"Monthly service fees ensure that your account is profitable for the bank. Maintaining your account costs money, and that money has to come from somewhere. Luckily for you, there are many ways that the bank can earn that money without having to charge you directly. If you keep a high enough balance or get a direct deposit into your account this creates value for the financial institution. They can use the money you deposit to make more money, usually by lending it out at a higher interest rate or investing it. When a debit or credit card is swiped the merchant gets charged a small fee. The card issuing bank may get a percentage of this fee. So if you are saving or spending money you can be profitable without paying a pound from your pocket." TV Dr. Smarmypants steps out of the direct lighting and creeps into the bushes right under Charlie's window. The light is breaking through the leaves and illuminating TV Dr. Smarmypants in ominous ways.
"That's all well and good for productive members of modern society who are out there making money and spending it as fast as they can, but what about the unloved unused accounts? If money isn't going in or out of the account in a satisfactory volume or variety it is just a drain on the bank's finite resources. The money to maintain your account has to come from somewhere, so a fee may be charged to ensure that all accounts are profitable." TV Dr. Smarmypants pauses to peek into Charlie's window, take a few pictures and then creep off towards the mailbox.
"Every account has its own parameters to avoid the monthly service fee. As always you should check with your financial institution to find out what specific criteria apply to your individual situation. Some common ways to avoid monthly service fees are by keeping a minimum daily balance in the account. This means that your account has to stay above this balance for the entire statement cycle in order to avoid the monthly service fee. An average daily balance is a slightly different method which, as the name implies, calculates your average instead of just looking at the lowest point. These are both suboptimal ways of avoiding the fee because checking accounts are designed for you to be able to have access to the money. If you have to keep a minimum daily balance you are losing access to some of the funds. Some options that your bank might use include getting a qualifying direct deposit, having other accounts in your relationship or spending money in specific ways. If you are under your states legal age of majority most banks will waive the monthly service fee. If you are currently getting charged a monthly service fee consider changing your account to a different type with the same institution.* Perhaps they have an account with parameters that are easier for you to meet. If they don't have an account with a fee you can avoid it is time to research the fee structures at other institutions to see who can offer you the best deal."
TV Dr. Smarmypants opens Charlie's mailbox. It looks like it's been building up all week. TV Dr. Smarmypants purloins the entire bundle and starts rifling through it. He steps under the spotlight streetlamp and starts throwing junk mail over his shoulder until he comes to Charlie's combined statement of accounts. He opens the letter. Zoom in on the upper right hand corner. TV Dr. Smarmypants slightly shifts his thumb and forefinger to raise the top right hand corner of the second page to protrude just above the corner of the first page so that you can see the Checking account number and the savings account number in one easy shot. They aren't blurred out or anything. Scandalous.
"Despite all the unfounded fear around banking online the simple fact is that most identity theft happens out of a trash can or a mailbox. Let's be honest with ourselves. If a super hacker did exist that could break high encryption sites would he be wasting time with YOUR meager resources? You don't think someone of that extreme intelligence could find a bigger fish to fry? Now someone willing to dig through trash on the other hand, that guy has got time for you buddy. (Cut scene back to TV Dr. Smarmypants getting his finger in a gob of trash statement chili and being a pod person at the same time.) In addition to the security benefits getting your statements online can sometimes eliminate or reduce your monthly service fee!" He said as if you weren't already getting online statements. Way to save a tree. Go you.
*In many cases if you are changing within the same type of account and within the same institution you can keep your account number, debit card, checks etc.
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