[bpodgursky]

Just read the article. It's $1 for the card and free cash withdrawal at a Wal-Mart banking center.

It is $5/mo for accounts with less than $1000, but you're not going to get better than that at a bank.

More importantly, they aren't pulling the overdraft scams that banks are. The example right here is that the customer in question pulled $100 in overdraft fees over a $4 purchase, with a traditional bank card.

[johndotsun]

>It is $5/mo for accounts with less than $1000, but you're not going to get better than that at a bank.

That might be true of the big national banks with a branch in every town small and big alike but it's not true of the smaller local banks and credit unions. My checking account at my credit union is free as long as I maintain a balance of at least 5 dollars. It has branches in the area with decent hours, it has an excellent online banking site, it has excellent customer service. When I walk in to do some business I'm not bombarded with sales pressure to waste my money in exotic types of accounts that the credit union offers that do more for the bottom line of the credit union than for me. If I travel across the country I can access my money through a national network of similar credit unions without paying any fees.

To my understanding this is extremely common among credit unions in other areas.

Oh and to reply to one of your comments below, my credit was extremely poor when I opened my account. I received nothing but highly professional customer service regardless.

[sgs1370]

Not all credit unions are equal, so just watch out. I had been actively using my efcu account then switched to usaa bank for the bulk of activity, and - my mistake - wasn't watching the efcu cu account closely enough and they started charging $5/month inactivity fees.

[nxc18]

Skip the bank. Credit Unions are where its at: nation-wide shared branches, fee-free checking, sane overdraft policies, no minimum balances, reasonable interest payments, and in my experience, not a single instance of them blatantly trying to screw customers.

I just checked and my CU has a $30 overdraft fee, which can be disabled if you're willing to let things bounce.

[coredog64]

CU member, and I'll mention one downside. Unless your credit union has a local branch, you will need to get used to all kinds of weird restrictions on what your satellite branch can do for you.

I just bought a car, and the satellite branch could only give me $1000 in cash. I had to beg the seller to take a cashier's check for the balance.

Sometimes the systems don't integrate well and so they have a hard time figuring out which account is which.

Finally, even though my spouse is listed as a co-owner of the account, there is very little she can do at a satellite branch (or even over the telephone to the main office).

[moftz]

Why don't you just close your account your CU and open up an account at the one closest to you? I have no loyalty to my bank. If I move and there's no branches around me, I'll just move to someone else that is local.

[kevin_thibedeau]

Try opening a CU account without credit.

[memonkey]

I didn't have credit when I opened my account with a CU. I don't even think they ran a credit check.

[dragonwriter]

I had little (and mostly bad) credit when I opened my first CU account. Wasn't a problem, at all.

It might, OTOH, be hard with the same kind of bad account history that will stop you from being able to open a regular bank account, but that's different from regular no credit or bad credit.

[adrr]

Most small and medium size banks don't pull your credit report. Its Chex Systems to see if you have any deposit accounts in bad standing. Some also pull fraud scores from experian or equifax as well to see if you information has been used in identity theft recently.

[ryanhuff]

No credit, or bad credit?

[Pseudosudowoodo]

I can confirm at least for my union, they had no issue with my very bad credit. They were more concerned with recent debts and rent, things like that.

Background: For the record, it was due to defaulting on a student loan. It's taken care of now, but back then I couldn't afford the 10% interest rate.

[morgante]

> It is $5/mo for accounts with less than $1000, but you're not going to get better than that at a bank.

Sure you are. I have many accounts with less than that. Don't spread FUD.

Overdraft fees are easy to avoid if you just tell them to decline overdrafts.

[TheSpiceIsLife]

Your comment would have been better if you had linked to examples rather than accusing the parent of spreading FUD.

Maybe you're a student or have multiple products (different types of accounts, credit cards, home loans, term deposits) with your bank?

I can't get a $0 / month account for everyday banking from my bank because I have a special rate home loan. They have a savings account that's $0 / month but you can only transfer from / to it via a regular $4 / month account.

[morgante]

Here are my various no-fee checking accounts:

* http://content.schwab.com/web/retail/public/get-started/chec... - amazing checking account, reimburses all ATM fees

* https://www.capitalone.com/bank/360checking-guide/

* https://www.aspiration.com/summit/

I do have a few other ones but they're based on relationship banking. All of the above have no fee and no minimum.

[kevan]

Step 2 in this analysis: Would you be able to get any of those accounts with a low credit score? I'm pretty sure when I opened my Schwab checking account they ran a credit check.

[morgante]

I've had most of those accounts since I had virtually no credit (and a low/nonexistent credit score). That being said, if you have a negative Chexsystems report they'll be hard to get.

I'm not trying to say the unbanked don't have barriers. I just didn't like the assertion that free checking is impossible, since that's what leads to even people on HN paying needless maintenance fees.

[lazyasciiart]

Schwab runs a credit check for that account because they also open a brokerage account for you that allows you some ability to float funds.

[dajohnson89]

Bank of America customer here. Not aware of any fee being applied to my checking account.

[fefesafaea]

It's important to note that many large banks actively discourage customers from opting out of overdrafts. So much so that they even have scripts they make their tellers recite.

