Due to the regulations that will limit debit and overdraft fees, Bank of America (BAC) and a lot of the larger banks in the United States are changing their checking account fee model later this year and customers could find themselves paying some large fees for services.
Bank of America customers with basic checking accounts will have to pay $6 to $9 per month for a basic checking account with a debit card. Bank of America calls this program Bank of America Essential. Bank of America currently charges a fee of $8.95 to customers unless the customer uses direct deposits or maintains an account balance of $1,500, according to its website.
Bank of America's Enhanced account will cost $12, the Premium account will cost $15 and lastly, $25 for the Platinum Privileges account, which is designed for customers with deposits of $50,000 or more. These last three accounts all are for customers who also have mortgages, savings accounts or credit cards with the bank. Customers who choose these accounts can avoid paying fees if they do things like maintain a balance of over $2,000 or use direct deposit or their credit card monthly, according to an Associated Press article on NPR (January 5, 2011, 07:29 pm EST).
Bank of America is not the only bank changing fees on customers. Chase announced that it would also be increasing its checking account fees this February. JPMorgan customers with the most basic account will pay a $6 monthly fee. Those with Chase Free Extra Checking accounts will now be charged a $12 fee and their accounts will be called Chase Total Checking. Fees for both of these accounts can be waived if a customer makes a direct deposit of $500 or more, make five or more debit-card purchases a month.
Wells Fargo stopped offering free checking this summer. It now charges monthly fees of $5 unless you make deposits of at least $250 or keep a balance of $1,500 in your checking account.
Citigroup also has already increased fees, charging $8 for a basic checking account unless you perform at least five of the following monthly: make a direct deposit, make a debit card purchase, make a bill payment, make an ACH (Automated Clearing House) payment, make cash with draws at ATMs, auto deductions and checks paid.
Sound like a mind spin? Want to avoid those fees? Check out smaller regional or community banks such as PNC, US Bancorp or ING. These smaller banks are a lot less likely to charge fees and will offer more customer service and free add-ons than the larger banks without the fees attached.
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