Banks May Start Charging to Hold Your Deposits: 5 Things to Know for the Week

Simon Zhen

By , Staff Writer
Posted on Mon Nov 25, 2013, Last Updated on Thu Dec 4, 2014

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Banks May Start Charging to Hold Your Deposits: 5 Things to Know for the Week

Paying a bank to simply hold your money may seem like nonsense, but it could happen. If the Federal Reserve decides to further stimulate the economy by dropping rates, lower revenue for banks could make that a reality.

  • Chase has released the the 2014 Q1 cash back categories for the Chase Freedom card. From January to March 2014, Chase Freedom cardmembers will earn 5 percent cash back at gas stations, movies theaters and Starbucks stores on up to a combined $1,500 spent on all three categories during the quarter (for a maximum of $75 cash back on those categories).
  • The Obama administration extended the deadline for Americans to sign up for health coverage under the new healthcare law. The original deadline to select a health plan was extended from Dec. 15 to Dec. 23 — coverage will begin on Jan. 1, 2014. The administration offered the extra week to accommodate consumers who had trouble applying for health coverage through the healthcare.gov website.
  • According to the minutes of the Federal Reserve’s October board meeting, the central bank would consider the possibility of cutting benchmark rates to zero, down from 0.25 percent. The rate drop would result in less revenue for banks, which may refrain from taking in deposits and even charging to hold them.
  • While you’re busy getting ready for the big Thanksgiving dinner, remember that many banks will be closed for the big holiday. If there are any banking chores that need to get done by Thursday, be sure to take care of them early in the week so that you can enjoy the feast without worries.
  • Capital One 360 will uphold the annual tradition of its former brand (ING Direct) and offer a list of bank bonuses and deals on Black Friday. Typically, there are larger bonuses for opening an online checking, savings account or ShareBuilder account. The Black Friday sale is running from Nov. 29 to Dec. 2. We’ll share more details once the sale goes live.
 

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