Any of you bankers out there, explain this to me.

Why do I get letters from my bank saying they're going to start charging me an inactivity fee because I have let them use money and have not spent any of it? It's a SAVINGS account! I went into a credit union today and was told if none of my information had changed, nothing needed to be done. Then they came back and said I'd have to make a small deposit. I wish I had had a penny in my pocket.

Frustrating, idiotic and senseless.

This is why I bank with Schwab and have never looked back.

Because they can.

Either close the account or keep enough in there to get the fees waived.

The bank has determined A) The amount of money beneath their fee-free minimum isn't worth the cost/liability of servicing the account, B) That enough people are unaware or uncaring of this fee to change banks over it, or C) A combination of them both.

A million options out there, go with one that doesn't nickel and dime you.

I would certainly hope so. If it's not, then you're at the wrong bank.

Talk to someone to make sure the fees are waived or move banks. There's plenty out there that don't charge a monthly service fee -- hell I'd say the vast majority wouldn't for $250k.

Proposition Joe said:

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I would certainly hope so. If it's not, then you're at the wrong bank.

Talk to someone to make sure the fees are waived or move banks. There's plenty out there that don't charge a monthly service fee -- hell I'd say the vast majority wouldn't for $250k.

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This is not a service fee, it's an inactivity fee. I can avoid it by depositing a dollar but it's a pain.

$250,000 at Bank of America gets you Premier service and zero fees. But if I had that much in a bank savings account I'd put it in a brokerage account. You don't have to buy stocks, just use the mmkt, they have tons and will tell you which pays the most. Or if yours insists on investments buy something for $1-2000. You'll never get the bank to change their policy so you need to change yours. People rag on Merrill but it's owned by BoA and I switch cash between the bank and brokerage using the apps on my phone.

I've done this with BOA for about 10 years. It works pretty nicely.

Yeah, I was about to abandon BoA but the money market being eligible for the Premier tiers has kept me there.

What the bank did was save you a big headache. The fee was because they had to contact you about your dormant account and were preparing for more potential work on your behalf.

Had you not responded, then they turn all the funds over to the state treasury as unclaimed property.

Then you get to go here to try and get it back:

https://www.claimittexas.gov/

If you want to complain, call the Comptroller's office and your State legislator.

OldArmyCT said:

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$250,000 at Bank of America gets you Premier service and zero fees. But if I had that much in a bank savings account I'd put it in a brokerage account. You don't have to buy stocks, just use the mmkt, they have tons and will tell you which pays the most. Or if yours insists on investments buy something for $1-2000. You'll never get the bank to change their policy so you need to change yours. People rag on Merrill but it's owned by BoA and I switch cash between the bank and brokerage using the apps on my phone.

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$250,000 I would have it in my Fidelity cash reserves earning 4.9% and have an associated CC with a $25,000 limit in case I needed the get a few thousand before I could transfer it to my bank account. My bank charges me $5 a month with no minimum required.

woodiewood said:

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OldArmyCT said:

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$250,000 at Bank of America gets you Premier service and zero fees. But if I had that much in a bank savings account I'd put it in a brokerage account. You don't have to buy stocks, just use the mmkt, they have tons and will tell you which pays the most. Or if yours insists on investments buy something for $1-2000. You'll never get the bank to change their policy so you need to change yours. People rag on Merrill but it's owned by BoA and I switch cash between the bank and brokerage using the apps on my phone.

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$250,000 I would have it in my Fidelity cash reserves earning 4.9% and have an associated CC with a $25,000 limit in case I needed the get a few thousand before I could transfer it to my bank account. My bank charges me $5 a month with no minimum required.

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That's more or less what the BoA/Merrill situation is Most brokerages have ability to have the cash "swept" into a high yield account.

If you're keeping 6 figures regularly at any bank, paying any kind of monthly fee seems outrageous to me. Sure it's just $60 a year, but it's still being nickel and dimed -- the bank has half a dozen ways to profit off of your balance wherever it's at.

woodiewood said:

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$250,000 I would have it in my Fidelity cash reserves earning 4.9% and have an associated CC with a $25,000 limit in case I needed the get a few thousand before I could transfer it to my bank account. My bank charges me $5 a month with no minimum required.

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Fidelity cash reserves isn't paying 4.9%....SPAXX is currently a 4.13% (7-day yield) and FDRXX is at 4.19%. Completely agree with your point but the rates aren't that high anymore.

https://www.marcus.com/share/DER-NEW-2G4X

Marcus effective rate with referral is 4.9 right now (3.9+1% referral bonus). Very easy to move money in and out.