TD Bank announced it will raise fees in certain areas today, but the Northeast-based banking institution's increases impact some unexpected services.
Here's a breakdown of the changes, which go into effect next month.
- Excessive savings account withdrawals (six allowed free each month): $9 for each additional remote transaction.
- Wire transfers: $15, previously $10.
- Certified checks: $8, previously $4.
- Money orders: $5, previously $4.
- Stop-payment fees: $30, previously $25.
Before we continue the joy ride on the bank-hate bandwagon, I think it's important to note these fees seem fairly avoidable. The bank isn't raising minimum balance requirements or making a checking account any more challenging to maintain.
I spoke with Rebecca Acevedo, TD Bank's public relations manager, and she told me the bank conducted an internal review of its customers' banking habits to determine how these fees would impact account holders. She says the new fees will impact less than 1 percent of the bank's customers. In my opinion, that's a lot better than instituting changes that affect everyone with a debit card.
While some might argue the penalty for additional savings account withdrawals is unfair, TD is actually imposing a fee for a government rule. The Federal Reserve's Regulation D limits the amount of online, telephone and mobile-based withdrawals from a savings account to six per billing cycle. TD isn't alone in this charge, either. Quite a few banks charge for violating Reg. D.
As my co-blogger, Claes Bell, pointed out earlier this week, banks will inevitably roll out new fees over the next few months. The attempt to charge for debit card use has been a massive failure for the banking industry, and they will compensate for lost profits somewhere. All in all, the changes at TD seem like the bank will increase revenues in certain areas without alienating their entire customer base.
What do you think? Would any of the changes that TD introduced mean more fees for you?