Last week, Bank of America (BAC) announced that they will start charging a $5 monthly fee on their debit cards, and it seems like other banks will be charging similar debit card fees in the months to come. This $5 monthly fee adds up to an annual fee of $60! That's a lot of money, especially if you don't use your debit card that often. I always thought that using credit cards was a better way to make purchases compared to debit cards, and this news article only reinforced my view. Credit cards offer better protection than debit cards when it comes to identity theft, plus they reward you with cash rebates, rewards points or airline miles when you use your credit card to pay.

As is expected, this new debit card fee hasn't been welcomed kindly by Bank of America customers; one TV host and news journalist even cut up her debit card on live television to show her indignation. BofA stock fell by more than 3.5% on Friday, and the bank website was apparently hacked into on Friday even though it was denied.

On the flip side, now that some banks are charging fees to those who have debit cards, credit cards are offering even more generous rewards than they used to, many of them with no annual fee.

  • Chase Freedom<sup>®</sup>
    • Our Rating:
    • Our Rating:
    • 4.85/5
    • User Rating:
    • 3.00/5
    Rate This Card

    Earn a $150 Bonus after you spend $500 on purchases in your first 3 months from account opening

    Why we like it
    • Earn a $150 Bonus after you spend $500 on purchases in your first 3 months from account opening
    • Earn 5% cash back on up to $1,500 in combined purchases in bonus categories each quarter you activate
    • Unlimited 1% cash back on all other purchases - it's automatic
    • 0% Intro APR for 15 months from account opening on purchases and balance transfers, then a variable APR of 15.49-24.24%. Balance transfer fee is 5% of the amount transferred, $5 minimum
    • Enjoy new 5% categories every 3 months
    • Cash Back rewards do not expire as long as your account is open
    • No annual fee
    APPLY NOWAt Chase's secure website

    Intro APR

    0% Intro APR for 15 months from account opening on purchases and balance transfers

    Regular APR

    15.49% - 24.24% Variable

    Annual Fee

    $0

    Credit Required

    Excellent
    APPLY NOWAt Chase's secure website
    Why we like it
    • Earn 5% cash back on up to $1,500 in combined purchases in bonus categories each quarter you activate. Enjoy new 5% categories every 3 months. Unlimited 1% cash back on all other purchases.
    We least like
    • 5% cash back on combined purchases in bonus categories capped at $1,500 per quarter.
    • Has foreign transaction fees.

    Intro APR

    0% Intro APR for 15 months from account opening on purchases and balance transfers

    Regular APR

    15.49% - 24.24% Variable

    Annual Fee

    $0

    Credit Required

    Excellent
    • Earn a $150 Bonus after you spend $500 on purchases in your first 3 months from account opening
    • Earn 5% cash back on up to $1,500 in combined purchases in bonus categories each quarter you activate
    • Unlimited 1% cash back on all other purchases - it's automatic
    • 0% Intro APR for 15 months from account opening on purchases and balance transfers, then a variable APR of 15.49-24.24%. Balance transfer fee is 5% of the amount transferred, $5 minimum
    • Enjoy new 5% categories every 3 months
    • Cash Back rewards do not expire as long as your account is open
    • No annual fee
    APPLY NOWAt Chase's secure website