Banks charge a wide variety of fees these days. If I were to speculate, I would guess that the highest fees would be charged by the small local banks, because they would be in the most need of revenue. I would also surmise that online banks would charge the smallest fees, because they have less overhead than brick and mortar banks.
So, I decided to do a little comparison. I looked up the fees on three local banks, three national banks, a local credit union, and three online banks, to see where they stood in comparison to each other.
My Methodology
Since I’m in the market for a checking account, I compared checking accounts. And since I currently have a free checking account, I compared free checking accounts (or the checking account with the lowest available fee).
The fees I compared were the fees I’d be most likely to incur: ATM fees, stop payment fees and cashier check fees. I also compared overdraft fees and policies, because as I recently discovered, even if you’re diligent, you still might get hit with overdraft fees.
The final thing I looked at was the Bankrate Safe & Sound rating of the banks. For those banks with multiple branches listed, I documented the rating for Oregon/PNW, because that’s where I’m located. However, it seemed that if the rating varied, Oregon’s rating was always lower. So if you bank at the big banks, don’t be alarmed if the rating is lower than you’d expect. It’s probably higher in your area.
The Big Banks
Bank of America
- Account: My Access
- Amount needed to open: $25
- Monthly Fee: None, if you open online. Otherwise, $8.95/mo*
- Overdraft Protection: Required**
- Overdraft Fee: $35 per transaction (up to 10) per day. If acct. is overdrawn less than $5, each transaction is only charged $10 on the first day. ***
- NSF Fees: $35 per item
- Extended Overdraft Fee: $35, when your account has been in overdraft for 5 consecutive business days
- Stop Payment Fee: $30
- Cashier’s Check Fee: Unknown
- ATM: $2 for non-BofA ATMs; $5 for international ATMs
- Online Bill Pay: Free
- Transaction Post Order: Highest dollar amounts clear first
- Bankrate Rating: 4 Stars (higher is better)
*Fee waived, if you make one qualifying direct deposit/month or keep a balance of $1500.
**Policy is changing October 19 to allow opting out.
***After October 19, overdraft fees will not be charged for overdrafts of under $10, and fees will be limited to 4 transactions per day.
US Bank
- Account: Free Checking
- Amount Needed to Open: $50
- Monthly Fees: Free
- Overdraft Protection: Required*
- Overdraft Fee: 1 occasion: $19 per item; 2-4 occasions per item: $35; 5+ occasions: $37.50 per item
- NSF Fee: Same structure as overdraft fee
- Continuous Overdraft Fee: $8 per day, starting on the 4th calendar day your account is in overdraft
- Stop Payment Fee: 6 month duration: $30; 12 month duration: $40; 24 month duration: $50
- Cashier’s Check Fee: $7
- ATM:
- US Bank ATMs
- Copy of Mini-Statement: $1
- Copy of Full Statement: $1.50
- Non-US Bank ATMs
- Transaction Fee: $2
- Denied Transaction Fee: $1.50
- Balance Inquiry: $1.50
- US Bank ATMs
- Online Bill Pay: Free
- Transaction Post Order: Highest dollar amount to lowest*
- Bankrate Rating: 5 Stars
*Per customer service rep at my local branch, US Bank will be changing that policy next year sometime.
Wells Fargo
- Account: Free Checking
- Amount to Open: $100
- Monthly Fees: None
- Overdraft Protection: Required*
- Overdraft Fee: $35 per item, up to 10 per day
- NSF Fee: $35 per item
- Extended Overdraft Fee: $5 per day, starting on the 4th day your account is in overdraft
- Stop Payment Fee: $29
- Cashier’s Check Fee: $8
- ATM Fees (Non-Wells Fargo ATMs):
- Balance Inquiry: $1.50
- Transaction: $2.50
- Foreign Transaction: $5
- Online Bill Pay: $6.95 for 25 transactions. Each additional transaction is $.40*
- Transaction Post Order: Unclear. According to the online documentation, it is up to the bank what order they post the transactions.
- Bankrate Rating: 3 stars
*Overdraft policy will be changing in June 2010.