For example, if you attempt to opt out, the teller might say, "but what if you are at the gas pump and can't get gas because you have opted out of overdrafts?" The subtext being, "wouldn't it be better to get enough gas to get home and in the process incur a 40 dollar fee."

[ars]

Allowing overdraft for checks can save you money though since you'd have to pay the depositors fee otherwise.

A good bank let's you disable overdraft for debit card while enabling it for checks.

[snuxoll]

Solution: don't write checks? I use cashier's checks wherever possible, I get them for free and there's never a potential for overdraft nightmares since it comes out of my account right away - the only time I've written a check in recent memory is the registration fee for my daughter's preschool since my wife wanted to pay it on-the-spot if she liked the place.

[DamnYuppie]

I am willing to wager that those accounts have requirements for automated deposits into them and or are tied to other accounts that have similar balance/deposit requirements.

[asafira]

What do you mean by "It is $5/mo for accounts with less than $1000, but you're not going to get better than that at a bank."? Aren't there lots of banks that charge nothing even if you only have <$1000?

[johnm1019]

A great example is Ally Bank (happy customer here!)

https://www.ally.com/bank/interest-checking-account/#fees

[pilom]

Seconded! Been a customer for 10 years and I'm still extremely happy. I can't say that about any other business I've ever worked with.

[bpodgursky]

There aren't many anymore. Banks mostly eliminated or heavily restricted free checking accounts when overdraft fees got capped.

You may be able to find a couple credit unions that do this, but you still have minimum account balances and other hurdles that make it difficult to open an account if you have bad credit and little money (not to mention time or financial savvy).

[nxc18]

My credit union requires I have a savings account with $5.00. The overdraft fee is $30. There are no recurring costs outside of that. Both checking and savings accounts earn interest - much less for the checking account - rather than costing me money.

I don't know about the credit check part; I set up with my parents years ago so that may have exempted me as I didn't have any credit history at the time.

[ErrantX]

> There aren't many any more...

...in the US.

In the UK its the opposite; the majority of checking accounts are free, some premium accounts charge a fee but generally come with rewards.

Overdrafts; there are fees for unarranged overdrafts, but its reasonably trivial to arrange a limit and this is generally fee-less (naturally you pay interest; mine is 1.2% calculated daily)

ATMs are largely free regardless of who your bank is.

[briandear]

In France they sure aren't free. Banks even charge a monthly fee for a debit card in addition to a monthly account maintenance fee. Of course banking in the France is stuck in the 1980s with many banking transactions requiring an actual visit to your specific bank branch and a consultation with your personal banker.

[ErrantX]

Interesting; my perspective (working in the finance industry) has been that European banks are ahead of the curve with technology and, importantly, technology for customers. It sounds like maybe not?

[JustSomeNobody]

Not really. It's very expensive to be poor (in the U.S. at least).

[pacaro]

It grates for me when I withdraw cash. The most convenient ATM for me charges $3 when I withdraw money. My approach to this is to never pull less than $300, so the fee is 1% or less. But for people who are pulling $20 because that's what they have right now, this is a 15% tax. It's a perfect example of regressive taxation. For me it's a minor inconvenience, for most Americans it's a significant burden.

[thinkling]

If you use your debit card to pay for groceries, you can get $40-60 cash (or more) each time without paying a fee.

[cafard]

My debit card comes through a credit union. As long as I use the ATM of another credit union in the same network, I pay no fee. As it happens, there is such an ATM on the side of the building where I work, and for that matter I think there was one about half a mile from my late mother-in-law's house a hundred miles from here. I do resent paying $3 to Bank of America because I forgot to withdraw money before I left for work.

[kevin_thibedeau]

Don't use out-of-network ATMs. Especially privately owned ATMs as they are far more vulnerable to skimming.

[jjeaff]

Get an Ally account. Problem solved. I believe you get reimbursed for up to 10 withdrawals a month or so.

[wavefunction]

Often times banking services like this make money off of incidental fees like balance inquiries that would normally be free, or fees to call an agent.

[ricardonunez]

A lot of banks got rid of their free or low cost checking accounts. Hard to find anything less than $12 per month when the balance is below $1500.

[snuxoll]

I wouldn't say it's hard, Wells Fargo has free checking for anyone with over $500/mo in direct deposits or makes 10+ debit card transactions per month. Even someone making part-time minimum wage can probably make the debit card requirements without an issue.

Every credit union in my area offers free draft accounts as well, just put the $25-100 member balance into savings and you're done.

[shawn-butler]

You can't be seriously recommending Wells Fargo to any consumer are you?

They have proven to be a criminally fraudulent organization time and time again.

[snuxoll]

Some people can't afford to be overly picky with their bank, and I know at least one person who has been screwed by at least one of the big (US, consumer) banks (Bank of America, Chase, Citi, US Bank, Wells Fargo) - all of them suck.

For as awful as they are, Wells Fargo even has the "opportunity" checking account that gives people who have negative marks on ChexSystems a second chance at having a proper checking account. Compared to the awful re-loadable debit cards from Walmart, et. al, it's a great option and the monthly fee can be waived with 10 debit transactions per month or $500 in direct deposits.

