High account closure fees at large banks in survey
Closing a bank account is not always the end. Not only are there often account closure fees, banks may also re-open the account and assess overdraft costs if a charge comes in after the customer has closed the account. Source for this article: discover by yourself about our website!
Charges for keeping an account or closing one
In recent months, a lot of individuals have been leaving large banks and switching to little ones to avoid charges as much as possible. This has been part of the “Occupy” protest. In the last few months, banks have been starting to charge more fees for things or add fees that did not exist, and a number of people are upset about this.
Another fee, which some “Bank Transfer Day” participants likely ran into, is account closure charges, which many banks charge consumers when they choose to close an account. A recent survey by Consumers Union, according to CBS, found that the 10 largest retail banks in the country all levy them.
Closing an account
The requisite waiting period for the banks varied on top of the amount people were expected to pay in closing costs, according to Consumer Union. Nobody was willing to transfer the <a href="https://personalmoneynetwork.com/installment-loans/">funds</a> the same day. It costs $30 to wire transfer the cash while $10 is needed to pay for a certified check. The waiting period to get the cash to the next account could take as long as two weeks dependent upon the bank you are working with.
The banks in the survey were Bank of America, Wells Fargo, Chase, HSBC, PNC, BB&T, Citibank, SunTrust, US Bank and TD Bank.
The Huffington Post said banks may take four to six weeks to transfer automatic payments to the brand new account. You can get charged overdraft fees on the closed account if the bank receives any automatic payments at that time.
If you close an account within 180 days of opening it, US Bank, HSBC and PNC all charge $25. A $25 fee is charged if you close the account within 90 days of opening at BB&T and Citibank. The biggest fee charged was $55.
A 2005 Bankrate survey shows that banks charged about $25 for account closures within six months of opening, which means the fees have not increased a whole lot. These fees have been there to try and stop consumers from leaving. Banks have always charged the six-months-or-less fee, according to Bankrate.
However, more banks appear to be charging them. According to the Boston Globe, a Pew Charitable Trust survey found that of the same 10 banks in Customers Union's survey, six were charging account closure fees in 2011.
Consumers interested in switching banks should wait at least six months after opening an account and make sure all automatic payments and direct deposits should be moved before closing their old accounts to keep away from the fees.
<a href="http://www.cbsnews.com/8301-505144_162-57443731/at-big-banks-closing-account-could-cost-you/?tag=cbsnewsSectionsArea;cbsnewsSectionsArea.4">CB S</a>
<a href="http://articles.boston.com/2012-02-09/business/31042838_1_account-within-six-months-customers-fees-bank-account">Boston Globe</a>
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