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Bankrate.com's Claes Bell on the controversy surrounding the new fees many banks are going to be charging for debit card use, plus how consumers can f...
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Think of America's decision to charge customers five dollars per month for using their debit card is causing a lot of controversy.
And now other banks are also planning to get in on the action claiming that they need a new source of revenue.
After the Fed put a cap on swipe fees joining us now with the latest on the east bank fees is class valid Bankrate dot com.
Class you know whenever I shop for a refrigerator.
Are or a microwave Bob and I get that I need to maybe do some comparison shopping -- -- -- take some tires.
But it seems like I'm probably going to have to do the same thing with getting a new bank -- -- all these fees are adding Japanese teens.
They are fewer places to turn the where I'm not have to pay to park my money.
That's a that's true I think we're seeing a lot of the larger national banks here.
-- move towards monthly fee as sort of the standard for larger national banks.
But people sort of number they're still gonna be free checking offered in a lot of places going forward community banks credit unions and small.
You know online banks and and small banks are still going to be offering you know free checking for people -- -- are going to be out there -- -- that -- find.
All right so how can tell us can we find any mention credit unions and an an online banks I mean how is it illegal about figure out what the best bank is.
For our needs.
Well I think people let's take a look at you know what exactly Milliken for checking account so if you're the kind of person -- a lot maybe it's really important you that there's a branch in every city.
You don't wanna go for maybe a larger bank.
But if pricing is more important you're gonna credit unions and small banks have you know generally lower fees.
Better rates -- savings and things like that so it was have to look at they're checking behavior.
You know if they use a Democrat on a regular basis -- gonna wanna make sure that democratic comes referring.
Something that -- co anchor Charles Payne mentioned in notice.
Classes -- is a fact that a lot of these fees are targeted towards people with not a lot of money Citibank considering a fifteen dollar fee -- I counts under.
6000 dollars I mean is this a trend that we're seeing with a low dollar amount you're gonna get hit with the highest fees.
Well part of the way that banks make money on checking accounts -- they make money on the spread between that rate they charge for loans and their cost of funds.
So checking account balances -- -- valuables they once -- for banks people are gonna have to have a bigger bounce in order to make that.
I take -- how profitable for a bank these days are inside think we are going to be seeing you know higher minimum balances.
You gotta be lucky enough to have one of those minimum balances and worked really hard the last thing before I let you are -- days free checking over -- we know that 70% of banks -- offering -- checking just a few years ago that number's been cut in half.
Are we gonna have to start eventually paying for everything that we get at banks.
Well I think going forward at least for the foreseeable future credit -- small banks on on -- online banks are still going to be offering that.
-- our country checking the people are have grown used to.
But you know I I think people need to keep an eye on their monthly statement and really.
Kind of look at their banking situation and make sure they're getting a good deal.
Alright great hits keep denying your money and -- save your money in order to avoid the big fees class.
