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Path: utzoo!linus!philabs!cmcl2!seismo!hao!cires!boulder!jon
From: jon@boulder.UUCP (Jon Corbet)
Newsgroups: net.consumers
Subject: Capitol Federal Savings redefines "free"
Message-ID: <237@boulder.UUCP>
Date: Mon, 22-Oct-84 11:29:01 EDT
Article-I.D.: boulder.237
Posted: Mon Oct 22 11:29:01 1984
Date-Received: Wed, 24-Oct-84 07:45:45 EDT
Reply-To: jon@boulder.UUCP (Jon Corbet)
Organization: National Center for Atmospheric Research
Lines: 32


[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