**Online Bill Pay is free for higher level checking accounts
Local Banks
LibertyBank*
- Account: Completely Free
- Amount to Open: $50
- Monthly Fees: None
- Overdraft Protection: Can Opt Out
- Overdraft Fee: $32 each
- NSF Fee: $32 each, maximum 4 per day
- Extended Overdraft: None noted on fee schedule
- Stop Payment Fee: $30
- Cashier’s Check Fee: $6
- ATM Fees: None
- Online Bill Pay: Free, as long as you make 1 payment per billing cycle. Otherwise, $3 per month.
- Transaction Post Order: Unknown
- Bankrate Rating: 1 Star
*There are lots of Liberty Banks in the US. This is LibertyBank (one word) in Oregon.
PremierWest Bank
- Account: Free Checking
- Amount to Open: $100
- Monthly Fees: None
- Overdraft Protection: Required
- Overdraft Fee: $29 (up to $203/day)
- NSF Fee: $29
- Extended Overdraft Fee: None
- Stop Payment Fee: $30
- Cashier’s Check Fee: $6
- ATM Fees: $1.50 at non-PRWT ATMs
- Online Bill Pay: Free
- Transaction Post Order: Unknown
- Bankrate Rating: 2 Stars
South Valley Bank and Trust
- Account: Free Checking
- Amount to Open: $100
- Monthly Fees: None
- Overdraft Protection: Not required
- Overdraft Fee: If an account is overdrawn for 5 consecutive days, a charge will be assessed retroactive to the first day of the overdraft, continuing until the overdraft is cleared. The amount of the charge will be based on the overdrawn balance of the account. (Overdraft charge is $5 if your overdraft is $25-$5000. Rates go up from there)
- NSF Fee: $25 per item up to $125 per day
- Extended Overdraft Fee: See overdraft fee
- Stop Payment Fee: $20
- Cashier’s Check Fee: $4
- ATM Fees: No fees listed on their fee schedule
- Online Bill Pay: Free
- Transaction Post Order: Transactions are posted manually each morning. Per the customer service rep: If you have two $50 transactions & a $300 transaction, and you only have $100 in your account, they would post the two $50 transactions and call you about the $300 transaction. Usually they give you until noon to make a deposit, so they can clear the transaction. How’s that for customer service?
- Bankrate Rating: 4 Stars
Credit Union
Rogue Federal Credit Union
- Account: Regular Checking
- Amount to Open: $30 CU Membership Fee
- Monthly Fees: $10 Waived if you meet one of the following:
- Member for more than 10 years
- $500 or more in combined deposit and loan balances
- Active checking account w/ direct deposit and eStatements
- Active Loan
- Under the age of 25
- Portfolio with Investment and Insurance Services
- Overdraft Protection: Unknown if it’s required or not
- Overdraft Fee: $25
- NSF Fee: $25
- Extended Overdraft Fee: None
- Stop Payment Fee: Unknown
- Cashier’s Check Fee: None
- ATM Fees: None
- Online Bill Pay: Free
- Transaction Post Order: In the order they come in.
- Bankrate Rating: 1 Star
RFCU does not have an official fee schedule, so it’s hard to know if there are fees for stop payments and ATMS. The customer service rep told me the only fee to speak of was the overdraft/NSF fee.
Online Banks
FNBO Direct
- Account: Online BillPay
- Amount to Open: No minimum (must have FNBO Direct Savings Acct.)
- Monthly Fees: None
- Overdraft Protection: Unknown if it’s a requirement
- Overdraft Fee: $30 (maximum 6 per day)
- NSF Fee: $30 (maximum 6 per day)
- Daily Overdraft Fee: $3
- Stop Payment Fee: $30
- Cashier’s Check Fee: Not available
- ATM Fees: Non-Circle One Branded ATMs: $2.50/transaction; $1.50 Balance Inquiry
- Online Bill Pay: Free
- Transaction Post Order: Unknown
- Bankrate Rating: Unknown. There were too many First National Banks to narrow it down to the correct bank.
