This whole fee thing makes me nuts.
First, banks charged merchants for every single card swipe (both credit and debit) at the register. Didn’t matter that debit cards were “safer” transactions since no extension of credit risk was involved. Businesses still paid full fare for both, on behalf of their customers.
Now that the Dodd Frank bill has been enacted, putting controls in place that limit skyrocketing swipe fees that hammer merchants, banks have begun looking in new directions for additional fees…consumers, and they’re hoppin’ mad.
(Yes, I appreciate the irony. When a merchant paid the fee on behalf of the customer, many consumers saw it as “the cost of doing business.” Now that banks ask customers to pick up part of their own tab, the bristling has begun.)
The result is a lot of consumers and small business owners closing accounts with big financial institutions, looking toward smaller regional and community banks, as well as local credit unions for relief (and let’s face it…a little appreciation).
Before you begin shopping around, however, you should understand the difference between a bank and a credit union. From the outside, they appear pretty similar, but the way they operate, and who they allow “in the door” differs. In shorthand:
BANKS: Given their structure and funding, banks typically provide the most options when it comes to accessing your money (ATM locations, branch locations, online banking, etc.), in addition to offering a broad network of resources that reach beyond their local physical capabilities. Deposits are insured by the FDIC (be sure to confirm this at the specific bank you’re considering).
CREDIT UNIONS: To join (participate in) a credit union, consumers must meet a set of membership standards, typically as part of a specific group, working in a specific industry, etc. Requirements vary greatly from one credit union to the next; the larger the city you live in, the higher the likelihood you’ll find one you qualify for. Deposits are insured by the NCUSIF (be sure to confirm this at the specific credit union you’re considering).
The Discovery Company (same folks as the Discovery Channel) do a great job of explaining the two here.
Being a big believer that those who do right by the consumer -and- small business should be recognized for such, I’d like to present a list of banks and credit unions who have decided to forego the debit card fee entirely. Not just knock the $5 down to $3 or $4, but wipe the puppy right off their books.
If you know of someone who should be on the list, please add them in the comments. Be sure to format your entry this way (so I don’t have to chase down where each one is located):
Name of the bank (state they operate in)
Now…let’s shine a light on the good guys, shall we?
Banks who don’t charge a $5 debit card fee:
Arvest Bank (AR, MO, OK, KS)
Liberty Bank of Arkansas (AR)
First National Bank (AR)
Redwood Capital Bank (CA)
Mechanics Bank (CA)
BBVA Compass Bank (CO)
Citizens National Bank (CT)
Newtown Savings Bank (CT)
Sandy Spring Bank (DC, MD, and VA)
Seacoast National Bank (FL)
Fidelity Bank (GA, FL)
Columbus Bank and Trust (GA)
Athens First Bank and Trust (GA)
Farmers Trust and Savings Bank (Britt IA)
First State Bank (Britt IA)
First Robinson Savings Bank (IL)
Old Second Bank (IL)
Riverside Community Bank (Rockford IL)
Sunflower Bank (KS)
Bluegrass Community Bank (KY)
TD Bank (ME, south to FL)
Missouri Bank (MO and KS)
Adrian Bank (Adrian MO)
Bremer Bank (MN)
Tryon Federal (NC)
First Citizens (NC, SC)
Bank of Albuquerque (Albuquerque NM)
Bank of New Jersey (Vineland NJ)
Provident Bank of New Jersey (NJ)
Genesee Regional Bank (Rochester NY)
Albina Community Bank (Portland OR)
Bank of Astoria (OR)
Premier West Bank (OR, CA)
Umpqua Bank (OR)
National Bank of South Carolina (SC)
Plains Capital Bank (TX)
Benchmark Community Bank (VA)
Carter Bank and Trust (VA, NC)
Highlands Union Bank (VA, TN, NC)
Virginia Commerce Bank (VA)
Columbia Bank (WA)
Washington Trust Bank (WA)
Credit Unions who don’t charge a $5 debit card fee:
Mendo Lake Credit Union (CA)
Members 1st Credit Union (Redding CA)
Redwood Credit Union (CA)
Ent Federal Credit Union (CO)
First Southwest Bank (CO)
Delta Community Credit Union (Atlanta GA)
Dupaco and Dutrac Credit Unions (Dubuque IA)
White Eagle Credit Union (KS)
Metro Credit Union (MA)
Wings Financial Credit Union (Minneapolis MN)
St Mary’s Credit Union (NH)
PSE Credit Union (PA)
UT Federal Credit Union (Knoxville TN)
USAA (TX)
UVA Community Credit Union (VA)
Harborstone Credit Union (WA)
iQ Credit Union (WA)
Summit Credit Union (WI)
UW Credit Union (WI)
Badger Campus Credit Union (WI)
United Bank (WV, OH)
Fine print: Obviously, I’m not personally endorsing each institution since that would require accounts in each to gain first hand experience with each which would require one truly enormous winning lottery ticket which would require me actually purchasing lottery tickets. The institutions listed above came from fans of The 3/50 Project Facebook page and readers here. Thanks to everyone who chimed in!
