Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Ally eliminating overdraft fees
Old 06-02-2021, 08:36 AM   #1
Thinks s/he gets paid by the post
 
Join Date: Mar 2012
Posts: 2,273
Ally eliminating overdraft fees

Apparently Ms. Warren unloading on Jamie Dimon last week made an impression on Ally. Funny how they make it sound as if they've just come up with this incredible idea on their own.



Quote:
we're saying 'so long' to overdraft fees.

njhowie, doing right by you has always been our top priority, even when it means challenging the status quo. That’s why during the COVID-19 pandemic, we proactively waived overdraft fees to do our part in helping our customers.

After some learning and reflection, we’ve decided it’s time to do away with overdraft fees once and for all. It makes sense and it’s just the right thing to do.

Beginning immediately, overdraft fees will be eliminated. For now we’ll be reimbursing them, but in a few weeks, they’ll be removed entirely. It’s just one more step in the right direction of always putting our customers first. Because we’re not just here to do things the way they’ve always been done — we’re here to do it right.
njhowie is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 06-02-2021, 08:40 AM   #2
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: May 2013
Posts: 5,183
How about folks not go negative? That is a great way to avoid overdraft fees.
__________________
Retired in 2014 at 40 Years Old
ExFlyBoy5 is online now   Reply With Quote
Old 06-02-2021, 08:46 AM   #3
Thinks s/he gets paid by the post
euro's Avatar
 
Join Date: Oct 2015
Posts: 1,620
Quote:
Originally Posted by ExFlyBoy5 View Post
How about folks not go negative? That is a great way to avoid overdraft fees.
This. Of the many insidious fees that banks can collect, at least the overdraft fee is entirely avoidable with some minimal effort. That said, it's fine with me to get rid of them.
euro is offline   Reply With Quote
Old 06-02-2021, 09:30 AM   #4
Thinks s/he gets paid by the post
 
Join Date: Mar 2012
Posts: 2,273
Quote:
Originally Posted by ExFlyBoy5 View Post
How about folks not go negative? That is a great way to avoid overdraft fees.
Although this is a FIRE forum, at least acknowledge that there are many folks who are not as financially well off or that every now and then even those who are financially strong cut things close to the edge with their checking account and maybe an unexpected charge comes through.

I suspect there are more than a few folks around here who try to keep their checking accounts at a relatively low balance - maybe a bit more than anticipated expenses for the next month or two. Personally, I keep my balance at $2500 and as bills are paid, I bring it back up to $2500 transferring additional money in, and in advance if I know a larger payment is coming due. There were a couple times when I received alerts that my balance was going negative and to transfer money in immediately.

Why keep the checking balance "low"? 1. The money isn't working for me and earning any interest in the checking account. 2. If someone happened to gain access or fraudulently withdraw money from the account somehow, they're only going to get $2500 at most. Sure, if money is fraudulently taken from your account the bank protects you. However, it's not an immediate process where you say the money was stolen and they give you a credit for it 5 minutes later.
njhowie is offline   Reply With Quote
Old 06-02-2021, 09:36 AM   #5
Moderator
Aerides's Avatar
 
Join Date: Nov 2015
Posts: 8,652
I can remember once in the past few years that I almost had an overdraft by accident, and rushed to do a phone transfer to avoid it. Stuff happens!
Aerides is offline   Reply With Quote
Old 06-02-2021, 09:55 AM   #6
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
harley's Avatar
 
Join Date: May 2008
Location: No fixed abode
Posts: 8,421
I like eliminating overdraft fees, but I wouldn't have minded if they had just lowered the cost to something reasonably close to what it costs the bank to process them. $5, $10, whatever. But the average $39 fee often causes a cascade of other problems. At least that's how I remember it from my youth, back when I was living hand to mouth. A fee shouldn't be a punishment, it should be a passing on of costs. So I say, good for Ally.
__________________
"Good judgment comes from experience. Experience comes from bad judgement." - Anonymous (not Will Rogers or Sam Clemens)
DW and I - FIREd at 50 (7/06), living off assets
harley is offline   Reply With Quote
Old 06-02-2021, 10:34 AM   #7
Thinks s/he gets paid by the post
 
Join Date: Aug 2010
Location: Back woods of Fennario
Posts: 1,113
I do all my banking at Ally these days. I am asking myself: "Is this actionable and if so, how?"

Psychologically lower my personal minimum balance? I'm still chewing on this....
__________________
"Time wounds all heels...." - Groucho Marx
LRDave is offline   Reply With Quote
Old 06-02-2021, 11:11 AM   #8
Thinks s/he gets paid by the post
gauss's Avatar
 
Join Date: Aug 2011
Posts: 3,018
Perhaps a compromise between the 'no overdraft fees' and the 'keep the fees in place' sides, my Chase Sapphire checking account has the following terms:

Quote:
Fewer overdraft fees1

No fees on the first four overdrafts within the
current and prior 12 statement periods.
gauss is offline   Reply With Quote
Old 06-02-2021, 01:36 PM   #9
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: May 2013
Posts: 5,183
Quote:
Originally Posted by njhowie View Post
Although this is a FIRE forum, at least acknowledge that there are many folks who are not as financially well off or that every now and then even those who are financially strong cut things close to the edge with their checking account and maybe an unexpected charge comes through.

I suspect there are more than a few folks around here who try to keep their checking accounts at a relatively low balance - maybe a bit more than anticipated expenses for the next month or two. Personally, I keep my balance at $2500 and as bills are paid, I bring it back up to $2500 transferring additional money in, and in advance if I know a larger payment is coming due. There were a couple times when I received alerts that my balance was going negative and to transfer money in immediately.

Why keep the checking balance "low"? 1. The money isn't working for me and earning any interest in the checking account. 2. If someone happened to gain access or fraudulently withdraw money from the account somehow, they're only going to get $2500 at most. Sure, if money is fraudulently taken from your account the bank protects you. However, it's not an immediate process where you say the money was stolen and they give you a credit for it 5 minutes later.
While not arguing with you per se, I don't see the fuss over O/D fees. I maintain a very low checking account balance and have had a O/D fee in the last couple of years. A bank's mission is to make money and O/D fees is a way to do that. When you sign up for the service, you agree to the terms. Folks have to learn personal responsibility some time.
__________________
Retired in 2014 at 40 Years Old
ExFlyBoy5 is online now   Reply With Quote
Old 06-02-2021, 02:14 PM   #10
Thinks s/he gets paid by the post
 
Join Date: Mar 2012
Posts: 2,273
Quote:
Originally Posted by ExFlyBoy5 View Post
While not arguing with you per se, I don't see the fuss over O/D fees. I maintain a very low checking account balance and have had a O/D fee in the last couple of years. A bank's mission is to make money and O/D fees is a way to do that. When you sign up for the service, you agree to the terms. Folks have to learn personal responsibility some time.
The points you're presenting are not being argued. It's the situation, as explained by Ms. Warren in the video.

Ally got the message. JPM, as signified by Mr. Dimon's answers, did not.
njhowie is offline   Reply With Quote
Old 06-02-2021, 02:33 PM   #11
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: May 2013
Posts: 5,183
Quote:
Originally Posted by njhowie View Post
The points you're presenting are not being argued. It's the situation, as explained by Ms. Warren in the video.

Ally got the message. JPM, as signified by Mr. Dimon's answers, did not.
Got it. I admit I didn't watch the video. I have little tolerance for the back and forth yelling over each other that is so prevalent in the news. While this may not be the case, I'm not taking any chances.
__________________
Retired in 2014 at 40 Years Old
ExFlyBoy5 is online now   Reply With Quote
Old 06-02-2021, 02:59 PM   #12
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jan 2018
Location: Tampa
Posts: 8,429
Always good to know, even though it won't affect me at Ally.
__________________
TGIM
Dtail is online now   Reply With Quote
Old 06-02-2021, 03:10 PM   #13
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Aug 2004
Location: Laurel, MD
Posts: 5,978
Quote:
Originally Posted by harley View Post
I like eliminating overdraft fees, but I wouldn't have minded if they had just lowered the cost to something reasonably close to what it costs the bank to process them. $5, $10, whatever. But the average $39 fee often causes a cascade of other problems. At least that's how I remember it from my youth, back when I was living hand to mouth. A fee shouldn't be a punishment, it should be a passing on of costs. So I say, good for Ally.


I agree 100%. In fact I think itís better because it does not create a moral hazard. I wouldnít mind paying a service fee if they paid the check. I think my bank charged $20 bucks or so for overdraft service to xfer funds from savings or credit card.
__________________
...with no reasonable expectation for ER, I'm just here auditing the AP class.Retired 8/1/15.
jazz4cash is offline   Reply With Quote
Old 06-02-2021, 03:41 PM   #14
Thinks s/he gets paid by the post
 
Join Date: Jan 2013
Posts: 2,762
Gotcha bank fees are a nice revenue source. I paid off a couple of rental mortgages at Chase last year. The requirement for free checking was to have a minimum balance or a mortgage. For years I met both criteria. I slipped under the minimum the next month and got hit with a $25 fee for the checking account. Pay a FEE for a checking account? I don't think so. I added enough to take the account well over the minimum and messaged them to apologize, pointed out the increase in the balance, and asked them to waive the fee. Which they did.
Another Reader is online now   Reply With Quote
Old 06-02-2021, 03:52 PM   #15
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Sunset's Avatar
 
Join Date: Jul 2014
Location: Spending the Kids Inheritance and living in Chicago
Posts: 11,720
I always turned off overdraft , as figured if I was spending more than I had, that was when I should stop.

Now, I'll turn on the Ally overdraft, and spend some of their money too
__________________
Fortune favors the prepared mind. ... Louis Pasteur
Sunset is offline   Reply With Quote
Old 06-02-2021, 04:25 PM   #16
Recycles dryer sheets
 
Join Date: May 2019
Posts: 257
Banks will get their money from other fees. I had to stop payment on a check last week that was lost in the mail. Cost me $20 to have the customer service rep push a button. They could literally put that option on the online banking app so I could do it myself. Why don’t they - because then they couldn’t charge me $20. If my bank removes overdraft fees I’ll bet stop payments go to $30.
JRon is offline   Reply With Quote
Old 06-02-2021, 04:31 PM   #17
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Sunset's Avatar
 
Join Date: Jul 2014
Location: Spending the Kids Inheritance and living in Chicago
Posts: 11,720
Quote:
Originally Posted by JRon View Post
Banks will get their money from other fees. I had to stop payment on a check last week that was lost in the mail. Cost me $20 to have the customer service rep push a button. They could literally put that option on the online banking app so I could do it myself. Why donít they - because then they couldnít charge me $20. If my bank removes overdraft fees Iíll bet stop payments go to $30.
Or your interest rate drops 25%
__________________
Fortune favors the prepared mind. ... Louis Pasteur
Sunset is offline   Reply With Quote
Old 06-02-2021, 07:31 PM   #18
Thinks s/he gets paid by the post
 
Join Date: Nov 2015
Posts: 2,206
In all my life I never has an OD. Not that I had piles of money, I was just responsible. Another instance where people aren't held accountable for their actions. Maybe I overlooked it, but will Ally continue to pay checks on accounts or will they return checks as NSF?
bobandsherry is offline   Reply With Quote
Old 06-02-2021, 09:23 PM   #19
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Sep 2005
Location: Northern IL
Posts: 23,391
Quote:
Originally Posted by ExFlyBoy5 View Post
Got it. I admit I didn't watch the video. I have little tolerance for the back and forth yelling over each other that is so prevalent in the news. While this may not be the case, I'm not taking any chances.
You were wise. I got sucked into the first minute, and there was lots of that yelling over each other.

Where do politicians get off telling a business what business decisions they should be making (unless we are talking illegal and/or trade restriction acts)?

It's up to JPM/Chase to set their Over-draft policy, and consumers either accept it or go somewhere else. The bank isn't forcing people to write bad checks.

Where does this end? No more late fees on your mortgage, because you know, some "big bad capitalist" made money on those late fees? That guy should have countered about all the taxes that are charged people. In many cases, the sales taxes alone are more than the profit the company makes on that product.

Maybe Ms Warren should have directed that rant to her constituents, maybe offer up some education to them about how to balance a check book, or how to look for places that have cheap overdraft protection?

-ERD50
ERD50 is online now   Reply With Quote
Old 06-02-2021, 09:58 PM   #20
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Chuckanut's Avatar
 
Join Date: Aug 2011
Location: West of the Mississippi
Posts: 12,464
I am not a fan of the big banks. And as a senior, I get free checking from one, though they are nibbling at the edges of it. Their loan rates are high and their savings rates are in the dumps. But, they are conveniently located and I don't keep much money in them. I rarely OD my account. Their fee schedule has put the fear of fees into me.

The YouTube clip showed me why I don't' want either of them controlling any aspect of my life. At best, I am collateral damage on their road to power and success.
__________________
The worst decisions are usually made in times of anger and impatience.
Chuckanut is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Ally 6 transaction limit fees returning to Ally MJ FIRE and Money 15 07-14-2020 03:07 PM
Fees! Fees! Thoughts for me... Floridatennisplayer FIRE and Money 37 11-26-2017 01:35 PM
Downside of overdraft protection? smjsl FIRE and Money 21 05-22-2010 06:21 PM
Anybody fully understand overdraft policies ? Delawaredave5 FIRE and Money 34 03-10-2010 11:18 AM

» Quick Links

 
All times are GMT -6. The time now is 01:42 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2021, vBulletin Solutions, Inc.