Question: As I walk the weary yet promising path of frugality, I have long been in > search of a reasonably competent bank, that charges a minimum of fees. > Washington Mutual is new to the Atlanta area, … > I was amazed to find out that they offered a no minimum, no maintenance, no > teller fee checking account, coupled with a free savings account if one > agreed to transfer funds from checking to savings on a monthly basis. > Online banking was free, but there is a $5/montly fee for online bill pay > (free for the first month). > Some disclaimers:
Answer: Here is another:
The current Newsweek (Nov 18, p.56) has a column about these “free checking” accounts from WaMu and the many other banks following suit.
Banks love these accounts because they rake in overdraft fees averaging $110-150 per account per year. They even allow “courtesy overdrafts” in cash at ATMs — effectively no-hassle payday loans, but at a higher cost.
These accounts are being marketed to customers likely to overdraw. Some will save money because these accounts generate only one overdraft fee, where bouncing a check can generate three fees and lead to financial blacklists. But others may find it cheaper to deal with predatory payday loan sharks.
For disciplined customers who never overdraw, these can be a good deal.
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