Springtime Budget-Busters -- Savings Experiment
Midday Market Minute: Average 401k Balance Reaches Record High
Salon's Andrew Leonard takes a look at Bank of America's (NYSE: BAC) recent decision to boost the surcharge non BofA customers will need to pay to use the bank's ATM machines: Instead of paying $2, we -- non BofA customers -- will now have to pay $3 if we choose to use them.Mr. Leonard makes it clear that he isn't a big fan of these charges: "Let's hear it for Iowa, Connecticut, San Francisco and Santa Monica, Calif. Earlier this century, these four states and municipalities attempted to ban ATM surcharges. Sure, you can call that unwarranted interference into the workings of the free market, if you like."
Yeah. That's exactly what I would call it. Why should states interfere with people who want to, out of sheer stupidity, pay $3 to use an ATM machine, when they can get cash back by paying for a 25 cent pack of gum with a debit card at the grocery store?
Of course BofA is greedy. I wrote about its deceptive "Keep The Change" program and, all things considered, I would rather eat glass than bank with them. I think the ATM fees are ridiculous, so I'll tell you what I'm going to do: I'm not going to use Bank of America's ATMs. Simple!
And if enough people do that, maybe the bank will reconsider the fees. Or not. But since $3 is a complete rip-off, I'm well-served by avoiding BofA's ATMs either way. But if people are dumb enough to pay $3-4, why should we stop them?
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Reader Comments (Page 1 of 1)
9-17-2007 @ 3:48PM
DThorn said...
The last time I checked, we still live in a free-market based society. B of A has every right to increase fees. The market will take care of the fairness or unfairness of the rate hike.
Personally, I wouldn't even consider doing anykind of business with B of A. The arrogance of their management keeps me away.
9-17-2007 @ 3:48PM
John said...
I never use a ATM, go to the store and use your debit card and get cash back, wala, no fee! I will purposefully go out of my way to buy a pack of gum and get cash back then pay any ATM fee.
9-18-2007 @ 2:29PM
Triston said...
Hi Zac, Yes, just like interchange fees, the $3 ATM fee is completely unfair. However, unlike interchange, we have a choice in the matter and ATM fees are at least disclosed.
Very timely announcement considering the mortgage debacle we're in right now. The fees should be cost-based. In the meantime, I will do all I can to avoid BofA ATMS.
9-18-2007 @ 7:49PM
Wellsfargo said...
Of corse BAC is after every dollar the can get. Isn't that the reason they avail themselves to all illegals without Social Security Cards to open an account with them, and now $3.00 for their ATM machine. Perhaps for $3000.00 they will let you use their machine even without a bank account anywhere...
12-01-2007 @ 11:41PM
b koelpin said...
If BofA wants to continue it's incredible 100+ yr's of consecutive dividend payouts this will not be the last hike!
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