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Greg McBride from Bankrate.com on what fees to watch out for as free online checking declines
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Welcome back why wasn't in -- casino war -- nightclub or anywhere else you'd imagine you would pay five dollars to take your own money out of any him a minute airport.
Really annoyed me anyway it's a new trend.
If you look at the national ATM surcharges right now -- at a record high.
The average is two dollars and fifty cents -- current high when you think about it.
We're joined right now by Greg McBride the senior financial analyst at Bankrate dot com -- -- Good morning Lauren thanks for joining us from -- beach Florida.
North Palm Beach, Florida OK so really quickly before -- into this let's just take a look at the highest aids cancer charities out there Eaton C Denver tops the list.
At 280 break here in New York to seventy -- goes on.
The -- if you consider this cheap.
-- Minneapolis at two dollars and twenty cents.
Chicago is also on analyst -- of high gas prices up.
Anyway all right breaks and now -- we also saw that this whole idea of free checked gained an ATM.
Fees everything's going up free checking it -- -- for tomorrow right.
-- it's actually seen a very significant decline in the availability of free checking over the past few years it back in 2009.
76%.
Of non interest accounts more than three and four.
-- -- That's being cut basically in half -- down 39%.
Now.
I'm -- can be traced to a couple of regulatory changes.
That have left banks in the big revenue gap that they need to fill -- it's doing away with free checking in hiking some of these other fees like ATM fees.
That are designed to fill that revenue gap -- and bounced check fees overdraft fees what are some of the other fees that customers should be on the lookout for.
Are you noted the overdraft fees the ATM fees as well in addition.
Monthly service charges on checking accounts -- and the balance requirement to avoid that fee so even if the -- itself doesn't go off.
If they increase the balance requirement that's a stealthy increase because a lot more people are gonna end up paying that fee they hadn't previously at the lower -- -- that the next question Greg do customers know about these fees or RNA stealth these ballot -- hear it here facing these days.
Well.
Because -- do they know about it or should they go about it -- yes people that.
They are notified of these changes we are -- but they don't always Reid beat the inserts that com.
People aren't always on their toes with regard to -- avoiding ATM fees and avoiding overdraft fees got.
You know so I think -- that take away years.
The -- -- completely avoidable -- so we have to do so.
Means you have to really be on your -- you have to develop good financial habits and I think -- got to be pretty disciplined about things like.
Keeping accurate tabs on your balance get planning ahead as to where and when you make -- ATM withdrawals.
Reading the fine print got it OK so any legislation there's lots of legislation going on right now I know a lot of it is really hitting the bank's hard that's -- need to increase their sources of revenue.
-- seeing us.
But is any minute card act for -- to protect consumer protection lines.
Making this a little bit easier for consumers understand that certain things are going up.
Well mean.
These are things that don't necessarily pertain to the card act and into -- which pertain to credit cards.
Actually did I I had a number of very good provisions that as with all of these.
There are unintended consequences which should be their life to things like tighter credit are higher interest rates or in the case of these these the deal bank accounts.
Fewer free checking accounts and higher fees.
Now OK so the -- play according -- the latest report right.
From Bankrate -- fifteenth annual checking survey the average monthly service -- five dollars and 48 cent cents up 25% in just a year right.
Honestly how many people would rather paid -- 550 a month.
And actually switch banks and have to re -- their direct deposit and all the automatic bill payments.
We'll.
Time is money and here's the thing.
It -- that balance requirement.
You know to avoid that 548 is just one way to get around that -- another wave it's actually much lower hurdle to clear.
The most common way to avoid -- monthly fees to sign up for direct deposit of either your paycheck or your Social Security checks out a lot of people can avoid -- be.
Without having to switch accounts and without even having to switch banks.
It's only if you're not able to satisfy those requirements at your current bank that you -- -- start looking elsewhere and it you do look elsewhere.
There are plenty of smaller community banks credit unions and online banks it's still offer that free checking on a stand alone they.
So this is good business for some other sources that's good that we pointed that out but -- -- for the banks.
I mean -- -- reason they're doing so so how should the consume what what how do you feel about.
-- -- outlook against consumers these -- are completely avoidable regardless of how prevalent -- become or how high they go state are okay.
-- and I think that's really the main point for for people to keep in mind.
ATM fees.
If you look at your withdrawals to your -- bank's ATM network.
You know -- never have to worry about them regardless of how high they go overdraft fees and we look this is the financial equivalent to be able to walk and chew gum.
47 online and mobile account access there's really no excuse for continually over drawing your account.
Sure anybody can slip up warrants that that's what you -- request the link between you checking account your savings account.
That we it's your money covering any shortfall -- having to pay the bank to borrow from them.
And in finding the right account for your needs you know again we've we -- despite the decline in free checking you know we wanna drive home the point that.
Those -- accounts are still out there in just because your bank is instituted to -- doesn't mean you're gonna get stuck paying it.
Look at things like direct deposit -- based on other accounts you have with a bank getting debt the way.
Greg McBride excellent tips thank you so much for coming on.
And basically for telling us that free -- -- that's Bankrate dot com we brought to the results of the latest survey.
On -- 76%.
Of checking -- create three years ago now it's less than 40% yeah day.
Hate to be consumer --
