Over the last decade, ‘nickel-and-dime’ fees have become the normal course of business at many of the largest banking institutions.  Some of the tricks that these banks use to squeeze more fees out of account holders have angered law makers and consumers alike, but this has not stopped the banks from instituting more fees that do little more than line the pockets of the bank’s shareholders.  Here are some of the most devious tricks the largest banking institutions use to remove money from your accounts to be placed into their own.

Checking Accounts

• Authorization Holds – Authorization holds are holds on the funds in your checking account to pay for debit card purchases that have not yet cleared, but the problems occur when the holds are for more than the person has actually spent.  Because these funds are being ‘held’ by the bank, they are not removed from the account balance, but if the person spends more than what available after the funds being held are deducted, then they may be hit with overdraft fees even though they have not spent the full amount in their checking account.

• Transaction Reordering – Transaction reordering occurs when banks process transactions from highest to lowest instead of in the chronological order that the transactions were actually made.  This increases the chances of lots of little overdrafts, for which the person is fined $35 per occurrence, instead of one large overdraft.

• Zero Balance Fees – Zero balance fees are charged on accounts that have been overdrafted, emptied by the consumer, or emptied by the bank for fee charges.  This fee is charged for everyday that the account balance is zero or negative, causing people that depend on a biweekly paycheck to incur many fees before their next paycheck is deposited.

• Exit Fee – This is a fee that is charged for closing your account.  If you are tired of the fees that your bank is charging and decide to move your money to another banking institution, you cannot simply remove your money or the bank will begin charging you a zero balance fee.  You must close the account entirely.  There is no reason for an exit fee other than to penalize consumers for moving their money elsewhere.

Advertisers have made an art out of making something seem like it is a great deal, especially when it is not.  There are tons of phony bargains out there waiting for you to spend your hard earned money on them, but being able to identify them for what they are will make you much less likely to fall for the tricks.  Here are some false bargains that you can definitely do without.

Frequent Flyer Reward Credit Cards

When these credit cards first hit the market, they were the latest thing and their popularity skyrocketed to where nearly everyone who flew periodically had some type of frequent flyer reward credit card.  Now that the novelty has worn off, many people are seeing that these credit cards are not such a great thing after all.  In the intervening years, the benefits have shrunk, the number of seats available has decreased, booking fees are imposed for most flights, and the number of miles needed to redeem a reward has increased dramatically.  A better choice would be a reward credit card that offers cash back on your purchases so you can choose what to purchase with that money.

Interest Bearing Checking Accounts

A checking account that earns interest for the account holder sounds like a great deal – until the terms and conditions of the account are read.  Most interest bearing checking accounts offer a very small interest rate, often less than 0.25%, but require high minimum balances to avoid monthly maintenance fees on the account.  For example, the average minimum balance for these checking accounts is $3,400, an amount that will earn less than $5 in annual interest, but dropping below this amount could cost you $25 per month in maintenance fees for the account.  You are much better off opening a free checking account that does not pay interest and has a much lower minimum balance requirement.

Going Out Of Business Sales

Many people go to “going out of business” sales expecting to actually see fire-sale prices, but this is often not the case.  In order to make as much money as possible, many closing stores advertise sale prices that are not much different from the prices you would have paid before the liquidation started.  Price shopping competitors will quickly show you that there is not much difference in the price and you may be better off buying the item from a competitor that will be around long enough to handle any issues that arise with your order.

If you’re an existing credit card member of Bank of America, you can still get a $75 bonus for signing up for a Free MyAccess Checking account through March 31, 2010.

There is a minimum initial deposit of $125 to gain access to the free account and get the $75 bonus.

Even though there is that minimum requirement, there is no minimum balance required to be maintained, although you do have to keep the account opened for at least 90 days to receive the bonus offered.

There is also no  monthly maintenance fee associated with the offer or the requirement of a direct deposit.

Other benefits include: 

• Manage your accounts easily with free Online Banking service with free Bill Pay

• Access to Customer Service 24/7 online or by phone

• Free Bank of America Visa Check Card with Total Security Protection Package

• No Bank of America charge for using non-Bank of America ATMs located in the U.S.

If you’re looking for a checking account that bears interest, this won’t be the one for you, as it’s not an interest earning checking account.
 
