Jon Fox
CALPIRG Education Fund
San Francisco, CA – New research released today by Bankrate.com highlights that ATM fees reached record average high of $2.50. Combined with the internal bank fees for using a competing banks’ ATM, many consumers can now expect to pay up to $4.07, a record increase of 7%, each time they withdraw money.
“This report confirms what consumers already know – bank fees are increasing and free checking accounts are harder to find,” said Jon Fox, Consumer Advocate with CALPIRG, adding ”When big banks start charging for basic services like using your debit card, it’s time for consumers to vote with their wallets and take their business elsewhere.”
While free checking accounts are increasingly harder to find –39% are free checking accounts compared to 76% in 2009 – alternate options still exist for consumers. CALPIRG urges consumers to shop around and move their accounts to banks with better offers.
“Free market economics work both ways, and consumers have the power to influence corporate decisions,” said Jon Fox. “If enough consumers demand change, more banks will lower their rates to attract new customers.”
With a little preparation, consumers can easily switch banks and avoid over-draft fees or missed reoccurring payments. Before consumers make the move, they will want to complete the following steps:
Step 1: Open a new account at a bank or credit union of your choice.
Step 2: Switch all automatic withdrawals and deposits to your new bank. These include direct salary deposits and auto bill payments.
Step 3: Write a check to yourself for the amount remaining in your old bank account and deposit it in your new account. Don’t forget to figure in any outstanding checks or automatic payments since automatic withdrawals or outstanding checks can overdraw your account.
WARNING: Your account is not closed yet
Step 4: Once your account balance is at $0, call your old bank’s customer service line and let them know you would like to close your account. Have your account information ready when you call. (A bank statement should have most of the information you’ll need).
To help ease the bank move, CALPIRG put together the following tips: [The full version is available online at: http://www.calpirg.org/bank-tips ]
The California Public Interest Research Group (CALPIRG)Education Fund is a result-oriented public interest group that protects consumers, encourages a fair sustainable economy, and fosters responsive democratic governance.
END
– ### –