By now you have heard that the Durbin Amendment to the Dodd-Frank Wall Street Reform Act has passed in Congress. It was originally supposed to help retailers and small businesses save money by reducing the transaction fee that they had to pay to the banks so that they could accept debit card transactions. Theoretically, this savings could then be passed on to us, the consumers. For more information on the history of debit cards and how they actually save money
for banks-check out this
article from the NY times.
However, the banks are especially good at jumping through any hoops Congress puts before them. Bank of America and many other banks are increasing their fees and restrictions on savings accounts.
Specifically, Bank of America will start charging a $5 fee each time you use your debit card beginning in 2012. The exception to this are those with a balance of $20,000+ or a mortgage with Bank of America. Citibank is also increasing monthly service fees and higher minimums to qualify for their free accounts like EZ Checking which will start being charged $15 a month if you don't carry a minimum balance of $6,000 (previously $1,500).
| We too at The Thrifty Scholar are good at jumping through hoops. Here are our thoughts on what consumers should do next: |
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