Avoid bank fees by having good relationship with banker!

"For whosoever hath, to him shall be given, and he shall have more abundance: but whosoever hath not, from him shall be taken away even that he hath." Matthew 13:12

NOTE: When banks stop offering walk in teller access to save on fee assessments, a savings passed on to customers, it could signal employee layoffs...

Many banks will have fee changes in October, and many customers who do not have a lot of money in the bank will get automatic deductions from their accounts. Other banks are merging and competing for customers by offering free money with a few requirement stipulations. The world of banking is changing, and customers should beware and be informed.

Students who set up accounts in high school after five years face fees automatically because of changes in requirements, even though they are still in college. Bank corporate offices send out junk mail-looking announcements stating changes, but often the information is overlooked. These announcements often state that unless a daily balance of $1500 is maintained, an $8.95 charge will be deducted each month. This is not good for students who are already strapped for cash and face huge loan payments when they graduate, even though they may not have jobs.

According to Wikipedia, "The Community Reinvestment Act (CRA, Pub.L. 95-128, title VIII of the Housing and Community Development Act of 1977, 91 Stat. 1147, 12 U.S.C. § 2901 et seq.) is a United States federal law designed to encourage commercial banks and savings associations to help meet the needs of borrowers in all segments of their communities, including low- and moderate-income neighborhoods.[1][2][3] Congress passed the Act in 1977 to reduce discriminatory credit practices against low-income neighborhoods, a practice known as redlining."

Antron Freeman, banking center manager at Bank of America in Marietta, Ga., said the best way to avoid fees is to have a good, working relationship with your neighborhood banker and to examine all bank account options. "The industry itself is large...and it could take years to communicate information to customers, so we do it through the mail in hopes that our customers are looking at their statements and other bank correspondence."

Freeman said bankers are dependent on information from customers to better the system and come up with alternatives that work for both the bank and customers. "We just did a complete overhaul on the types of accounts that we offer, and one of the four accounts that we have may be a good fit," he said.

Banks are also buying out other banks. RBC is being acquired by banking giant PNC which is rumored to be merging with FlagStar Bank. RBC is offering $150 for opening checking accounts through mail out letters and $25 for customer referrals.

IronStone Bank, a division of First Citizens Bank, offers free business checking to accounts with DBA status. Lockheed Federal Credit Union is offering 2%interest on some checking accounts and 2% interest on children's savings accounts.

For more information, contact your local bank.

©2011 Tomi Johnson. All rights reserved.