11.1.11 Editor’s note: It’s being reported that the large national banks who thought a $5 debit card fee was a good idea are now rethinking the idea. It appears Wells Fargo has officially decided to drop the fee; a number of others who initial went for the $5, then dropped to $3, are now talking about dropping it entirely.
It’s also reported that State Farm’s banks (another national brand) is foregoing the fee; whether that was originally the plan or something they’ve backed up to, I don’t know—the person who posted them in the comments didn’t say.
Since the original list above is comprised of smaller, regional and independent financial institutions (a perfect fit for The 3/50 Project), I’ll keep it up, sans big national brands.
Please confirm with your specific bank, regarding the debit card fee. Things are fluid in the banking community; this list will not be maintained on a daily basis to update due to…well…only so many hours in the day. Thanks for understanding!
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Savings Bank of Walpole in Walpole, NH and Keene, NH do not charge an ATM fee!
Please change “who” to “that” in your title and article. The government is already treating huge corporations as people, and “who” refers to people.
Editor’s note: Corporations *are* people…many of which have made truly poor decisions, thus the current economic mess. Rather than depersonalize them, let’s focus on holding them accountable for the decisions they make. A box didn’t decide to add the $5 fee; a room full of people did.
Bank local where they know you, treat you right and appreciate your business.
Bank of Hemet does not charge a fee.
Arvest Bank (Arkansas, Missouri, Oklahoma, Kansas) is committed to free checking / debit card.
Benchmark Community Bank (VA)
Carter Bank and Trust (VA, NC)
The Provident Bank of NJ – they do not charge for my debit card AND they refund any other banks’ ATM usage fee.
A great local bank with wonderful hours for both the customers and the employees.
Tammy, thank you for that information. I’ll have to check them out in the next couple of months.
Highlands Union Bank– Virginia, Tennessee, North Carolina–no debit card fees
I am finding that at many banks and credit unions it is not an across the board fee or no fee . It depends on your accounts and/or amount of $ you have at the institution. The consumer has to be their own advocate. Just went through the research setting up banking for my two college students.
St Mary’s Credit Union (oldest in the country!) New Hampshire-no debit card fee.
Virginia Commerce Bank (VA) does not charge a debit card fee nor an ATM-use fee! They are a true community bank where the tellers and managers still greet their customers by name.
BBVA Compass Bank Colorado
Ent Federal Credit Union Colorado
Premier West Bank in southern Oregon, and northern California are not charging their customers debit card fees.
We run a family Brick and Mortar, shop local is very important to us. We use Citizens National Bank in Putnam, CT. They do not charge.
PSECU, a credit union based out of Harrisburg, PA doesn’t have any of these fees. They are a branchless credit union, so you do everything online or over the phone.
Dupaco and Dutrac in Dubuque Iowa, both credit unions, both without that fee.
My bank (credit union) doesn’t charge – Lockheed Community Credit Union. Requirements to join have gotten very easy and why it’s no longer “employees” credit union.
Editor’s Note: Gotta know where they’re located. Please be sure to add the state when adding a name to the page.
First National Bank in Western AR has chosen NOT to charge for debit card use.
Metro Credit Union doesn’t charge debit card fees. ATM withdrawals are surcharge-free at NYCE and SUM network machines (tho some of the banks will charge a fee to non-account holders using their machines).
They’re based in Chelsea, MA, and have 12 branch locations.
I’ve had an account w/them for ~20 years…
USAA does not charge fees. They did get rid of their “debit rewards” program in order to do so (not charge fees). USAA is only open to military and families of military. They are located in San Antonio but you can live anywhere and bank with them.
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