What Banks Call Free Services Is All Wrong
May 06, 2009
What would you think about a store that advertised "free oxygen" or "free escalator service"? Sounds ridiculous, right? Of course it does, but so do a lot of the services that banks advertise as free. For unsuspecting consumers, the grand claims of banks about their free services they offer may actually seem like a good deal from the bank. Let's set the record straight. Listed below are services that you will see advertised on the websites of many major banks:
- Free first order of checks
- Free ATM withdrawals
- Free online banking
- Free online bill payment
- Free customer service
- Free online application
- Free online statements
- Free online transfers
What Should be Free From a Bank?
All the services listed above are services that you should EXPECT to receive at no additional cost. These freebies do not qualify as great bank deals. Remember, you are giving your hard-earned money to your bank so that the bank can go ahead and make money on their end. It is no gift to customers that they offer basic services for free. We do expect certain fees like wire transfer fees or the fees for the fees for cancelling a check, but we would never expect to be charged for asking a customer service question or checking a balance online. There are opportunistic banks who charge for some of the services we listed above, but that still does not indicate anyone should expect less than free banking services. Using a bank comparision site like MoneyRates.com makes it easy to keep track of what constitutes a good bank deal from false promotion.
Negotiating Bank Fees
Competition is heated for bank deposits. Bank customers have more leverage and bargaining power than they think. Many banks have been known to negotiate fees instead of losing an account. For example, Royal Banks of Missouri was recently approached by a St. Louis customer who had 5 ATM withdrawal fees on her statement. The customer simply asked the bank for a reimbursement and pointed out that another bank down the street from her offered up to 20 free ATM withdrawals a month for free. The response? She got her ATM charges credited back. Negotiating with a bank is possible.
