topic Re: PenFed now offers a free checking account in Personal Finance

PenFed now offers a free checking account

SouthJamaica — Fri, 07 Jan 2022 04:34:38 GMT

Until now, PenFed has been the only credit union I know that doesn't offer a free checking account. The Access America account was the only checking account they offered, and it assessed a stiff $10 penalty for any month in which one did not have either a minimum balance of $500 or direct deposits of $500 ("direct deposits" being loosely defined).

Now I see they are offering "free checking". The website says:

PENFED FREE CHECKING

You asked, we listened

Managing your money has never been easier

Zero monthly fees
Zero ATM fees

Well I'm glad they finally "listened"

Thanks to @Anonymous for bringing this to my attention.

Re: PenFed now offers a free checking account

Royalbacon — Fri, 07 Jan 2022 04:45:42 GMT

@SouthJamaica wrote:
Until now, PenFed has been the only credit union I know that doesn't offer a free checking account. The Access America account was the only checking account they offered, and it assessed a stiff $10 penalty for any month in which one did not have either a minimum balance of $500 or direct deposits of $500 ("direct deposits" being loosely defined).

Now I see they are offering "free checking". The website says:

PENFED FREE CHECKING
You asked, we listened
Managing your money has never been easier

Zero monthly fees
Zero ATM fees
Well I'm glad they finally "listened"

Thanks to @Anonymous for bringing this to my attention.

They're not the only that didn't offer a free checking. Alaska USA Federal Credit Union doesn't, Elements Financial and GTE Financial all don't offer free checking. Alaska USA also has $50 annual fees on all their cards unless you have a checking account with them

Re: PenFed now offers a free checking account

Anonymous — Fri, 07 Jan 2022 04:46:41 GMT

Your posts are always informative and helpful, so thank you @SouthJamaica !!!

I don't know if "we" asked, or like you stated if they realized they were the only credit union to not offer a free checking account.

Re: PenFed now offers a free checking account

SouthJamaica — Fri, 07 Jan 2022 04:59:14 GMT

@Royalbacon wrote:
@SouthJamaica wrote:
Until now, PenFed has been the only credit union I know that doesn't offer a free checking account. The Access America account was the only checking account they offered, and it assessed a stiff $10 penalty for any month in which one did not have either a minimum balance of $500 or direct deposits of $500 ("direct deposits" being loosely defined).

Now I see they are offering "free checking". The website says:

PENFED FREE CHECKING
You asked, we listened
Managing your money has never been easier

Zero monthly fees
Zero ATM fees
Well I'm glad they finally "listened"

Thanks to @Anonymous for bringing this to my attention.
They're not the only that didn't offer a free checking. Alaska USA Federal Credit Union doesn't, Elements Financial and GTE Financial all don't offer free checking. Alaska USA also has $50 annual fees on all their cards unless you have a checking account with them

Hard to believe in this day and age that there are credit unions which fail to offer free checking. Well, at least their ranks have been thinned by one.

Re: PenFed now offers a free checking account

Royalbacon — Fri, 07 Jan 2022 05:54:11 GMT

Theres a credit union in Wisconsin (Summit Credit Union) The checking is free but you pay a $5/year fee for having a debit card... I know $5/year isn't a lot but sheesh, who charges for having a debit card? Imagine the uproar if one of the big, bad "evil" banks like Wells Fargo or Bank of America ever decide to implement such a fee...

Re: PenFed now offers a free checking account

EAJuggalo — Fri, 07 Jan 2022 11:42:40 GMT

It wasn't all that long ago that most banks didn't offer free checking, back when people wrote checks for things. In 2011 Wells Fargo didn't have a free checking product that was available to everyone. They charged my wife and I $13/month for the honor of being ripped off by them for a few months before I caught it, it was at that time I took over the finances from my new wife.

Re: PenFed now offers a free checking account

tortoise_credit — Fri, 07 Jan 2022 18:49:38 GMT

I wonder if they will allow changing from Access America to the Free Checking, or if one has to open a new account. I'll probably call and find out in a month or so unless anyone else has any DP.

Re: PenFed now offers a free checking account

outofcredit — Fri, 07 Jan 2022 19:09:05 GMT

@tortoise_credit wrote:
I wonder if they will allow changing from Access America to the Free Checking, or if one has to open a new account. I'll probably call and find out in a month or so unless anyone else has any DP.

Just called in to Penfed to see if I could convert my two Access America checking accounts to the free checking account. They don't allow straight conversions but I was able to close both Access America accounts and open a new free checking account. Representative did all the closing of accounts and opening of new account while I was on the phone. He was also able to link my current debit card and existing overdraft lines of credit to the new account. Logged in after conversation and new account was posted. That will actually save me $20 a month in maintance fees. Thanks @SouthJamaica for the heads up!

