$5 ATM Fees

[TiredX2]

Why do people even use banks anymore?

http://www.huffingtonpost.com/2011/03/17/chase-5-atm-fee_n_836959.html

In Illinois, JPMorgan Chase is testing $5 fees for non-customers, in Texas, it's $4. If the trial runs make enough money, the fees could be rolled out nationwide, the Wall Street Journal reports.

[MusicianDad]

Because it beats keeping $50,000 in life savings under your mattress...

If you want to avoid user fees when taking money out of the bank, the simple solution is don't take money out of the bank in a way that would result in user fees.

Though, I do think the US could possibly benefit from a more nationalized debit system like the one Canada has with Interac. 

[anjelika]

I use a local bank (four branches) that does not have institutional ATM fees AND will refund fees incurred at the ATM itself.  Dump the big guys!

[TiredX2]

Originally Posted by MusicianDad 

Because it beats keeping $50,000 in life savings under your mattress...

If you want to avoid user fees when taking money out of the bank, the simple solution is don't take money out of the bank in a way that would result in user fees.

Though, I do think the US could possibly benefit from a more nationalized debit system like the one Canada has with Interac. 

Sorry, I wasn't clearer--- I meant why does anyone use a National bank with their "too big to fail" history over a credit union.
 

Originally Posted by anjelika 

I use a local bank (four branches) that does not have institutional ATM fees AND will refund fees incurred at the ATM itself.  Dump the big guys!

Awesome.  Sorry I wasn't clearer earlier--- your local bank sounds a lot like a credit union.  I love the ability to use any credit union ATM for free.

[MusicianDad]

I use a bank, I love my bank. I used a credit union for a while, and lets just say I was less than satisfied with how they operated. For one thing I could never get my debit card activated because they mailed it to you and I wasn't able to get down to there before it closed to activated it, for another the first time I made it down there to do anything it took for ever just to get them to pull up my account. The second time I made it down there it was to close the account I had had for two years, with a bank card I never managed to activate (which I got a month after the account). 

So I switched to a bank, a rather large one, at that. That has better hours and is much easier to get things done with. Credit unions don't always meet a persons needs.

[Cyllya]

I use a credit union, and I'm pretty happy with them, but at the same time I'm jealous of the Chase and USbank customers who have a branch and an ATM freakin' everywhere!

Actually, isn't this fee for non-customers, i.e. people who don't have a Chase account but are trying to use a Chase ATM? You usually don't have a choice of ATMs, except to try to put yourself in a position of not needing one.

[34me]

We have used a credit union forever but I agree, they are not always convenient. I do all our banking because they are only open the exact hours dh is at work. If Chase charges $5 to use their ATM, I just wouldn't use it. I find it's most convenient to get cash back after I make a purchase at a store. It doesn't cost anything and I don't have to make another stop.

[monkeyscience]

This is why I carry emergency cash. Also why I do choose to bank at a HUGE national bank, even though DH hates it. I like having ATMs everywhere! Also, buying a pack of gum with your debit card and getting cash back at the grocery store is another good option.

I do agree that these fees are crazy outrageous, though. Which is the other reason (besides, obviously, not wasting my money) why I won't use ATMs not belonging to my bank. If people wouldn't use them, they wouldn't get their stupid fees, and they'd drop them.

[Kyamo]

They do seem outrageous, but on the other hand, there have always been fees for using an ATM that does not belong to your bank. I avoid those fees by only using my banks branded ATMs. I avoid the chequing account fees by keeping a minimum balance, etc. At least most of the bank fees can be avoided in some way. I have paid very very little money in bank fees throughout my life, mostly from the few times I made a mistake.

[shayinme]

Originally Posted by MusicianDad 

I use a bank, I love my bank. I used a credit union for a while, and lets just say I was less than satisfied with how they operated. For one thing I could never get my debit card activated because they mailed it to you and I wasn't able to get down to there before it closed to activated it, for another the first time I made it down there to do anything it took for ever just to get them to pull up my account. The second time I made it down there it was to close the account I had had for two years, with a bank card I never managed to activate (which I got a month after the account). 

So I switched to a bank, a rather large one, at that. That has better hours and is much easier to get things done with. Credit unions don't always meet a persons needs.

