Transcripts

"Commentary"-The Bottom Line About Bank Fees

SUSIE GHARIB: Tonight's commentator says to find a good deal when it comes to banking, you need to read the fine print. Here is Myron Kandel, president of the New Hampshire Initiative for Corporate Responsibility and Investor Protection.

MYRON KANDEL, NEW HAMPSHIRE INITIATIVE FOR CORPORATE RESPONSIBILITY & INVESTOR PROTECTION: I'm not in the habit of overdrawing my checking account, although I must admit I have bounced a few in my time, but not lately. That is because it costs real money to do so.

And for you and me, that is just money down the drain; but for banks, much of that money goes to the bottom line. Check-bouncing fees have reached a record average of $27.40. That is according to bankrate.com. And that can hurt, especially if several of your checks are in the red at the same time.

One major bank charges $25 for the first bounced check, then goes as high as $35. I'm not suggesting that most bankers are mean, but they do want to make a buck or two. And one of the ways to do so is by raising fees on items that are not on the front-burner for the average customer.

With profits from consumer checking under pressure, banks have turned to items that are not part of their marketing push to help close the gap. They use the rather quaint term of "non-shopped" fees, meaning those charges consumers don't consider when they shop around to open an account.

We usually look for such things as charges per check and monthly fees, which competition has pushed down. Meanwhile, other fees and required balances go up. So bank customers these days need to keep their eyes open, and read the fine print, as well as the come-ons in the big ads.

I'm Myron Kandel.