Would I go out of my way to say I LIKE Wells Fargo? Hell no, they've done tons of shady stuff - but compared to how US Bank has screwed over every one in my family at least once they've been at a "below average" level of suck.

[astrange]

If you never have to make cash deposits:

https://www.capitalone.com/checking-accounts/online-checking...

[r00fus]

Technically true, many banks charge a monthly fee, but most/all credit unions do not.

What's the benefit of personal banking through an actual bank over a credit union? I see none currently except it's a bit more difficult to send/receive money internationally through mine (I'm fairly sure it isn't all CU's that have this issue).

[rdl]

They could probably win on goodwill if they waived that fee freely for anyone who walks into a Walmart every month, or makes a single transaction, or is part of some group considered vulnerable or worth subsidizing (veterans, benefits recipients, etc.)

[tastythrowaway2]

I literally have 3 accounts that are better than that, also with no ATM fees.

[FullMtlAlcoholc]

> It is $5/mo for accounts with less than $1000, but you're not going to get better than that at a bank.

A simple google search for free checking account gave me 20+ such banks in the first result.

[batiudrami]

>It is $5/mo for accounts with less than $1000, but you're not going to get better than that at a bank.

What? It costs money to lend your money to the bank in the US?

[maxerickson]

At lots of places, yes. They usually wave the fees for modest account minimums or accounts that regularly deposit paychecks.

There are enough banks/credit unions that don't charge fees that it is more of a way of asking people not to open an account than it is a problem with access to banking.

[thinkling]

Not just in the US. I encountered fees in several countries in Europe (definitely NL).

[falsedan]

Australian ATM fees are ridiculous, $0.50 for in-network and $2 for out (at CBA). On top of 0% interest too.

[briandear]

France for sure. Banking is ridiculous here in terms of fees.

[fefesafaea]

I read it. Maybe you should go to a store and actually get one of these cards, then let me know how it works out.

Seriously though, these cards, like many "financial products" come with a variety of price points and fee structures. If you re-read my comment, you'll see that I didn't claim my figures were definitive, but they are definitely in the ballpark.

[bpodgursky]

Um, no, you completely made up the numbers, making no attempt to source from the article which laid them out clearly. It's not the same "ballpark".

- It's $1 for the card, not "$5-$10"

- It's free cash withdrawal, not $3

- It's free deposits from direct deposit or government benefits, not $3

You are not approaching this remotely honestly.

[fefesafaea]

https://www.walmartmoneycard.com/account/legal-info-page?pro...

As I said, there are a variety of cards on offer, from a variety of sources, but they all seem to fall within the same range cost-wise, even if the fees are structured differently.

It's as if we are arguing about cars, and you want to debate whether the pinto in question had power-windows or not, while ignoring the fact that it will explode in a routine accident.

[bpodgursky]

Dude, you really need to think carefully about whether you are approaching this topic honestly, or if you are hunting for reasons to reinforce your belief that this card is a scam.

The precise things you claimed about this card are _not true_. Those are facts. If you want to debate, use _facts_.

Nobody is denying that WalMart _could_, if they wanted to, offer a savings card which is a scam. But also consider their motives going into this, compared to the average bank:

- Wal-Mart's goal is to get people to spend money at Wal Mart. This card makes it easy to spend money at Wal-Mart.

- Banks exist entirely from interest on saved money, and on fees.

Since these customers have very little saved money (the whole point of this article), the money made is entirely from fees, unless you have another reason to get people to use the card. Wal-Mart does -- it is totally reasonable for them to run this program at-cost to attract customers. You cannot say the same for any bank.

If you want to disagree with the merits of people spending money at Wal-Mart, that's a different topic. But the evidence points to this card being a good deal for an underserved part of the population.

[fefesafaea]

Not sure why you are accusing me of intellectual dishonesty, unless the goal is to derail the conversation.

You are right to say that a few of the specifics I gave were not correct. I was clearly not arguing that. However, the specifics you gave were not 100% correct either. For instance, if you go to an atm machine in a wal-mart and attempt to withdraw cash, you will be charged 3 dollars. The fee breakdown I linked bears this out. A fee breakdown, I might add, that is several pages removed from the main page describing the class of card in question.

[bpodgursky]

The FAQs (https://www.walmartmoneycard.com/account/faqs) say

> You can withdraw cash from your card at any Walmart register or MoneyCenter. This service is free for the Walmart MoneyCard product with Cash-Back Rewards.

Where are you looking?

[kefka]

You do realize you're talking to people who've never had to use these services, never made under $40K (except when living at home), and are many steps removed from ever having to go through this?

Yeah. I have. I did the Green Dot. Pile of shit, with hidden service fees, usage fees, loading fees, fee fees. Oh yeah, YC.

Ive been on food stamps. I've been on unemployment. Even been homeless for a time. Right now, I have a significantly better job... But I still live in a trailer.... err, "Tiny House".

But anyways, good luck explaining what you mean. These people don't get it, and their societal structure means that they won't get it, even if you linked the very documents to them. It's out of their worldview.