HSBC Direct
- Account: Online Payment Account
- Amount to Open: $1
- Monthly Fees: None
- Overdraft Protection: None
- Overdraft Fee: $35
- NSF Fee: $35
- Extended Overdraft Fee: None
- Stop Payment Fee: $15
- Cashier’s Check Fee: Service Not Available
- ATM Fees: None. Pluse HSBC Direct reimburses fees charged by non-HSBC ATMS (up to 3 per month)
- Online Bill Pay: Free
- Transaction Post Order: Highest dollar amount to lowest.
- Bankrate Rating: 3 Stars
ING Direct
- Account: Electric Orange
- Amount to Open: Must have an Orange Savings Account ($1 required to open the savings account)
- Monthly Fees: None
- Overdraft Protection: Mandatory enrollment in overdraft line of credit
- Overdraft Fee: None, except the interest on the line of credit.
- NSF Fee: None, because the line of credit is used.
- Extended Overdraft Fee: None
- Stop Payment Fee: $25
- Cashier’s Check Fee: Service Not Available
- ATM Fees: 2% of the transaction if it’s foreign currency
- Online Bill Pay: Free
- Transaction Post Order: Complicated
- First, Wire Transfers & Overnight Checks
- Next, Person2Person checks & electronic transfers, highest dollar amount to lowest.
- Finally, scheduled Bill Pay items, highest dollar amount to lowest. HOWEVER, if a high dollar amount doesn’t clear, they will process the next highest and then the next, so all the lower payments will clear, if there’s enough money.
- Example: You have $1300 in your account. You’ve scheduled payments for $1000, $500, and $250. The $1000 payment will clear first. The $500 payment won’t clear. But then the $250 payment WILL clear.
My Analysis of the Bank Fees
The big banks charge the highest fees. There’s no way around it. Though there are promises of changes in policy coming, I’m looking to switch banks now, and I don’t want to wait for the change.
Our local credit union charged the lowest fees, which surprised me, because I remembered the fees being much higher. But we’re in a better financial position than we were in when I left the credit union several years ago, so it’s quite possible I remembered incorrectly and the fees just seemed higher then. However, I’m not comfortable with such a low safe and sound rating, so I don’t really want to bank there.
South Valley Bank & Trust really impressed me. I’m grateful that Robert, one of my readers, pointed me in that direction. It has a good rating, and I was blown away when the customer service rep told me that if you overdraw your account, they call you and give you a chance to make a deposit to cover the transaction! That would have saved me a HUGE headache when my escrow refund check bounced!
And of the online banks, ING Direct has the best fee structure. I already have an ING Electric Orange account, which I love, and I think I’ll start using it a little bit more. ING also pays interest on even the smallest accounts, so that’s a bonus, too.
But, I like having a local account as well, so I believe I’ll be moving my money to South Valley Bank & Trust in the near future.
Photo by BaronBrian.
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{ 18 comments… read them below or add one }
I tried to use Ing as my primary checking account, but I hated it. After two months, I switched to another bank that allows me to use paper checks. I write maybe 10 paper checks/year, but when I need to write a paper check, I really need to. (The particular sticking point for me was a magazine subscription.)
Lynnae – the one time I overdrafted my account at Wells Fargo, they listed the payments from highest to lowest on that day. (A laptop charge, an ATM withdrawal, and a fast food meal, in that order. The most expensive fast food meal I’ve ever eaten, I should add. I haven’t overdrafted since.) This was in October of 2006, however, so I don’t know if their policy has changed since. Looking at my general transactions, on 9/24/09, the charges posted in the order they were made: recurring savings transfer, credit card payment, electronic debit by my university, and a breakfast purchase. ($50, $100, $50, $3.23). I think with WF it depends on whether or not you’ve overdrafted – if you have, they’re going to hose you in the manner above.
The reason that your credit union is rated lower than the other banks is that it is regulated by a different organization. While bank fall under the FDIC, all credit unions are covered by a similar organization called NCUA. The two are very similar, but credit unions are NOT BANKS, nor do they wish to be. I worked for a credit union for 10 years, and still bank with my local credit union 15 years after leaving their employment. I would NEVER use a bank. Your local credit union can provide you with all the same services and are insured just like a bank, but offer you not only lower fees, but pride themselves on being more of a one on one financial institution, where in most banks you are nothing more than an account number! Please check your local credit union again and I am sure that you will be most impressed, I know I am!
