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-- could be the end of an era no more free checking.
It's already happening.
Bank of America and Wells Fargo two of the nation's biggest banks are ready to roll out new fees and in some cases you may not know they've started.
For more on this I'm joined by John Alzheimer at credit dot com in Atlanta John great to -- you -- Thanks -- are right so you know.
Free checking isn't something that we've always -- it actually came about because of all the competition in the industry right.
But now that we have that card act in place that's really encourage these banks to do a bad thing tell us how that happened.
Wow that's a -- the grass isn't always greener on the other side of the -- and this is one of the so odd that the downsides that frankly the card act.
Largely eliminated -- over limit fees from her credit cards which is gonna cost the credit card industry somewhere between fifteen and 25.
Billion dollars that's billion with a B.
That's so much money Gerri they're gonna wanna subsidizing make that up somewhere else and its feet whack -- -- they knock one out and they just replace it will one -- -- -- and this is one of the -- and now we're going to see.
On checking -- So try as you -- to regulate the industry they come back and bite us in the butt anyway.
Tell me how much -- -- he's gonna be is everybody doing it does everybody have to -- herd together and jump up that.
Bad in the cliff together or is will there be some banks that won't do it.
-- -- did -- then is is the feed you we already know what that he's going to be that he will generally be in the neighborhood of five to ten dollars per month and her position and I think quote -- may yet see.
For your checking account.
Here's the good news we tend to focus -- on the top five to ten banks and pretend like that they're the only banks in the United States.
There over 101000 credit unions.
At a bunch of smaller local regional banks who are not going to be doing -- because they're looking at this is an opportunity to steal business away from the big boys so just because what else -- -- -- some of the really big ones and it does not necessarily mean it's going to be an.
Across the -- phenomenon.
Well yet another reason to get a credit union right.
That you probably get better interest returns on your money at lower fee is you're not gonna have to pay a monthly maintenance -- I think people really need to shop around if they're frustrated.
But tell me this I mean often what the banks will do with if you're a good customer you maintain a certain balance level.
Fell exempt you from the -- you think that will happen.
Yeah absolutely not only is it going to.
Good beset in such a way that if you have a minimum deposit on.
On and in the account working out a direct deposit for example or use online second only defeat but if you have multiple footprints what the bank -- you have -- car alone.
-- -- Pay a mortgage in addition to your checking account then -- more likely to be lenient on the feet and if you just have one very very dormant checking account with a few hundred.
-- okay well what was that level -- -- within a thousand bucks are we talking 500 dollars how much money would I have to maintain that checking account.
So that wouldn't get the monthly -- Generally it's going to be in the neighborhood of 250 to 500 dollars but -- Is the best thing to do is to pick up -- Arnold talked to the Taliban next time you're in a bank branch -- assassin look I wanna avoid this nine dollar a month -- How much -- I have to have on the deposit to avoid and what this is also a good idea to have that little bit of a cushioning your checking account so you don't write checks they may.
We should also mentioned that that people are facing the opt in opt out choice with their checking accounts right now -- tell people about that and what they need to do.
Not Segway Gerri by the -- -- absolutely you may have.
But received in the mail -- you and the majority of people watching probably do it in the garbage immediately without receipt -- about rating it.
At any notification that you are now are going to have to opt in that.
For overdraft protection.
Condit luck this is the best deal going you do not want to write checks that are going to -- for a variety of reasons not bad not the least.
Then it's gonna be reported to Texas in which is a checking credit back credit database which is gonna make more pivotal pre open accounts in the future -- absolutely proactively pick up.
The telephone call your bank.
Opted for the protection.
But what this identify the much larger picture here people who are writing checks that close to the margin -- zero dollar mark in -- checking accounts.
They really have bigger problems than -- about overdraft protect.
Hate that protection I -- tell you the fees they were charging were so high and if you're using a debit card rather than check she didn't really want -- up over and over again and I know the card act.
Fixed some of this -- -- of the day just need to know how much money -- -- your checking account and deal with the reality.
This says this is personal finance 101 Gary know how much is -- your check here.
Can't count right at every single -- and I just because -- -- checks that are checked but doesn't mean that's equal to money.
Am absolutely not John thank you for that we appreciate your help.
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