If you’re like many consumers, you’re mad as hell about the big banks charging monthly fees for the privilege of using your debit card!  Due to a new law which cuts the fee that banks charge merchants from 44 to 21 cents, this results in a loss of around 16-19 billion in revenue.  So who do you think the banks are looking to in order to help recoup some of those losses?  You. Me.  Anyone who uses a debit card.

Bank of America leads the way with a $5 monthly fee during any month that consumers use their debit cards to make a purchase.  Note that this fee is in addition to any other account maintenance fees.  For example, with a certain basic BOA account, if one does not maintain a $1500 balance (average) then the fee is $12.

Your bank may not charge you fees now, you can pretty much expect them to fall in line with this new practice.

What Can I do About It?

Beat The Banks At Their Own Game: Use a Credit Card

This sounds counterintuitive and perhaps even risky, but, if used carefully you can use the banks money for FREE without paying a red cent in interest or fees.  Take a credit card with a zero balance and a high enough limit and place all of your monthly purchases on it.  This can be bills and/or routine daily purchases.

During this time, you have to make certain that you are putting aside the funds needed to pay the bill at the end of the month! This is a must and if you aren’t disciplined enough to do this, stop reading and move to the next alternative.  A few days before the billing period comes to an end, pay the bill!  All of it!  This way you don’t carry a balance and aren’t charged interest and fees on your credit or debit card.

Join A Credit Union

Credit Unions typically have specialized membership criteria so check to see if you qualify.  Their overall rates are often better and you feel less like a number so the service is often personalized and tailored to your needs.  Check out http://www.findacreditunion.com/ to find one near you!

Move Your Money To A New Bank

Move Your Money Project is a nonprofit campaign that encourages individuals and institutions to divest from the nation’s largest Wall Street banks and move to local financial institutions…. Use their bank-finding tools to find a new local bank or credit union that will give you personalized service, lower rates and fees and on average, contributes more to your local economy.

Cash Is King

Some of us joke that we need to go back to putting our cash under the mattress, well maybe a safe deposit, fire proofed box but you get my drift!  At least you won’t be paying to store or use your own money.

Bank Recommendations 

• ING Direct
• USAA
• Ally Bank
• Capitol One
• Schwab Bank- Schwab also offers zero-fee checking accounts, and reimburses all ATM fees

Check out other Internet banks if you aren’t tied to needing to go into a brick and mortar bank on a regular basis.

As of this writing on October 3, 2011, the following chart from MyBankTracker.com details the fee status of some major banks:

Debit Card Fee Status of Largest U.S. Banks

Do you know if your bank will begin charging new debit card fees? What are you planning to do about it?