I’m really surprised that your local credit union came up as 1 star. I’ve banked with my credit union for over 25 years, and it came up as a 4 star rating when I looked it up. We have numerous credit unions in our small town; surely, you have a lot of other choices in credit unions in the large city by where you live!
Thanks for the shout out!
I have been very impressed with South Valley Bank and their excellent service. My daughter overdrew her account because she wasn’t keeping track of her debit card use. My wife was also on the account as daughter was not 18 when the account was opened. They called my wife when it happened and we were able to cover it, and also take away our daughters debit card for a period time of time to help her learn about real world responsibilities!
All in all I have nothing but great things to say about South Valley Bank. My wife loves their online banking and tells me it has several features that US Bank does not. That is one of the reasons we switched from US Bank. Also, you have to love the four star rating!
I’d be right there with you on the South Valley …. sounds like my local Sterling Savings – very personal touch!
Our checking account is through Charles Schwab and we have been very happy with them. There are no ATM fees, online banking is free, and checks are free. Kiplinger’s rated them the best checking account last year. So I guess I’m not the only one happy with them 8-)
I really enjoyed reading all the different fees. :) I’m a weirdo, I know. I think out of all the big banks, it looks like US Bank is the best. That’s interesting. They are one of our competitors. Good luck with moving your accounts! I know Kacie just had a great post on how to move money from bank to bank. :)
Thanks for the bank reviews! My daughter in law is being wronged by B of A…..she was very sure she signed up for overdraft protection 4 + years ago since joining that bank..and never had an ISF til this last weekend..thought she had it…come to find out..they never signed her up.. She bounced while paying bills early..postdated checks, and they allowed them to go thru..causing her to bounce only a few hours before her autodeposit check posted..so they are charging her all kinds of overdraft fees..it’s terrible. One person told her they would reverse charges..they didn’t. I told her to go into a local branch, and if they don’t resolve it for her..a GOOD STANDING customer..to ditch them. Sounds like South Valley may have a few new customers!
This has been an interesting comparison, both from the consumer and credit union perspective. When you really look at it, you can see the differences between credit unions and banks. I am actually an employee of Rogue Federal Credit Union and wanted to clarify a few things in the Rogue analysis, if you will indulge me.
• Account: Regular Checking
• Amount to Open: $30 CU Membership Fee
o Comment: $5 Account Opening Fee and the required initial $25 deposit into a savings account that represents your ownership share in the credit union. If you were to ever close your membership the $25 goes right back to you!
• Monthly Fees: $10 Waived if you meet one of the following:
o Member for more than 10 years
o $500 or more in combined deposit and loan balances
o Active checking account w/ direct deposit and eStatements
o Active Loan
o Under the age of 25
o Portfolio with Investment and Insurance Services
• Overdraft Protection: Unknown if it’s required or not
o Comment: We have a great overdraft protection program, which you can choose to participate in—but it’s not required. Every member that qualifies for a checking account also qualifies for a Personal Line of Credit in the amount of $500. If you overdraw your account the money comes directly from this line of credit – you are charged NO FEE for this, all you pay is the interest you accrue on your outstanding balance on your line of credit.
• Overdraft Fee: $25
o Comment: We do not have an overdraft fee, only NSF fees.
• NSF Fee: $25
o Comment: You are only charged an NSF fee if you have insufficient funds in your checking and no available balances to transfer from your overdraft protection sources.
• Extended Overdraft Fee: None
• Stop Payment Fee: Unknown
o Comment: $20 – If you have more than $30,000 in aggregate loan and deposit balances this fee is waived.
• Cashier’s Check Fee: None
o Comment: You receive one free money order and cashiers check per day
• ATM Fees: None
• Online Bill Pay: Free
• Transaction Post Order: In the order they come in.
