The Chase no-fee checking account is a fee trap
How does Chase get away with providing so much misinformation to customers? Stories like this keep piling up. Are regulators and lawmakers not aware of them? Perhaps it is time for people to write to their legislators about problems like this?
So against the recommendation of some of you wise folks on piggington, I went for a Chase checking account 6 months ago from a $100 new customer promotion. Why not, I thought since I needed a second account anyway. Chase opens a checking and saving account…
Plus the accounts would have no “fees” as long as you made 5 atm transactions per month or have direct deposit…or so I thought….
So I started out using it normally, with my 5 atm transactions per month. Stick of gum, ATM….Grocery ATM…Stamps at the post office ATM…No big deal….
About 3 months later, I get a note saying:
“Welcome to the Chase Visa ATM Rewards Program. You will be charged $5/month for being in this program…
WTF? You’re kidding right…So I call and talk to them about how this was suppose to be a no fees account…They say “sure, it’s no fees, the accounts are no fee. The ATM card you have however has a fee…..At this point, I really want to close the chase account, but I recall there’s a “fee” for closing an account <6 months…So I’m arguing back and forth with the person, and finally, the 3rd supervisor says that “well, there’s another type of ATM card that isn’t part of the rewards program that doesn’t have a fee….Well switch you to that one..” Fine, I say.. Why they didn’t do this to begin with, well I guess they do this to try to wear you out, because obviously the first supervisors didn’t indicate there was this option….So at this point, I figure screw Chase. I’m not going to use the ATM. Instead, I setup direct deposit and deposit $1 each month…No fees…
Now it’s six months later, and I’m ready to close the account. I call the call center to tell them I’d like to close the account, and have a check cut from the checking and savings account sent to me….They tell me the savings account is $0…..What??? I had $15 in that account… Well, it turns out that 3 months ago, they started charging me a $5/month service fee for the savings account without telling me…I go back and forth with the agents and a few supervisors….
Me: “When I opened the checking account, you threw in a free savings account”…
Chase: “the savings account always had a $300 minimum deposit requirement, or a $5 service fee per month… ”
Me: “Bullshit…You changed the terms without telling me..I had this account for 6 months and only deposited $15 in this account from the beginning…If there was a minimum balance requirement since the first day , I would have had $0 3 months later, and -$15 now… 6 months later…”
Chase: “…Hold on a second please sir…Uh, we’ll credit you the $15 back on Tuesday, but just to let you know, starting next month, you need to maintain $300 or pay a $5/month fee…”
Me: “No problem: by tuesday, after I get my $15 back, I won’t be a customer anymore. BTW: can you give me the confirmation number for the $15 credit you just applied? “…
Chase: “Why?”
Me: “Because in case I need it …Confirmation number please…”
Chase: “Don’t trust me?”
Me: “No, I don’t..Would you, if you were in my shoes? Confirmation number please. And your name…”
Chase: “XXXXXXX, and my name is XXX”
Me: “Thank you…(click)”
Just to be extra sure, I called Chase back and asked a different agent if the confirmation number was valid….it was…fortunately….
… I know, I know… I think a few of you warned me about this…But I don’t like to listen to other people, even if it’s for my own good….
Bad bad Chase, Fees & charges | admin October 12, 2010
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By richard d, January 21, 2012 @ 5:26 pm
just got hit with these damn fees too. So pissed off.
The savings account says “minimum of 300 a day or $25 automatic transfer”
I opened the “free” savings account with $25 in it.
First month, got hit with $4 in fees. I put $296 in it to hit $300. Guess what, next month I got hit with the fee AGAIN! WTF? The terms say if on any day you are below the $300, you will get hit with the fees. So right when my account went to $21, it takes a few days for your transfers to post. So ding ding, they take your money again. If you ever want that lame ass excuse for a savings account, you better damn well start off the account with $300.
As you discovered, the two accounts (checking and savings) have their own separate hoops to jump through in order to have them be no fee.
The direct deposit to checking doesn’t count for savings.
I’m cancelling my account as soon as my 6 months is up for the bullshit teaser for signing up.
By coakl, January 22, 2012 @ 9:46 pm
I think your banker forgot to set up the automatic transfer from your checking to your savings (it must be at least $25 and it must occur at least once a month). That would have waived the savings account fee, even in the first month.
But look at the big picture. Savings accounts are pointless. This is especially true when Chase, like all of the big banks, pays 0.01% interest on them. Just keep everything in the checking account.
The one nasty problem with the automatic transfer is that you may lose track of when it happens and that $25 might have helped you to avoid an overdraft fee. It basically becomes $25 that you can’t rely on.
Also, by keeping your money in two places, you might forget to move money back into checking to cover bigger items. Either way, savings accounts have become potential triggers of overdraft fees if you are living paycheck to paycheck. This is why the bank tried so hard to get you to open a savings account in the first place.
By Common Sense Guy, August 2, 2012 @ 1:47 pm
You guys need to always read the fine print. It is less the bank’s fault than your irresponsibility before signing up for services. I’m sure you blame the traffic light when you run it and its yellow and get into an accident. Learn to take responsibility for your own actions. Read the fine print. You think anything in this world is “free” or has “no fees”? You are aware banks are in the business of making money…. right…? So why in the world would they offer you all kinds of free service…. for your $300? I’m pretty sure they dont need your $300 to remain solvent
Good thing you guys arent running my company or it would be run into the ground by now
By admin, August 2, 2012 @ 2:28 pm
Yes, and the fine print is so legible and easy to understand.