By Adam Ghassemi
NASHVILLE, Tenn. – Banks are rolling out new charges for using your debit card at branches across the country.
Charges range from $5 per month at SunTrust, $3 per month at Wells Fargo and $4 per month at Regions just for swiping your card anywhere besides the ATM.
First
Tennessee will waive the charge if you have direct deposit setup on some traditionally
free accounts. Other accounts won't be charged the fee if you maintain
combined minimum balances of $5,000 or more.
Bank of America announced Thursday it will charge $5 per month starting next year.
The fees are blamed on the Durbin Amendment to the Wall Street Reform and Consumer Protection Act of 2010, which goes in effect Saturday. It cuts the amount banks can charge merchants every time a consumer uses their debit card. Bank losses are estimated to be over a billion dollars.
"I am going to another bank," said Melissa Whitelaw who uses her debit card all the time. "I haven't made my mind up yet. Something that just doesn't charge too much because it's too much money."
That's why places like Tennessee Credit Union are seeing more new faces.
"Credit Unions historically and particularly here don't like charging fees," said President and CEO Michael Martin who said the main reason their 25,000 member base is growing is no debit card monthly fee.
"They're telling us that they're not looking forward to it and that when it does start that they'll be looking for a place to move their account," said Martin.
Some people worry once new bank fees start they will never end.
"As soon as people rebel against it they'll take that away and do something else to make money. They're going to make their money one way or another," said bank customer Charles Titus.
It's why Whitelaw knows she has to choose carefully to make sure her money goes where she wants. "Being totally ripped off and I don't like being ripped off. Makes you just want to leave the bank," she said.
Debit cards are free at Tennessee Credit Union and many others. Martin said he can't promise it'll stay that way forever, but they have no intention of charging their members a fee.
The new fees don't apply to every account with a debit card. Contact your bank or credit union to see if they plan on adding a monthly fee in the coming months.
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