to the reasons why I use credit cards. :)

    • moneycone
      October 3, 2011

      Makes sense doesn’t it?

  12. Molly
    October 2, 2011

    I don’t use a debit card either. It’s not convinient when they keep changing the rules.
    A few years ago after I paid off my Chase and B of A credit cards I went around to my local banks and did some research. I found a bank in my town that offers a credit card without being financed by the big borg banks money. The credit cards are funded by the banks money (AKA the depositors), Visa is used as an instrument. Yes, I was unable to get a huge credit line because of this but I really didn’t need one. The other perk was I was talking directly to the bank vice-president asking all of my questions.

    • moneycone
      October 3, 2011

      The good thing is even though all the big banks will eventually follow this practice, there are plenty of community banks and credit unions that don’t plan on a debit card fee.

      A customer wins as long as there are alternatives.

  13. Untemplater
    October 3, 2011

    Wow that sucks! No wonder everybody hates them. Luckily I don’t have a Bofa debit card and my bank doesn’t charge to use mine (yet). Man that’s a huge fee. -Sydney

    • moneycone
      October 3, 2011

      That is a huge fee! $60 a year for using your money? That’s more than the annual fee some credit cards charge!

  14. Miss T @ Prairie EcoThrifter
    October 3, 2011

    I have a debit card but I rarely use it. It is linked to account where I get so many free transactions. I don’t seem to ever go over that amount which is great.

    • moneycone
      October 3, 2011

      Not to mention using a debit card (PIN transactions) carries more risk than a credit card.

  15. Jeremy @ Personal Finance Whiz
    October 3, 2011

    I’m interested to see how this plays out. Everyone seems to be upset about the BoA fees, but I’ve taken the contrarian view point on my blog. I don’t have a problem with these fees at all.

    • moneycone
      October 3, 2011

      Hey someone’s gotta pay for those $5 billion bonuses for successfully getting the taxpayers to foot the bill for BofA’s bad deals!

  16. Roshawn @ Watson Inc
    October 3, 2011

    I am so annoyed by this legislation. In fact, it will be mentioned in my next post (small part though). I think it is a disservice to customers. However, I do agree with you. They are counting on a) people switching to the more profitable BOA credit cards and b) people being too busy to go through the annoyance of changing direct deposits and auto-drafts to another bank/credit union. YUCK

    • MoneyCone
      October 4, 2011

      It will be very interesting to see if smaller banks catch this debit fee bug!

  17. Everyday Tips
    October 3, 2011

    I rarely use debit cards, but I hate Bank of America and I cannot wait for my refi to finish and I don’t have to send another dime to that company.

    • moneycone
      October 4, 2011

      Makes you wonder if BofA secretly enjoys bad publicity! Either that or they are clueless as to how annoyed their customers are.

  18. Christa
    October 4, 2011

    I think it’s horrible that banks pushed debit cards and ATM cards so that they could decrease their teller staff and then they turn around and charge customers to use those very cards! I am very satisfied with my small, local bank’s policies; they make sure that treating the customer right is the top priority.

  19. Susan
    October 5, 2011

    back to hide my money under the bed, like the old days :p

  20. 101 Centavos
    October 6, 2011

    I wonder if this will be a “New Coke” moment for B of A. Maybe they don’t really care. When the federal government and Warren Buffett got your back, you can afford to be this cavalier.

  21. BeatingTheIndex
    October 6, 2011

    Seems to me BofA are desperate for money. Now it’s up to the consumer to deliver a message back: bail out in droves!

    No need to be lazy and absorb the fee, plenty of alternatives out there like you pointed out MC!

  22. Miss T @ Prairie Eco-Thrifter
    October 6, 2011

    Maybe it’s because I live in Canada, but I am used to fees like this. Our banks tend to charge a fair bit. I guess that is why I like using a credit union- their fees are a bit more reasonable. I am glad there are some alternatives for you folks though- seems this B of America change has caused a lot of ruckus.

  23. SB @ One Cent At A Time
    October 23, 2011

    I have BofA account but I never use debit card for anything. If you are not much cash guy like me, and you need cash, go to teller and withdraw cash in large sum so that it an last at least a couple of months. Use credit card for everything else

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