Remember that you must be an existing Bank of America credit card customer to take advantage of this offer, and is only applicable to the new MyAccess Checking accounts. If you have another checking account with the company but don’t have a credit card, you don’t qualify for this particular offer.

While it’s not too difficult to understand a checking account as far as its purpose goes, many consumers fail to understand that a checking account is a product, and banks and credit unions can offer similar services with very different costs.

The first thing to consider is the the lifestyle you live. Are you a traveler? Do you travel internationally? These can be among the largest fees connected to a checking account when using a debit card or ATM to access your account.

If the answer to those questions are you don’t travel much and your decision for a checking account would largely be based on local use, then you can look at costs from that point of view. If you do travel a lot, the question then becomes what type of fees would be accessed if you were making overseas transactions with your account. It’s well worth the time spent to find these things out, as the cost differences between bank checking accounts can be huge.

Another major factor in determining which bank to have a checking account with is what types of fees are associated with using an ATM. Some banks will pay you back usage fees, while others charge for their use. Again, it can make a big difference in the costs connected to your checking account, so understanding those fees, if any, are important too.

One of the more important parts of checking today, as far as I’m concerned, is whether it offers online banking transactions. I’ve been doing online banking for years, and would have difficulty doing it any other way at this time. Large banks will have this, but possibly not all small, local banks. So it’s definitely worth asking the question and not assuming its part of the bank’s services offered.

What’s particularly effective and valuable about online banking is you can keep up to date on where your account stands far better than simply waiting for a monthly statement to arrive in the mail. If there is anything that doesn’t seem right, you can check it far quicker online than you can once a month.

Finally, be aware of overdraft protection and charges. Most banks offer overdraft protection, which has recently become a negative practice for them based on people claiming they had no idea they were covered for overdrafts.

The consequences of not knowing is a large number of fees which can add up quickly. You should ask if you’re covered by overdraft protection, and what the price of that service is if you overdraw your account. Each overdraft can cost a lot of money, so it can quickly rise to over $100 if you don’t pay attention to your account.

One thing you can do to protect yourself from these fees is to simply opt out of the program if you’re not careful in monitoring your account. If you do that though, you have to understand you’ll end up doing a transaction somewhere where it won’t be allowed to go through.

As you can see, opening and using a checking account can be a little more complex than you think, but it’s not rocket science. Just ask the right questions and be aware of fee structures and guidelines the banks offer.

From there take account of your own behavior patterns and make decisions based upon that. If you’re good at managing your affairs, then using the features available for a checking account is the best option. If you’re not, then utilizing the basic features of the account would be best for you, as it would save you a lot of money in the long run.

On the heels of its successful first quarter strategy of offering new checking account customers signing up for a Premiere or Interest Checking Account, Sovereign Bank is again offering $100 during the second quarter for those successfully opening a new checking account with them.

There are several thing a potential customer must do in order to qualify for the $100 bonus for opening an Interest Checking Account or Premiere Account. Here is what those steps to take are to get the incentive:

1. To qualify, you must open a new Sovereign Premier Checking, Business Owner Premier Checking, Interest Checking or Partnership Checking account by October 30, 2009, with a minimum opening deposit of $100;
2. The next step you must take is to ask for a Sovereign CheckCard (”CheckCard”) and make a minimum of 2 CheckCard purchases within 60 days after you open your account;
3. If you already have a savings or money market savings account, this next step won’t be necessary, but if not, you need to open any Sovereign savings or money market savings account with a minimum opening deposit of $100;
4. Finally, you must enroll in Online Banking at the time of the account opening. When you qualify, you will receive a credit of $100 to your new checking account within 75 days after you open your checking account. There is only one $100 credit allowed per customer.

No matter whether we’re living in tough or good economic times, it’s always best to take advantage of every type of additional source of income and interest we can in our personal finances and bank accounts, and even though a checking account interest rate will never be that high, it’s something we get for simply following the terms of service from the financial institution or bank.

In this case, the $100 dollars also has a great incentive to grab a checking account from Sovereign Bank. Another reason? According to Global Finance Magazine, Sovereign Bank is among the ten most safe banks in the world, another reason to seriously consider opening an account with them.