Re: PenFed now offers a free checking account

tortoise_credit — Sat, 08 Jan 2022 02:02:51 GMT

@outofcredit Thanks for the info. Excuse my ignorance on this, but does closing the Access America account affect chexsystems at all? I just opened the Access America let month, and it's in good standing. I ask because I wanted to join Affinity soon, and until now I've really only had one checking/savings opened at a time.

Re: PenFed now offers a free checking account

outofcredit — Sat, 08 Jan 2022 02:37:41 GMT

@tortoise_credit wrote:
@outofcredit Thanks for the info. Excuse my ignorance on this, but does closing the Access America account affect chexsystems at all? I just opened the Access America let month, and it's in good standing. I ask because I wanted to join Affinity soon, and until now I've really only had one checking/savings opened at a time.

I dont think it will affect your status with chexsystems. Generally, I have found that chexsystems focuses on negative information related to checking accounts that is reported. While they do keep a tally of the number of "inquires" for new checking accounts you've had I think most banks check your chexsystem report for the amount of negative banking information you have on file. YMMV, but that has been my experience. I have over 10 checking accounts opened at most of the major banks and several credit unions. So far I haven't been denied due to chexsystems.

Re: PenFed now offers a free checking account

SouthJamaica — Sat, 08 Jan 2022 05:24:50 GMT

@outofcredit wrote:
@tortoise_credit wrote:
@outofcredit Thanks for the info. Excuse my ignorance on this, but does closing the Access America account affect chexsystems at all? I just opened the Access America let month, and it's in good standing. I ask because I wanted to join Affinity soon, and until now I've really only had one checking/savings opened at a time.
I dont think it will affect your status with chexsystems. Generally, I have found that chexsystems focuses on negative information related to checking accounts that is reported. While they do keep a tally of the number of "inquires" for new checking accounts you've had I think most banks check your chexsystem report for the amount of negative banking information you have on file. YMMV, but that has been my experience. I have over 10 checking accounts opened at most of the major banks and several credit unions. So far I haven't been denied due to chexsystems.

Yes it also focuses on inquiries.

And many of us have been turned down for deposit accounts because of too many Chex System recent inquiries.

So it's important to know if closing the Access America account and opening the Free account will result in a Chex inquiry.

Re: PenFed now offers a free checking account

outofcredit — Sat, 08 Jan 2022 06:25:49 GMT

@SouthJamaica wrote:
@outofcredit wrote:
@tortoise_credit wrote:
@outofcredit Thanks for the info. Excuse my ignorance on this, but does closing the Access America account affect chexsystems at all? I just opened the Access America let month, and it's in good standing. I ask because I wanted to join Affinity soon, and until now I've really only had one checking/savings opened at a time.
I dont think it will affect your status with chexsystems. Generally, I have found that chexsystems focuses on negative information related to checking accounts that is reported. While they do keep a tally of the number of "inquires" for new checking accounts you've had I think most banks check your chexsystem report for the amount of negative banking information you have on file. YMMV, but that has been my experience. I have over 10 checking accounts opened at most of the major banks and several credit unions. So far I haven't been denied due to chexsystems.
Yes it also focuses on inquiries.
And many of us have been turned down for deposit accounts because of too many Chex System recent inquiries.
So it's important to know if closing the Access America account and opening the Free account will result in a Chex inquiry.

Unfortunately, the spiel the representative gave me only indicated that no negative impact to my credit would occur by opening the new free checking. I didn't ask about any impact to my chexsystem report as that is one report I don't really follow. I have pursued checking SUB's in the past opening and closing several accounts within a year but I always refrain from any new accounts the following year.

Re: PenFed now offers a free checking account

SouthJamaica — Sat, 08 Jan 2022 21:09:34 GMT

@outofcredit wrote:
@SouthJamaica wrote:
@outofcredit wrote:
@tortoise_credit wrote:
@outofcredit Thanks for the info. Excuse my ignorance on this, but does closing the Access America account affect chexsystems at all? I just opened the Access America let month, and it's in good standing. I ask because I wanted to join Affinity soon, and until now I've really only had one checking/savings opened at a time.
I dont think it will affect your status with chexsystems. Generally, I have found that chexsystems focuses on negative information related to checking accounts that is reported. While they do keep a tally of the number of "inquires" for new checking accounts you've had I think most banks check your chexsystem report for the amount of negative banking information you have on file. YMMV, but that has been my experience. I have over 10 checking accounts opened at most of the major banks and several credit unions. So far I haven't been denied due to chexsystems.
Yes it also focuses on inquiries.
And many of us have been turned down for deposit accounts because of too many Chex System recent inquiries.
So it's important to know if closing the Access America account and opening the Free account will result in a Chex inquiry.
Unfortunately, the spiel the representative gave me only indicated that no negative impact to my credit would occur by opening the new free checking. I didn't ask about any impact to my chexsystem report as that is one report I don't really follow. I have pursued checking SUB's in the past opening and closing several accounts within a year but I always refrain from any new accounts the following year.

