Walmart Bank: Free Checking — No Overdraft Fees

The Tea Party Economist reports:

Walmart is about to give traditional banks a run for our money.

For a $9.95 a month fee, if you don’t have $500 in the account, you will be able to get free checking — no extra fees. The banks have been cleaning up on overdraft charges and bounced check charges. In 2013, they pulled in $32 billion from overdraft fees.

That source of easy money is about to be challenged.

I am not sure banks really want the kinds of customers Walmart caters to. They want middle class customers, upper middle class customers, and rich customers. They want the 20% of the customers who have 80% of the money. I have a friend in Arkansas whose job at a major regional bank is to find and attract these people. It is a sophisticated business.

The free market caters to people at the bottom. The dollar stores do. Walmart does. They make high quality products and services available to people who have less money. The name of this game has always been the same: price competition. In four words: Save money. Live better.

This will put pressure on banks. It will also put pressure on dollar stores. This is good for customers.

We are sure the banking cartel isn't happy with this one.