Citibank hits checking accounts with fee

UPI ^ | 10/1/11

[EBH]

U.S. banking giant Citigroup Inc. said this week it would charge $15 per month for checking account holders who kept a balance below $6,000.

The firm's move comes on the heels of Bank of America's announcement this week that it would charge $5 for most debit card holders and sparked at least one desertion, the Los Angeles Times reported Saturday.

Cheryl Holt of Burbank, Calif., said she was "on my way out the door right now … off to start a new account at my nearest credit union."

"Should have done it years before," she added.

Holt said she received a letter with an "absurd salutation," that said, "Customers like you have told us that what they want from their banks are simple options and great rewards. We heard you and are writing to let you know that we are making some changes to your EZ Checking Package."

That said, the bank dropped the $180 per year bomb.

[Dilbert San Diego]

I thought they got their money almost immediately. If that doesn’t happen, then my idea that the money is safe is wrong.

I personally know of a couple of smaller banks which had failed, in which the banks were closed on Friday, and re-opened for business as usual on Monday, after having been merged into other healthier banks. If that happens, then the customer would not have any interruption of access to their money.

If FDIC doesn’t pay people right away in case of a bank failure, then the FDIC insurance would be meaningless.

[CodeToad]

If a bigger bank takes over the smaller, sure, the money has been there, but if the bank simply goes out of business it has taken a few days to a few months. It is one reason I keep multiple accounts at various banks to limit risk, such as bank computers that go out over the weekend and debit cards have failed to work.