Free checking is labeled “free” for one simple reason – the word “free” is the single most powerful word used in marketing.

Consumers love acquiring something of value that’s free.

The free checking account as we know it today was first introduced in 1982. At the time, it was launched as Totally Free Checking and later shortened to Free Checking by many of the banks and credit unions offering the account.

At the time, there were no regulations covering the use of the word “free” to describe a checking account.

Over the next eight years, more and more banks and some credit unions jumped on the free checking bandwagon. Along the way, some banks began promoting their accounts as “free” even though the consumers had to keep a minimum balance. Others required direct deposit. These perceived abuses prompted the federal government to include the free checking account in its Regulation DD Truth in Savings Act enacted in December, 1991.

The new regulations went into effect on June 21, 1993.

The new rules governing free checking appear in Section 230.8 labeled “Advertising.”

It reads: “An advertisement shall not refer to or describe an account as ‘free’ or ‘no cost’ (or contain a similar term) if any maintenance or activity fee may be imposed in the account. For purposes of determining whether a checking account can be advertised as ‘free’ or ‘no cost,’ maintenance and activity fees include:

• “Any fee imposed if a minimum balance requirement is not met, or if the member exceeds a specified number of transactions.

• “Transaction and service fees that members reasonably expect to be imposed on an account on a regular basis.

• “A flat fee, such as a monthly service fee.

• “Fees imposed to deposit, withdrawal, or transfer funds, including per-check or per-transaction charges (for example, $.25 for each withdrawal, whether by checking or in person).”

It then goes on to list other fees that are not considered maintenance or activity fees like check printing fees and balance inquiry fees.

Oddly, the new regulation failed to definitively cover whether or not requiring direct deposit eliminates the ability to label an account as free.

Still, the new Truth in Savings law made it crystal clear that for an account to be called “free” it must be free of both a monthly service fee and a minimum balance requirement.

But a lot has happened since the rules went into effect 17 years ago. An avalanche of new technology has dramatically changed the way people do their banking while the economy has taken consumers on a violent rollercoaster ride – which is still moving in unpredictable ups and downs.

In the last 11 years we’ve experienced both the expansion and bursting of the tech stock bubble and, more recently, the housing bubble. We barely escaped a world-wide economic crash while our economic future is still very uncertain.

With record high unemployment, jobs continuing to move overseas, housing prices dropping like a rock, consumers experiencing both deflation and inflation at the same time, record low interest being paid on savings, health care and education costs soaring, and many workers being under-employed, more than ever consumers both need and desire free checking.

A free checking account has much more value to many consumers today than it did when it was first aggressively marketed throughout the 1980s and most of the 1990s.

Now is definitely the wrong time to eliminate one of the most valued bank accounts ever offered. And based on the new stealth free checking accounts from BofA and Chase, senior management at both banks seem to agree.

What we are witnessing today in consumers’ purchase decision making is a new frugality which has ushered in a rush to value.

Continue Reading at Acton Marketing…

F&M placed a large banner above a storefront in a shopping complex. Banner reads FREE Checking and Competitive Home Loans with a phone number and website address.

Update About Bank of the West:

Source: BankoftheWest.com

Bank of the West is owned by the large French bank, PNB Paribas. It is very likely the decision to no longer offer free checking accounts wasn’t made locally, but in France. With the Euro under attack and Greece about to fail, most of the big European Banks are at high risk with all the money they’ve loaned Greece to help keep the country solvent.

We have a California-based bank, Bank of the West, which is really owned by a large French Bank making the decision to drop free checking. Why? How much influence did the French owners have over this decision? At least the four mega-banks are not owned by any foreign banks.

Letters went out to customers on January 3rd and accounts will begin converting from Free Checking to Easy Checking in March. One customer, Gary Dotzler, decided to take a stand and contacted us for help.

Flee The West
A Plea By A Former Account Holder

I recently learned that Bank of the West (BOTW) was changing its “Free Checking” and will soon be charging $10-a-month for their checking account service, calling it “Easy Checking”.

After a decade banking with them, I was pretty upset at the change but not surprised. It seems that banks are scrambling for new sources of revenue.

But consider recent events for a minute. A different bank, Bank of America announced a new $5 debit card fee on Sept 28th of 2012. There was a public revolt over it. By November 1st, the bank relented and cancelled plans for the new fee.

Chalk one up for the customers.

