$5 ATM Fees Coming?

Next time you go to the ATM you could be paying $5 or more just to withdrawal cash. This is completely ridiculous, but I’m not surprised banks are trying to squeeze more cash from not-yet-recovered Americans.

CNN reports:

Chase, for example, is testing out $5 fees for non-customers. That means if you stumble upon a Chase on your way to dinner and decide to take out 20 bucks, you'll pay a 25% fee. And that doesn't even include what your own bank charges you for going out of network, which is typically around $3.

JP Morgan Chase (JPM, Fortune 500) is currently testing the $5 ATM fee in Illinois and a $4 ATM fee in Texas -- both for non-customers who use its ATMs -- to see if they bring in enough revenue to introduce nationwide, according to sources familiar with the tests. A Chase spokesman declined to comment.

Out of the bank's network of 16,000 ATMs, more than 20% -- or about 3,600 -- are located in these two states. Chase spent an estimated $400 million to build the entire network and pays $200 million a year to run it. So the bank is making non-customers pay a significant amount for the convenience of using this large network.

Meanwhile, HSBC Bank USA (HBC) this month started charging all non-customers a $3 fee for using its ATMs, saying that this pricing is more competitive. Previously, about 60% of its ATMs charged a $3 fee for non-customers, while the remaining 40% charged either $1.75 or $2.50.

Continue reading at CNN.com…

Bank Fee Whac-a-Mole: New Charges Hit Accounts

Since the CARD act, and new consumer protection laws have been put in to place, you may have noticed some mysterious new fees appearing on your bank statement. You are not alone, almost every major financial institution has added new fees to make up for losses in revenue.

To assist consumers, CNN Money.com put t together a bank-by-bank description of the new charges you can expect. You can find an excerpt below or check out the full post here.

"It's like you've got a sinking boat, where you plug one hole and another one springs up," said Curtis Arnold, founder of CreditRatings.com. "You can shut down one egregious fee, but that doesn't mean other fees aren't just going to start popping up elsewhere."

Here's a bank-by-bank look of what to expect.

Bank of America: Just last week, Bank of America said it plans to raise minimum balance requirements over the next 12 months and charge a monthly account fee for customers who can't maintain those balances.

"We currently estimate over time through these and other items we are working on that we will have the ability to offset a substantial majority of the revenue from the various regulatory changes," Bank of America (BAC, Fortune 500) CEO Brian Moynihan said in a presentation to investors last week.

Customers enrolled in the lender's new eBanking checking account will be charged $8.95 per month if they opt to receive paper statements and visit tellers instead of banking online. Since the launch of eBanking in August, nearly half of all new checking accounts fall into this category.

Earlier this year, annual fees ranging from $29 to $99 were applied to a variety of Bank of America credit card accounts.

Continue reading at CNN Money.com…