Bank of America Will Charge For Debit Card Use

Members of Bank of America are just the first in line in a way of changes coming to debit card users.  Beginning shortly they will charge $5 a month for the convenience of having the debit card. 

Since the big financial crisis banks have been looking for a way to make money off of the people they claim to help.  Because of the bail out they got, they weren't able to charge as much in overdraft fees, so their new solution is to charge customers $5 a month for using their debit card.

According to Reuters Bank of America is just the first one to roll this out.  Other banks such as Wells Fargo and JP Morgan Chase are currently coming up with a plan like this on their own.  A Bank of America spokes person said that the reason for the fee is because the "economics of having a debit card have changed".

You might think that just by hitting "credit" instead of "debit" when you make purchases will save you the monthly fee, but that's not the case.  The fee is simply for having the card itself.  They won't charge for using it at bank ATMs, so you may want to start carrying cash instead of the plastic.

Citi Bank said that they would not be rolling out a program like this.  A spokesperson for Citi said that a fee for debit cards would just be irritating for the customer.

Looks like it's time for everyone to get away from the big banks, and join up with the much more reliable Credit Unions.  I recommend Cap Com.  They are not only a fantastic place to work with but they offer great workshops and classes from anything from managing money for college, to buying your first home.