So, I’m figuring, Bank of the West saw the debacle that was the debit card fee increase and has decided on a different approach. Start charging for checking accounts. A lot of banks already do it. Maybe they’ll be able to slip this one by us.

Sure, BOTW will say there are 3 easy ways to avoid their fee:

• $1,000 average balance
• Use your debit card 10 times a month for purchases
• Have a $250 per month auto deposit.

That’s all fine and dandy but the problem is the people who don’t have the means to do these things, the less fortunate, are the ones who will disproportionally be forced to pay the fees. Even if you can avoid the fees, we should all stand in solidarity with those who cannot avoid them.

Consider this analogy. Would you shop at a gas station that offered a discount of 20-cents a gallon to those who could prove $200K in income. Of course not. It wouldn’t matter if you made over $200K a year or not. It just wouldn’t feel right. That, to me, is how this change in checking feels at BOTW. If you can afford it, you can get a discount. If you can’t, tough luck, pony up.

It also really got under my skin when I learned that BOTW was offering $100 to sign up for Free Checking as late as Sept 2011. That’s not a typo. In Sept. 2011 you got $100 to sign up for Free Checking then in Feb. 2012 they ended Free Checking. I won’t even expound on this fact because I begin to shake and it gets hard to type.

Well, I for one, am not taking it sitting down and I call on you to consider standing up too. Here’s what we can do.

1. Tell Bank of the West you’re going to change banks unless they drop the new fee. Give them four weeks notice. (March 1st, 2012 is National “Flee The West Day”).
2. Sign the online petition here
3. Forward this info to your friends and put the petition widget in your facebook or blogs (click the ¨spread the word¨ link in the petition)
4. If BOTW doesn’t drop the fee, change banks. My research suggests that checking is still free at more banks and credit unions than not.

Let’s try to chalk another one up to the customer not sitting idly by. Let’s let BOTW know we’re not happy and that we can and will take our business elsewhere. With the concerted effort of customers all throughout the west, maybe we can make a difference the same way the Bank of America customers did.

Personally, I’d love, I mean LOVE to not have to change banks. Keep in mind it only took Bank of America one month to drop its new debit card fee. That’s something to shoot for. With luck, this protest will catch on and we’ll make a difference and maybe we won’t even have to change banks. Maybe other banks will take notice and keep their free checking.

Sometimes you have to take a stand.

Thank you,
Gary Dotzler, Crested Butte, CO
Former Bank of the West Customer
E-mail 

Bank of the West Company Profile

Source: BankoftheWest.com

Bank of the West is a financially strong regional financial services company headquartered in San Francisco, California. With community bank roots dating back more than 135 years, Bank of the West is the third-largest commercial bank based in California, and operates a network of more than 700 commercial and retail banking locations throughout 19 Western, Rocky Mountain and Midwestern states as well as representative offices in New York, Tokyo and Taipei. The Bank has 9,400 employees serving the needs of 1.6 million customers.

Bank of the West is a member of the BNP Paribas Group, which is among the six strongest global banks in the world, according to Standard & Poor’s.

Source: BankoftheWest.com

Through four major business areas – Commercial Banking, Regional Banking, National Finance and Wealth Management – Bank of the West and its subsidiaries offer clients a broad range of retail, small business and commercial banking products and services to fit their evolving financial needs.

In addition to banking products, the Bank and its subsidiaries provide clients with comprehensive investment services through BancWest Investment Services, and insurance products and services through BW Insurance Agency, Inc.

Full page ad taken out of a magazine with a large “You’ll like us.” using facebook graphics and colors. Ad continues ont o read, “First Northern Bank still offers Totally FREE Checking and a FREE gift!”

Since last fall, some banks have said they have no plans to change their policies, but a number of others have modified their policies on which customers qualify for free checking. We can bet that other changes are in the works. The most likely reason for the new, stricter policies is that banks are hoping checking account fees will help offset the loss of extremely profitable overdraft fees and the possible loss of other lucrative revenue sources.

Late last month, Senator Charles E. Schumer of New York asked the Federal Reserve to “ensure that banks are allowing customers enough time and notice to understand and prepare for the new fees.”

Meanwhile, to help consumers sort through the changes, we reached out to a number of the big banks to identify which have changed or are changing their free checking policies. We call them out in our free checking account watch list below.