I requested information on switching my Access America account to a Free Checking account. Was told it can't be done, that I have to apply for the free checking account, and then close the Access America account when it's at zero balance.

Sounds to me like this would mean (a) a new account number and (b) a Chex inquiry. If so, that would make it quite a nuisance.

Re: PenFed now offers a free checking account

Yasselife — Sun, 09 Jan 2022 02:37:20 GMT

@SouthJamaica

Good news. What are your thoughts about Penfed ?

Re: PenFed now offers a free checking account

SouthJamaica — Sun, 09 Jan 2022 03:24:41 GMT

@Yasselife wrote:
@SouthJamaica
Good news. What are your thoughts about Penfed ?

It has its good points and its bad points. I find their customer service to be a little stiff and unhelpful.

Re: PenFed now offers a free checking account

ccquest — Sun, 09 Jan 2022 03:43:29 GMT

Just a point to make, but if your Access America Checking account is what qualifies you for boosted earnings on your credit cards...make sure you don't switch to this (although depending on spend you could come out ahead by not paying a maintenance fee).

Re: PenFed now offers a free checking account

tortoise_credit — Sun, 09 Jan 2022 07:03:04 GMT

@ccquest wrote:
Just a point to make, but if your Access America Checking account is what qualifies you for boosted earnings on your credit cards...make sure you don't switch to this (although depending on spend you could come out ahead by not paying a maintenance fee).

It does seem the Honors Advantage requirements for the free checking account are the same requirements to avoid fees for Access America. So the free checking is probably better in the cases where one's balance may dip below $500 and who has no direct deposit.

"Members with a qualifying Free Checking account must also 1) maintain a minimum $500 daily balance OR 2) set up monthly direct deposits of $500 or more to maintain Honors Advantage Eligibility. A minimum balance or direct deposit is not required to maintain a Free Checking account."

From footnote at: https://www.penfed.org/credit-cards/honors-advantage

Personally I wanted to downgrade because I may not re-apply for the PCR for some time, and could use to move the $500 sitting there out.

Re: PenFed now offers a free checking account

SouthJamaica — Thu, 13 Jan 2022 14:25:48 GMT

@ccquest wrote:
Just a point to make, but if your Access America Checking account is what qualifies you for boosted earnings on your credit cards...make sure you don't switch to this (although depending on spend you could come out ahead by not paying a maintenance fee).

According to the site, the free checking also gets you the boosted earnings on the PCR card.

Update: Now I see that the site has different contradictory statements. In one part of the site it states that maintaining the free checking account qualifies you for the Honors Advantage bonus. In another part of the site it states that you must have minimum balance of $500 or make direct deposits of $500 per month in the free checking account in order to get the Honors Advantage bonus.

Re: PenFed now offers a free checking account

difringe — Sun, 09 Jan 2022 16:31:42 GMT

@tortoise_credit wrote:
@ccquest wrote:
Just a point to make, but if your Access America Checking account is what qualifies you for boosted earnings on your credit cards...make sure you don't switch to this (although depending on spend you could come out ahead by not paying a maintenance fee).
It does seem the Honors Advantage requirements for the free checking account are the same requirements to avoid fees for Access America. So the free checking is probably better in the cases where one's balance may dip below $500 and who has no direct deposit.

"Members with a qualifying Free Checking account must also 1) maintain a minimum $500 daily balance OR 2) set up monthly direct deposits of $500 or more to maintain Honors Advantage Eligibility. A minimum balance or direct deposit is not required to maintain a Free Checking account."
From footnote at: https://www.penfed.org/credit-cards/honors-advantage

Personally I wanted to downgrade because I may not re-apply for the PCR for some time, and could use to move the $500 sitting there out.

Good thing you read the fine print there, bc I had assumed from the large print that you could just close the Access America account, open a Free Checking account, and get the 2% back on the PCR for having the Free Checking, without any qualifications. Still worth it for me to close the Access America account though, I'll just make sure to meet the requirements for a couple of months before I app for the PCR.

Re: PenFed now offers a free checking account

TheRedHat — Thu, 20 Jan 2022 05:12:54 GMT

Thanks for this post! Just opened a free checking account with them yesterday!