As consumers, we are doing all we can to make ends meet and start saving more cash. Interestingly, the one place people fail to notice they are losing cash is the exact same place they store their cash. Banks have been raising their fees and lowering their interest rates, leaving customers unsure of what to do. There is no chain binding you to your banking institution and may want to consider your other options.
Exploring Your Options

A credit union is one such option. Banks and credit unions do differ and you should take a look at what your local credit union have to offer you. There are over 90 million people who belong to credit unions across the country and nearly anyone can belong to a credit union because of their employer and other associations where the consumer belongs.

Exploring the Differences

Credit unions are owned by its members. When you open an account at a credit union, you essentially are part owner in the business. You are more likely to get better customer service that at your traditional bank. Credit unions are not designed to make a profit, therefore their fees are smaller and occur less frequently than at a bank. The profits that are made will then be divided up amongst account holding members. Banks keep adding fees in order to boost profits. Unlike bank, credit union ATM cards can be used at a large network of ATM’s for no fee. Some will even reimburse you for fees incurred from other ATM’s used.

Many consumers have joined credit unions only to get a good deal on a loan but then come to discover the other benefits, such as lower fees, better interest rates, and good mortgage rates. Many will find a credit union from information given out by their employer. Otherwise you can find a credit union for you here.

Deposits at a credit union are insured for at least $250,000 on each account. That coverage is provided by the Federal Deposit Insurance Corporation and backed by the federal government. If you haven’t taken a serious look at your bank policies lately, now is a great time to do just that. You may be surprised to see exactly how much your bank is costing you each month. You can always comparison shop with other local banks and see what kind of deal you can get, or even negotiate with your current bank to get a better deal but if you find that banks are no longer meeting your financial needs, check out your local credit union for more options.

National City Bank offers several checking account options.  If you open one between now and December 31st, 2008, you can qualify for a $150 Visa Gift card.  That’s a nice little bonus for yourself – or to give as a holiday gift!

To qualify for the gift card, here are the 3 steps you must take:

1. Apply online, visit your local National City branch or call 1-800-622-6650 to open your checking account by 12/31/08.

2. Use our Switch Service to set up a $250 direct deposit from your paycheck into your new checking account. Direct deposit must be received within 60 days of your account opening.

3. Accept our free National City Visa CheckCard** and make at least 10 purchases within the first
60 days

Your checking account choices with National City include:

Elite Checking – Minimum $50 to open your account, a $15 monthly fee (unless you have a $10,000 balance and that fee is waived); one box of free checks, and a 2% APY.

Free Checking Plus – Minimum $50 to open your account, No monthly fee, one box of free checks.  This account does not earn interest.

Interest Checking Plus – Minimum $50 to open your account, $10 monthly fee (or maintain a $1,500 minimum daily balance and skip the monthly fee), one box of free checks.  The interest earned on this account depends on your balance – up to $4,999.99 earns .25% with higher balances earning higher interest.

Interest Checking – Minimum $50 to open your account, minimum $10 monthly fee (or maintain $1,500 minimum daily balance and skip the monthly fee), no free checks.  Interest is the same as Interest Checking plus, up to $4,999.99 earns .25% and higher balances earn additional interest up to .60%.

Free Checking - Minimum $50 to open account, no monthly fee, no free checks, and no interest earned on your balance.

Online application for a checking account with National City is limited to residents of FL, IL, IN, KY, MI, MO, OH, PA, WI.

Turbo Checking is a reward checking account from Charter Bank. For all balances up to $25,000, you will receive a 6.01% APY provided a standard list of requirements is met each statement cycle. All balances that exceed $25K, the APY will be 1.01% APY. If the requirements are not met for the month, the APY drops to .25%. Additionally, if the monthly requirements are met, Charter Bank will also refund all ATM-related fees.

The requirements for obtaining the high interest rate are as follows:

You must make at least 13 transactions each month using your debit card. Note that ATM transactions do not count.)

• You must sign up to receive electronic statements.
• You must access your bank account online at least one time a month.
• You must link at least one direct deposit or one ACH automated monthly debit.

Applicants nationwide are able to open account via the online application process but only one account per household is permitted. There is a minimum of $100 deposit needed to start the account and the bank will review your information via ChexSystem. Charter Bank does not charge any monthly service fees and there are no regulations for a minimum balance. Charter Bank is FDIC insured and most branches are located in the state of New Mexico, including the cities of Albuquerque and Santa Fe.