• Wells Fargo
• Citibank
• Fifth Third Bank
• Bank of America

Continue Reading at Bucks, New York Times

Recognizing growing frustration with big bank fees, First Community Bank (FCB) announces its commitment to giving Texas customers truly free checking accounts. The free checking has received phenomenal response, spurring record growth for the bank, which has launched a new website, www.ihatemybigbank.com. The new website gives customers a chance to vent their frustrations about big bank fees and to learn how they can find free checking in their neighborhoods. There are ten branches in the general Houston area, with four branches in north Houston and Montgomery County: 1150 W. Main at Quinn Road in Tomball; 13080 Highway 105 West in Conroe; 1400 Research Forest Dr. at Pinecroft in The Woodlands; and 18230 FM 1488 in Magnolia.

“At a time when most banks are walking away from giving their customers what they want, we’re rededicating ourselves to giving people what they want,” said Ron Coben, chief operating officer for the bank. “And that’s free checking, not some stripped down, cleverly phrased, tricky account where the checking is free only if you follow what the big banks want. Ours is just plain free.

“When a customer opens a checking account at our bank, there is no minimum deposit. There is no monthly fee. The checking account also includes a free debit card, free online banking, free online bill pay and free notary service,” said Coben. “As a part of the Allpoint network, our customers can use an ATM for free at over 43,000 locations, the largest free ATM network in the world. And we provide three free cashier’s checks per month and offer the first order of checks for free.”

Continue reading at Tomball Today

Free Checking Account Names
Created 09/25/07
Updated 02/14/12

If your bank or credit union is considering introducing a free checking account, or renaming an existing account, this list of free checking account names may come in handy.

Since 2007, we’ve been able to identify approximately 90 variations for naming a Free Checking account. The requirement for being on this list is that the word “Free” must appear in the account name.

Just because the name you wish to use is on this list doesn’t mean you can’t use it in your market area. Some of these accounts have been discontinued since being added to the list. One purpose of this list is to provide you with ideas for naming your Free Checking account.

From a branding and marketing perspective, we believe the most effective free checking account name is [Bank Name] Free Checking. For example: Generic Bank Free Checking.

The Master List of Free Checking Account Names:

Absolutely Free Checking
Always Free Checking
America’s Best Free Checking!
Asterisk-Free Checking
ATM Anywhere Free Checking
[Bank Name] Free Checking (e.g., Valley FREE Checking)
Best Free Checking
Better Free Checking
Better Than Free Checking
Beyond Free Checking
Big Money Free Checking
Breakfree! Checking
Breakfree! College Student Checking
Build-to-Order Free Checking
Carefree Checking
Chase Free CheckingSM with Direct Deposit
Community Free Checking
Completely Free Checking
Customer First Free Checking
Direct Free Interest Checking
Easy Free Interest Checking
Express Free Checking
1st Free Checking
Fabulous 50 Free Interest Checking
Fantastic 50+ Free Interest Checking
Fee Free Checking
First Class Free Checking
flat out free checking
Forever Free Checking
Free Business Checking
Free Cash Back Checking
Free Checking
Free Checking 2.0
Free Checking for Life
Free Checking Plus
Free Checking with Extras
Free Checking with Cash Back Option
Free Checking with Free Checks Option
Free Checking with Interest
Free Checking with NO ATM Fees Option
Free Checking with Rewards
Free e-Checking
Free e-Power Checking
Free For All
Free For Life! Checking
Free For You Checking
Free Green Checking
Free Hometown Rewards Checking
Free Interest Checking
Free Key Rewards Checking
Free Personal Checking
Free Prestige Plus Checking
Free Prime Time Checking
Free Rewards Checking
Free Senior Checking
Free! Smart Money Checking
Free Student Checking
Free Super Interest Checking
Free With Direct Deposit Checking
Free Youth Checking
FREEdom Checking
Freedom 50 Checking
Freedom Checking
Freedom Plus Checking
FreeNet Checking Account
50+ Free Interest Checking
50+ Gold Free Checking
Gold Free Checking
[Bank name] Freedom Checking (for high school students only)
High Interest Free Checking
Home Free Checking
Lifetime Free Checking
Lion Power Free Checking
More Than Free Checking
My Free Checking
OPT Free Checking
Personal Free Checking
Positively Free Checking
Really Free Checking
Really! Free Checking
Senior Free Checking
Simply Free Checking
Smart Free Checking
Standard Carefree Checking
Stress Free Checking
Totally Free Business Checking
Totally Free Checking
Totally Free Checking PLUS
Truly FREE Checking
VIP Free Interest Checking
Virtually Free Checking

NOTE: If you are aware of a Free Checking account name that does not appear on this list, fill out this form: