Inactivity fees at banks

Has anybody else been burned on this scam?

I got statement today and a checking account got charged $7 for dormant checking.

I called and asked what is this all about. Apparently, now with new owners of the CU, if no money moves in or out of this account in a whopping 6 months they start charging you a $7 fee per month. I asked if I withdraw all the money would that be an activity? Couldn't do that over phone. How about if I move all the money to savings and leave a dollar in the checking for you guys to take your $7 out every month? Their story is it cost them money to manage inactivity. That must cost more than managing activity. We are going to find out, as I figure to get $7 worth of activity by calling and moving money every month from customer service. I bet customer service actually cost something.

I have an account that I never use. Opened it for a specific reason which doesn’t matter. If no activity in 12 months, they charge me $5.00 per month. Clearly stated in the rules when I opened the account.

So, every July 1 (or their abouts) I put $20.00 in the account. No service fees. Easy peasy. And I’m stashing away $20.00 per year for when I get old.

Not a problem for me.

Never heard of it but it doesn't surprise me. Most every new bldg in the city is a bank.
I opened an account so I wouldn't be charged $5 to cash a check from their customer.

I have a very small savings account at a local bank that I opened just to use the coin counter without a fee. I don't use it because it's a SAVINGS ACCOUNT. They took a $10 no activity fee. I asked point blank why they were stealing money out of my account, it's a savings account and I'm saving it. No good answer, it's policy.

At another bank my daughter had a savings account since she was a kid. It also had my wife's name on it. My wife went to close it since we haven't used that bank for many years. There was no record of the account. The bank basically stole the money and closed it with no notification to us. There should have been about $300 plus 25 years of interest.

Check the website of the unclaimed property division of your state treasurer's office. That is where all properties are supposed to be turned into when the owner cannot be found. It is worth a try. Should be done for every state you have lived in.

I deal with three banks and one of them has had an activity fee for a very long time. Seeing as I keep a checking account in that bank I don't worry about it. My credit union I believe also has one but i keep that acct pretty active. When I first found out about this years ago I was shocked but am used to it now

My bank did it to me years ago. It was $2.00 after a year's inactivity back then. I called and complained, told them they should have warned me before charging me the fee. They refunded the fee. I moved the money to another account and closed the inactive one.

Do they mail you a statement every month? FDIC insurance.

I have a bank that has that inactivity fee. I don't understand how they figure it cost them more for an inactive account, esp. with a few thousand in it than for a active account with only a small amount of money changing hands frequently. Its free checking so they are not charging for transactions. Makes no sense to me.
Also have one that charges a fee anytime my balance goes less than $600. I don't like that but do understand it from their point and makes more sense than the inactivity thing.

Start taking $$$ >$$$$ out and keep it for a month or two or more. . . the bank will loose THEIR interest % on YOUR $$$. It may just change their minds when / if you tell them . . . it works, . . . I know :-)

They should charge an inactivity fee a the old age home.

Yes they do with two other accounts on it. No it was FDIC, now it is NCUA. I'm sure the 6 to7% they charge to loan my money out covers the cost.

Ones even more inactive. It's called a C.D. They pay extra for the inactivity.

I got dinged a couple bucks a month on a checking acct years ago.

You just got to figure out how to manipulate the system; I use 3 banks for a reason and it not because I have a lot of money in them.

i have a savings acct with this fee. handle it about the same as wiss miss does. always toss all pocket change in a jar/jars, and deposit it in that acct 2x a year. i haven't spent a single coin for years, and that pocket change can really count up over time.

Here's one for you: wife and I opened a new joint checking at Wells Fargo. Very little use, and after a couple of months I decided to check the balance using an ATM at the grocery store. Mind you, I didn't withdraw a dime.
Next statement shows a $2.50 fee for that inquiry!
I closed the account the next day.

CASH is still king! If you have it on hand for a purchase, all you have to do is ASK if an item will be less expensive then! . . . you MAY save $$ . . . on the purchase whether big or small, and WILL save $$ on bank checks and CC! . . . think about it :-)

Yep just got a letter from Wells Fargo on a checking account we have with them. I think it would just easier closing the account or accounts we have with them. I wonder what they would say.?

They'll probably ask why. Tell 'em! :-)

Banks don’t want to lend now. Ask any commercial builder. Almost impossible to get funding for a commercial project.

Dirt, it's pretty common practice

I had better check on a n account I have fir my nga trust I have not used in a few years

. . . aka "posthole" ?

Unfortunately for these guys, I ain't my senile mom.

I believe that banks are going start going belly up very soon. They seem to be operating scared.
Word on the street is that they are cancelling bank accounts for silver/gold/coin dealer shops for some reason. Not just the owners, but their spouses and children. Something about the cash flow inherent to that kind of business. They take significantly large cash withdrawals fairly often as a part of how they do business.
I'm thinking that banks don't like lots of money withdrawn all at once. It hurts their money-in/money-out ratio.
These inactivity fees may be a way to keep them from going completely upside down.

Well than they can park it in a Federal Reserve account and make 5.5%. They are paying nothing to borrow it from me.

Banks are ^&%* joke with their fees anymore. I actually get charged for depositing checks in my business checking account.... (This word is unacceptable on Trapperman). I would close the account but it is the only bank in my little town.

Money dont do you any good sitting in a bank-Spend it up.

Yes around here at 6 months they are calling you to write a check or whatever not uncommon

This is how stupid this is. I can call them tomorrow and move everything, but $1 into a 14 month CD paying 5.35%. Then, I don't have to do anything for the magical time 14 months on the CD, but move 50 cent from checking ( I don't believe there is a minimum amount in checking for free checking) to savings in six months and back again six months by phone to avoid any inactivity fees. I'm starting think banks are retarded.

Yep you have that right but it’s probably some stupid government regulations

I think its a grand idea and I am thinking of implementing that in my business ..... If someone has not had their boat fixed or serviced in 6 month I'll send them a invoice for a couple of hundred bucks..... A great way of having return customers on the books me thinks.

"Dormant Checking (6 months) .........................$7.00/mo.
Dormant Membership Fee (inactive
single service member for 6 or more months) .............. $35.00"

After searching through the new owners of this bank's website. There was a lot of Free mentioned on the information for their accounts. I final found this at the bottom of some page down the line under" 2023 Annual Fee Disclosure. "

"Paper Statement Fee (checking accounts only).....$3.50/mo." This is a new one. I'm not sure what means? I haven't been getting charged for paper. I guess I am going to have to sign up for estatements from 4000 miles away to dodge this one or close that account.

Dirt, all of my banks now charge a fee if I want a paper statement mailed or don't even offer one(email only).
I wish they still mailed a monthly statement. I don't do banking via email. Or trust it. Without sending me a monthly report it's easier for them to sneak in another hidden fee

I got one bank that forces me to take estatements. These guys apparently are only going to charge only for checking account paper statements?

Dirt: are you talking about Global/AKUSA ?

No. That problem, I have also. I think I have a plan there. They are going to lose all my money in October. Every time somebody buys out one of my banks, things always get worse.

That's for sure !

I moved almost ALL of mine from Global after the merger.

I used to keep a couple of hundred bucks in the local bank where I Deer hunt just for emergency's, Then they started that "inactivity" fee crap, so I would add or take out dollar every time I was down there, till I got tired of it and just closed it. Bank went bust less than 6 months later. LOL