[net.consumers] Capitol Federal Savings redefines "free"

jon@boulder.UUCP (Jon Corbet) (10/22/84)

[This space for rent]

For a few years now I have had a "totally free" account at Capitol Federal
Savings, and I have been fairly happy with it.  However, I got a note in the
mail a while back notifying me of the new type of "free" account I was going
to have.  The following is a direct quote:

	Free 5 1/4 % checking is priced as follows:
		Monthly Service Charge
	o Free	when your maintain a $1000 minimum balance in your account
	o $2.50 when your balance falls below $1000 but no lower than $700
	o $5.00 when your balance falls below $700, but no lower then $400
	o $7.50 when your balance falls below $400

[end of quote]
How can they call this account free?  This is my day-to-day account, with
relatively low balances, and I would be paying $7.50 a month for a "free"
account!  Furthermore, if one maintains the $1000 minimum, then one has 
locked up a fair amount of money at a ridiculous interest rate.  When I
have that much money that I don't intend to spend, I certainly will not
keep it in a 5% interest account.  If one takes my money market account,
which gets 9-3/4%, it becomes apparent that I would be paying 4-1/2%
interest on my $1000, or roughly $50/year, to maintain the minimum balance.
This is free?

I have closed my account.

--
Jonathan Corbet
National Center for Atmospheric Research
{seismo|hplabs}!hao!boulder!jon

ron@brl-tgr.ARPA (Ron Natalie <ron>) (10/24/84)

> For a few years now I have had a "totally free" account at Capitol Federal
> Savings, and I have been fairly happy with it.  However, I got a note in the
> mail a while back notifying me of the new type of "free" account I was going
> to have.

Consider yourself lucky to live in Colorado.  Several innovative banking
ideas are common in Colorado that are either non-existant or very slow
coming to the rest of the country.  You see, CO is one of these places
that doesn't allow regular banks to have branches.  Recently when Savings
and Loans (which can have branches) were allowed to have checking accounts,
it through the banks into a furor.  One outgrowth is the PLUS system.
The other is the big WAR between various banks to give you free everything
and interest at the same time.  It was nice.  Typical checking in Maryland
is only free if you have $400 in your checking (no interest!), $200 in a
rotten 5% non-compounded non-accessable savings account (I have no idea why
commercial banks in Maryland even bother with savings accoungs), or over
$1000 in a 5-1/4% interest paying checking account.

I settle for a hybrid.  I keep the $200 in a commercial bank with convenient
automated teller machines.  I write all my checks on my Credit Union Share
Draft (free with good interest) account.  I still have my PLUS cards.  The
machines are beginning to POP up around here.

-Ron