Bank Fees

[bookman51]

Got a statement earlier this week from one of the banks where I have accounts and saw when I transferred about a little more than $2000 from them in an IRA to TIAA, the bank charged me $50. I transferred the amount because they were paying such a miniscule interest rate. So they had my money about five years, and for which I netted $9.09 (and lost money because of inflation). Fortunately, I had not put more in IRAs with this bank.

When I went in yesterday and talked with the manager, I got nowhere. So, I am closing my accounts and going elsewhere---after being a 20-year customer of the bank. Anything else I can do---besides vent here?

 

[jebmke]

Had the bank disclosed their fee structure?

 

[bookman51]

Had the bank disclosed their fee structure?

It has been four or five years since we opened the IRA account, and neither my wife nor I remember. However, since it is a federal requirement, I assume they did---and I cannot prove otherwise. They did show me a rate yesterday, but nothing that I signed that acknowledged the rate. So, the bank cannot prove that they disclosed it to me. The interest rate was terrible by what I can get to get today (well under 1% for a Roth IRA---after four or five years it had accumulated 59.09 in interest). With a $50 fee, it became $9.09 for use of my $2,000 for that time. I can be philosophical and irritated at the same time. If last year's rate of return holds up, I will easily make back the $50 fee this year. However, as a 20-year customer with at times an over six-figure account in the bank, I think they could do better. Got me once, they are not getting me again.

 

[euro]

Just curious: was the fee for the actual transfer, or for withdrawing any amount, or for closing the IRA account?

I don;t blame you for being steamed - however, banks are notorious for this stuff.

 

[UpQuark]

...The interest rate was terrible by what I can get to get today (well under 1% for a Roth IRA---after four or five years it had accumulated 59.09 in interest). With a $50 fee, it became $9.09 for use of my $2,000 for that time. I can be philosophical and irritated at the same time. ....

I sympathize with both those annoyances. I had to pay a $40 fee to move my HSA account away from where my employer had it to Fidelity.

And then my Roth money sat for about 5 years at Fidelity in the core money market position while I was completely clueless about all of it (Roths, money market, investments, etc - totally ignorant of all of it). All those years it could have been growing, wasted, sadly.

 

[jazz4cash]

This happened to me also. I had an IRA savings account with a balance of ~$50.00 that I transferred to Fidelity. I noticed a $15 credit to my Fidelity IRA so I was confused. The credit union charged $35 to close the IRA account.

Now I am wondering if the $35 fee will be considered a distribution. I am > 59.5 so no penalty is involved, but what if I was <59.5. I wonder if they will even bother to send 1099 since the amount is so small.

 

[bookman51]

Just curious: was the fee for the actual transfer, or for withdrawing any amount, or for closing the IRA account?

I don;t blame you for being steamed - however, banks are notorious for this stuff.

All the statement says is "Fee or Service Charge." As I wrote in the original statement, I closed an IRA and the amount transferred to TIAA. What they showed me yesterday is there a $50 fee for an IRA Transfer.

 

[audreyh1]

Yeah, it’s not uncommon for closing and transferring an account. $50 is pretty steep though. I’ve paid $25.

 

[bookman51]

Yeah, it’s not uncommon for closing and transferring an account. $50 is pretty steep though. I’ve paid $25.

The bank I am transferring my accounts to charges $25. And happy to get my business!

 

[RetiredAndLovingIt]

This happened to me also. I had an IRA savings account with a balance of ~$50.00 that I transferred to Fidelity. I noticed a $15 credit to my Fidelity IRA so I was confused. The credit union charged $35 to close the IRA account.

Now I am wondering if the $35 fee will be considered a distribution. I am > 59.5 so no penalty is involved, but what if I was <59.5. I wonder if they will even bother to send 1099 since the amount is so small.

Pretty sure they will. I just got a 1099-R for $25 from Achieva Credit Union for transferring my IRA to Fidelity. Distribution Code 7

 

[Texas Proud]

Banks are being like airlines and charging as many fees as they can... sure, they will lose customers over it but they also will get customers that are mad at other banks that did it to their customers...


It is something that you kinda have to live with... I am mad that I have to pay for my luggage and to get a specific seat but I still want to fly... so I have to pay the fees banks charge unless I meet the requirements to not be charged...

 

[bookman51]

I checked with yet another bank in town and they do not charge an IRA transfer fee. I closed out my account and started to close out the safe deposit box with the first bank. Even though I have six more months on the box rental, they would not prorate a return. So, I am keeping the box until the next payment. After 20 years, the bank is not getting any more of my business. I see from official reports, they have lost $10 million in deposits in the past three years----from $80 some million to some $70 million. I can give them a few reasons why---including the poor rate of return on CDs and the charging of junk fees. Their lobby has been like a ghost town for the past few years. I can see why.

 

[pb4uski]

The bank I am transferring my accounts to charges $25. And happy to get my business!

You might inquire if that financial institution that you are transferring your accounts to will reimburse you for the $50 exit fee from the other guys... some do. Or some will pay a generous bonus if you are transferring a lot of money to them.

 

[pb4uski]

I checked with yet another bank in town and they do not charge an IRA transfer fee. I closed out my account and started to close out the safe deposit box with the first bank. Even though I have six more months on the box rental, they would not prorate a return. So, I am keeping the box until the next payment. ...

You could always put a few dead fish in your safety deposit box and walk away.

 

[The Cosmic Avenger]

I would have complained and asked that they refund that "surprise" fee as a courtesy, since they can't prove they ever disclosed it to you, but not threatened to close accounts....unless they didn't refund the fee. If they did refund it, I'd probably wait a week or so, THEN close the other accounts. If they're going to try to take advantage of the customer, then they should expect the customer not to act in kind.

 

[Aerides]

I quit Chase after they fee'd me about $30 to receive a domestic wire transfer. I was selling something and sent it to my checking account with them, never even thought to check for a fee. I mean, a fee to take a deposit electronically these days?

Dropped my account after 20 years.

 

[Sunset]

Got a statement earlier this week from one of the banks where I have accounts and saw when I transferred about a little more than $2000 from them in an IRA to TIAA, the bank charged me $50. I transferred the amount because they were paying such a miniscule interest rate. So they had my money about five years, and for which I netted $9.09 (and lost money because of inflation). Fortunately, I had not put more in IRAs with this bank.

When I went in yesterday and talked with the manager, I got nowhere. So, I am closing my accounts and going elsewhere---after being a 20-year customer of the bank. Anything else I can do---besides vent here?

Please name the bank.

We have found Fifth-Third bank will auto-renew CD's to pay ~0% interest rate for folks

 

[Koolau]

Got a statement earlier this week from one of the banks where I have accounts and saw when I transferred about a little more than $2000 from them in an IRA to TIAA, the bank charged me $50. I transferred the amount because they were paying such a miniscule interest rate. So they had my money about five years, and for which I netted $9.09 (and lost money because of inflation). Fortunately, I had not put more in IRAs with this bank.

When I went in yesterday and talked with the manager, I got nowhere. So, I am closing my accounts and going elsewhere---after being a 20-year customer of the bank. Anything else I can do---besides vent here?

You could spit on the floor as you walk out for the last time. Totally symbolic but it might help you to feel better. Of course, I would plan to do such a thing - and then think better of it before I reached the door.

 

[bookman51]

You could always put a few dead fish in your safety deposit box and walk away.

Oh, it occurred to me for a fleeting second, but I realized that whatever I did like that would be easily traced back to me. I still might write a letter to the bank president, who is located in another town, and explain why I am no longer a customer. T doubt he/she will do anything, but it may be therapeutic for me.

 

[bookman51]

You could spit on the floor as you walk out for the last time. Totally symbolic but it might help you to feel better. Of course, I would plan to do such a thing - and then think better of it before I reached the door.

More likely once the check clears to close the accounts, I will write a letter to the bank president of this branch bank and explain why I closed the account. I have access to their deposit information with comparison to other local banks, and they have been losing significant deposits in recent years. I suspect I am not the only one unhappy with them. They used to be just a local bank, and they were purchased a few years ago by a state-wide chain. Since then, they have been going downhill.

 

[bookman51]

Please name the bank.

We have found Fifth-Third bank will auto-renew CD's to pay ~0% interest rate for folks

Farmers & Merchants Bank....it is a bank chain in Nebraska headquartered out of Milford, Nebraska

 

[SecondAttempt]

I quit Chase after they fee'd me about $30 to receive a domestic wire transfer. I was selling something and sent it to my checking account with them, never even thought to check for a fee. I mean, a fee to take a deposit electronically these days?

Dropped my account after 20 years.

I would have been annoyed too. But I think receiving a Fedwire requires a small amount of "labor," i. e. human interaction on the part of the bank while an ACH transfer is free because it is more automated. I'm not sure of that though.

 

[GrayHare]

IRA xfer fees are fairly common. I've sometimes avoided them by getting a check, and then depositing the check elsewhere as an IRA rollover.

 

[sengsational]

Bank of America stole $12 from me when I left. There was no fee to close the account, and as long as a minimum balance was kept, there was no monthly fee. But when I went to take out my balance to close the account, they withheld the monthly low balance fee. I reported them to the AG, but did no good.

 

[Koolau]

Please name the bank.

We have found Fifth-Third bank will auto-renew CD's to pay ~0% interest rate for folks

DW was a math major and always called Fifth-Third bank "One and two-thirds bank."