This is pretty much why I have stayed with my bank rather than a credit union. In my area there are tons of credit unions but they don't seem terribly user friendly as far as hours, ATM's, etc. The bank I use is a fairly large regional bank so it makes it nice when traveling. That said I am thinking of opening up a small savings at my local credit union since the idea is to save the money but as far as my primary account, probably will stay with the bank.

[TiredX2]

Originally Posted by shayinme

This is pretty much why I have stayed with my bank rather than a credit union. In my area there are tons of credit unions but they don't seem terribly user friendly as far as hours, ATM's, etc. The bank I use is a fairly large regional bank so it makes it nice when traveling. That said I am thinking of opening up a small savings at my local credit union since the idea is to save the money but as far as my primary account, probably will stay with the bank.

Just so you know, the majority of credit unions have all agreed to NOT charge fees to each other for using their ATMs.  I rarely see one of *my* credit union's ATMs but can generally find *some* credit union's ATM.
 

[Purple Sage]

Originally Posted by TiredX2 

Just so you know, the majority of credit unions have all agreed to NOT charge fees to each other for using their ATMs.  I rarely see one of *my* credit union's ATMs but can generally find *some* credit union's ATM.
 

This is so true.  I can use just about any other credit union's ATMs for free.  I love my credit union - great locations, hours, interest rates, and fantastic customer service.

[Soapmom]

With so many choices for banking, I don't think they will get away with the $5 ATM fees for long. Why would anyone stick with banks that charged fees like that.

[monkeyscience]

Originally Posted by Soapmom 

With so many choices for banking, I don't think they will get away with the $5 ATM fees for long. Why would anyone stick with banks that charged fees like that.

That's the genius of it - they are charging people who aren't their customers, so why should their customers care? It's just another way of exploiting people who haven't planned ahead or have some sort of unforseen need for cash.

[MusicianDad]

Or it could be they need to be able to pay for upkeep of the machines, and their customers are all ready "paying" so to speak by letting the back hold onto and use their money.

[moonfirefaery]

I work for a bank. All of our ATMs have very up-to-date technology inside of them. We also have to have network support for them and a team of employees who can fix them. For those not attached to branches, we must pay a third party to retrieve deposits and add new funds to the ATMs. We have to pay for that.

Does your bank have a customer service line? They have to pay for the automated system, the telephone lines, the calls, the employees paychecks, the light bill, the rent on the building the employees are in, for the hold music, for the language line interpretation services. We have to pay for every computer being used and for tech guys to keep them running.

Your bank has branches... We have to pay for lights, water, employees in all of those branches.

Does your bank have online banking or bill pay? We have to pay to maintain that website and provide those services.

It is expensive to run a bank, especially a bank that offers 24/7 customer service, lots of branches, online banking, free bill pay, lots of ATMs, etc. The more conveniences your bank offers you, the more it is spending on you.

You don't bank with us. You bank with one of our competitors. We're not earning any money off of you. But you want us to give you some of our money, from our ATM, that we put up there for our clients, who we do make money off of. Even though we're not your bank, we're going to provide you access to your account through our customers' machines and services.

And we just can't afford to only charge a buck or two anymore now that people can opt out of overdraft services for ATM & everyday debit card transactions. We can't give you all of these conveniences for free or for cheap anymore, and we worry more about saving our clients money than our nonclients.

Don't get me wrong... I know overdraft fees suck, and the banking industry needs a makeover. But that's why the fees have gone up. My bank hasn't changed it's fee, but has recently instituted minimum activity requirements to avoid a small monthly maintenance fee. No one likes it...but we have to stay solvent and still provide convenient services to clients.

[mattemma04]

I pretty much just use my local bank ATM to deposit and withdraw money. I don't use any bank or credit card company that charges me fees just to use them.

[Dar]

USAA. They rebate my ATM fees from any ATM, up to some amount that I've never exceeded. They also let me deposit checks with a smartphone app or a scanner. No-fee checking account, of course, and a year or so ago they started allowing anyone to open an account, not just military and former military and their dependents. I USAA....

[Addie]

Originally Posted by Dar 

USAA. They rebate my ATM fees from any ATM, up to some amount that I've never exceeded. They also let me deposit checks with a smartphone app or a scanner. No-fee checking account, of course, and a year or so ago they started allowing anyone to open an account, not just military and former military and their dependents. I USAA....

Yes, I haven't paid an ATM fee in years. We do nearly everything we can through USAA, their customer service is remarkable! And I didn't know they relaxed their membership requirements, I'll have to spread the word! Love them.