Chase Wants $500 Direct Deposit For ‘Free’ Checking

I am starting to wonder what is happening to all the free checking as I just received a letter from Chase that changes the terms of having a free checking account.

They currently want a direct deposit of $500 in order to waive the monthly service fee on the account and have it remain as free. The other option is to make at least 5 debit card purchases for the month but since I do not use debit I will just set up a transfer in ING to get that direct deposit out of the way.

I use checks in the rare case I have to give someone money and I also use them to make my weekly offerings at church but this is an extra transaction that I have to set up in ING to transfer money back and forth so it is becoming a hassle.

I just found out about Ally free checking which does not require all of this hassle so I am looking at setting up a checking account there and closing Chase.

Author: Lulu

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  1. I was not happy when I got that letter either. I have a small direct deposit going to Chase for savings but it’s nowhere near $500 per month. My favorite part of the fine print is that it can’t be multiple transactions totalling $500 it has to be one lump sum.

    And that’s why I love my credit union.

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    • I had a small DD going to them too but $500 is a big jump. I am going to try out Ally because they have free checking.

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  2. Since they now cannot earn as much fees from credit cards, they are targeting other ways to earn money. Having said that, remember that it cost a bank to hold your money (other than interest – computers, systems, infrastructure etc) and that free checking used to be a subsidy. Remember, banks earn money by borrowing (from you in the form of deposits) and lend them to businesses. But with rates so low, leverage down, I guess this is inevitable!

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  3. That’s too bad that they changed their account terms. At least you noticed in time and acted appropriately. I’m sure many people disregarded the notice and paid monthly fees without even knowing it. Luckily my bank does not have such strict rules for free checking. They just need me to have both a credit card and a line of credit with them.

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  1. Added An Ally Checking Account | How I Save - [...] after I received the letter from Chase about increasing the direct deposit to $500 to maintain the free checking…

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