Stick It to Your Bank

It's time to do something about it. Here are my three ways to deal with these Goliaths.

• Vote with your feet. This one's simple: leave. Banks operate with the mentality that they can push you around. Why? Because it's too much time, work and trouble for you to gather your stuff and move somewhere else.
  They've often got it right, for it is a hassle to move, especially if you have checking, savings, credit cards, mortgages and equity lines all with the same institution. And -- bigger problem -- most traditional banks offer pretty much the same thing.

  But here's what they forget: There are alternatives to traditional banks. Credit unions have been around for years and generally offer better deals across the board. They're getting bigger, so you get geographic coverage, and they're making deals with each other and waiving ATM fees to overcome some of their inherent disadvantages.

  And Internet banks and banking services tied to brokerages, such as E*Trade (ETFC Quote) Bank, have, in a similar way, become more competitive.

• Let them know you exist. Moving is one option. Threatening to move is quite another.

  For those of you, like me, who would rather fight than switch, it shouldn't be a surprise that a bank will usually try at least a little to hold on to your business. It knows that if you leave, it'll have to invest precious resources just to replace you, and it won't exactly help its reputation -- especially if you're a good customer (more on that below).

  So here's what you do. Next time something bad happens, call. Be nice about it, but be firm and businesslike -- let them know you're really unhappy about the $35 XYZ fee and that you don't believe, as a good customer, you should be responsible for it.

  Many agents are empowered to address your issue, but it also helps to ask for a manager. You'd be surprised what they can do if they want to -- and if you don't abuse the privilege. If nothing else, they'll help you migrate to a preferred customer status so that the issue, whatever it was, doesn't happen to you again.

• Become a better customer. What? Stick it to your bank by becoming a better customer? Hmm, is that logical?

  Here's the reality. If you elevate yourself above the masses -- which today usually means signing up for some kind of package deal including checking, savings, loan and even brokerage services -- guess what? You'll get rid of an awful lot of those fees.

  As an example, Wells Fargo (WFC Quote) has several programs, two of which I'll mention: The Portfolio Management Account (PMA) and the Complete Advantage account.

  The PMA requires a minimum of $25,000 in a savings or investment account. You can get a bit better than 3% interest on this account, but the real payback is eliminating a broad assortment of fees, including checking, check printing, online banking and a host of other banking services. You can also get overdraft protection for $10 per day of overdrafts, instead of $34 per transaction. Finally, you get preferred interest rates on both savings and loan products. You may save hundreds over the course of a year.

  The similar Complete Advantage account requires $5,000, and it features a required automatic $75-per-month transfer from checking to savings.

  These accounts give you a good way to manage household cash, including your emergency reserves. Most large banks offer similar products.

Maybe these choices -- from taking a hike to cozying up to the Goliath you once so despised -- seem too broad. But it's all part of becoming a good consumer, and you may save a lot of money and grief in the process.

And you just might be treated with the dignity you deserve in the first place.