Although not new, fees help financial services companies remain profitable. At the same time, raising fees, or imposing new ones, can empty-out customers' pocket books.
With banks nationwide continuing to impose fees on customers, you might be inclined to take your money elsewhere. However, depending on how you use your banking accounts and the type of accounts you have, switching banks may not be in your best interest.
Before you close any of your accounts, conduct a self-financial evaluation. Ask yourself how you do your banking. Are you an individual who likes to bank in person at a branch, or would you rather use self-serve transactions, like at an automated teller machine (ATM)? Maybe you prefer phone or Internet banking, instead?
Remember, at some financial institutions, in-branch transactions can be more expensive. More and more banks are directing their customers to self-serve transactions. If you want to do your banking in person or at an ATM, you might want to consider choosing a financial institution with branches and ATMs that are located close to where you want to do your banking, like close to your home or work.
Take a look at the financial institutions that best fit your needs. Inquire about the type of accounts they offer and what fees, if any, are associated with those accounts. Some basic accounts have a fee for each transaction that is made, while some have no fees at all. Others may have a fee structure based on the total deposits held within the bank, or require that a minimum balance be maintained.
If switching accounts is still in your best interest, here are some things to remember before you move your money:
Gather Financial Information
Create a list of all automatic billing and direct deposits that are linked to your current account, including the due dates for upcoming transactions.
Open a New Account
Before you close your current account, open a new one. Set up any automatic billing and direct deposits who want linked to the account.
Close your Old Account
Close your old account promptly once all pending transactions have cleared, to avoid collecting administrative fees.
While the process of opening a new account and closing an old account may take a couple of business days, as a customer you have the right to choose where to you want to bank.
As a response to Bank of America’s decision to raise debit card fees, Representative Brad Miller (D-N.C.), a member of the Financial Services Committee, introduced a bill on Oct. 4, 2011, that would bar banks from imposing fees on customers who decide to close any account. The measure also states that the bank is required to close the account within 48 hours of receiving the customer request, and limits a lender’s ability to report negative balances from closed accounts to credit reporting firms.
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