U.S. banks may end free checking accounts: report

Reuters ^ | June 17, 2010 | Sakthi Prasad

[Vermont Lt]

You probably do not fit into that model. My guess is that your transactions and online banking work will make your profile a good one.

There are literally millions of inactive or low activity accounts. I know I have three or four accounts that my kids set up over the years. They might have $100 in them, with no activity for years. At $4 a month, it doesnt take long to go belly up on those.

Now my checking account (for my business) probably never has more than $500 in it. BUT, I probably move $250,000 through it every year—in Debit card charges, ATM uses, bill pay, etc.

They make a ton in transaction fees from the networks on my business.

So, they will target those low balance, low lifetime value accounts for extra fees or minimums.

You might be surprised at how much the “relationship” value is taken into account at these banks. They DO care about the customer and their potential lifetime value. Its not all about the current cost, but the lifetime cost. But, in some cases, it is beneficial to end the relationship if neither party benefits.

[GOPJ]

This isn’t the change we hoped for...

[TexasCajun]

Anyone stupid enough to write a check without the funds in the account should have their account charged a hugh amount and terminated!!!

What a hugh asinine comment.

[BenKenobi]

Right, I’d be thrilled if they charged 4-8 a month.

I get charged 30 a month. Glad to know I’m being gouged.

Thanks for your post. Without people like you, we’d never know what a fair rate on a bank account would be.

[BenKenobi]

Exactly! I can’t wait to get to that point now.

Here’s a lesson, if you treat the poor student well, he will remember it when he isn’t a poor student anymore.

[floriduh voter]

credit unions too? Next year’s gonna be real ugly and every year after that until the DEMS are booted out of office including Barack O’Stalin.

[meyer]

Banks incur an expense of between $250 and $300 a year to maintain each of the roughly 200 million checking accounts, the paper said citing industry estimates.

I seriously doubt that figure.

[yield 2 the right]

The Nov. elections are too late!
The wrong side was won!

[dalereed]

There is no excuse to write a bad check EVER!