In banking news, Wells Fargo announced that it will test a $3 monthly fee for those who use its debit card. The fee will be levied against customers in Georgia, New Mexico, Nevada and Oregon beginning October 14, 2011. Chase is already testing a $3 fee on its debit cards and considering limiting purchases to $50.
There are several alternatives to debit cards that can save consumers from unnecessary fees such as:
- Rewards credit cards with no annual or monthly fees that pay substantial rewards in the form of points, miles or cash.
- Prepaid cards. Understand the fee schedules as there are several free prepaid credit card options depending on how a consumer uses the card. And some prepaid cards, like the Walmart MoneyCard, offer cash rebates on certain purchases.
- Online banks offer debit cards without fees. ING Direct/ Electric Orange checking account or online banker PerkStreet Financial.
For full article see: Some Debit Cards Will Soon Carry Fees- My Money (usnews.com)
- Wells Fargo drops plan to charge monthly debit card fee (mercurynews.com)
- Banks’ debit-card fees face antitrust review (seattletimes.nwsource.com)