• Bankrate Rating: 1 Star
o Comment: As of June 30, 2009, Bankrate.com changed the rating for Rogue to be 2 Stars. According to their site, 2 stars indicates “below peer group.” I think it is important to note that the predictive indicator from Bankrate.com is listing a “neutral” position. In other words, Bankrate.com does not believe that their rating is predictive of Rogue’s stability one way or the other.
o Bankrate has chosen to rate Rogue’s Capital Adequacy at a 1 star level, but notes that it is 8.36%/9.36%. According to credit union’s financial regulator the NCUA, (which Bankrate refers to), a credit union that is “Well Capitalized” shows a Capital Adequacy level above 7.0%. Rogue’s Capital Adequacy certainly falls into (and above) the well capitalized category.
In addition to the above analysis you also need to remember that with credit unions, you are a member/owner and have voting privileges and a say of how your credit union is run.
No matter which choice you make for your financial needs, consider supporting one of the LOCAL banks or credit unions with your business. In a time, like we’re in today, the ability for you to sit down with the Sr. Management of your financial institution is invaluable. You get that ability with a LOCAL bank or credit union. There are lots of good ones out there so please choose the one that’s best for you.
Jim, thank you so much for weighing in! You’ve given me a lot more detail in your comment than I was given in the branch, and that is very helpful. And thanks for the update on Bankrate’s ratings, too. RVCU came up as one star when I did a search, but I’m sure you would have more reliable info than I would.
When I get a chance, I will edit my post to reflect the additional information you’ve given me. And you’re absolutely right. As I’ve learned (the hard way), local is the way to go!
Counting the days till I’m done with #th/#rd Bank for ever. I’ve lost the price of a house down payment this year in overdraft fees. I’ve joined a local credit union and once my direct deposit switch goes into effect I’m done with the big huge over charging bank!
Thanks for the list, very useful.
It seems the banks are starting to budge on their overdraft policies. I think people have been raising enough fuss that they couldn’t ignore the issue any longer.
Banks use all sorts of schemes to maximize overdrafts.
Here is an idea. Don’t overdraft your account. Keep a check register. Be responsible. Just a thought.
Here’s a better idea. Be reasonable and be a responsible reputable business and don’t jump on every chance you get to screw your customers.
I forgot to make an online transfer. Put it in my quicken and completely forgot to make the transfer two days before christmas after doing some last minute shopping. Overdraft fees totaling 435 dollars. Called the bank they offered to split the difference. I have my mortgage there as well and another account. I have over 10k in other acccounts there. 7 years never had an overdaft or a late payment. They’re history. They will lose 10 times that amount now. I’m moving it all.
I have a capital One Chkg acct that has been overdrawn. The question i have is between an available balance and current balance. I used a debit mastercard atm at a local store and at that time my available balance was $1. I charged $5 for the store and the credit transaction was approved. I simply dont understand how banks can approve this credit card transaction knowing the available balance is $1. i figured if there was not enough balance that i would be DECLINED. i DO NOT HAVE OVERDRAFT PROTECTION WITH THIS BANK. HELP?
Fantastic! I was just gonna do what u did! I have just had it with B of A and their stupid bull shoes. The last straw was when I went into my local branch & asked for a activity history print out and they said “oh, we don’t do that anymore”
you’ll have to call our 800#, I ask well exalty what do u people do in big building? They said well cash checks & take deposits! What?!
I said well the frickin ATM u have outside can do that! No need to even waste money on this big building ur workin in!!! Come on! And not to mention the “hold” they have to put on a check ur tryin to deposit to avoid overdraft fees, by the time the hold is up, 1,2,er 3 fees later u pay! And if u happened to be overdrafted don’t hand them a check u wanted to cash, they’ll keep it, and u get NO cash back! And worst yet if ur a platinum card holder from waayyy back when like I “used to be” before my divorce $100.000
or more in an acct, u can overdraft till the cows come home! Please! That was then, not now! I don’t have money like back then & they will not take me off the platinum card!!!!!!
That is unfortunate for all of you that you are having issues with your “BIG” banks. But like the original post mentioned, you may want to look at moving your money into a smaller local financial institution. Often times Credit Unions offer overdraft protection for your checking account automatically, with no monthly fees. At Rogue Federal Credit Union, anyone with a checking account is automatically approved for a $500 overdraft line of credit. This will eliminate those small accidental overdrafts, and most importantly eliminate all the fees you would otherwise incur. Support Local, and save yourself all this heartache.