Free May Be Thing of the Past At Your Bank

November 18, 2009 by tisha

g Digg plugin, Author : Yong Mook Kim Website : http://www.mkyong.com/blog/digg-digg-wordpress-plugin/ -->

Following the increase in fees concerning bank credit cards, it looks like many banks will also be doing away with free services like checking and savings accounts. Banks, such as Citibank, will now be tacking on fees to previously free services. Citibank customers that use the EZ Checking Account  used to have fees waived if a direct deposit of payroll was established. Now customers will find a new $7.50 fee each month if they do not keep at least $1,500 in the account. These new fee charges will be starting in February 2010.

In fact, many banks who used to offer options for keeping fees at bay will now be dissolving those incentives. Some will maintain some level of free services options. Bank of America who maintained fees on checking accounts will be raising its price in June by $3 from the original $5.95; however, Bank of America will continue to waive fees for customers who keep a $1500 balance, open an account online, or for those who set up direct deposits.

Congress is currently mulling over legislation that would put a limit on a bank’s overdraft fees for customer checking accounts. The banking industry has essentially been enrolling people in overdraft protection programs without clear information of opt-out procedures.  Plus, many bank overdrafts can run customers a fee of $35 or more. The profit made on these program fees are an important source of revenue for banks (about $29 million in 2007) . If legislation should cut into that revenue, banks will need to reinstitute fees back into most services. In addition to this legislation, banks as a whole are being looked at more closely because of all the other fees that are being imposed on customers.

There are plans for many banks to begin announcing their intention to add additional fees to previously free services as well as make the necessary adjustments to their overdraft protection programs in the next few months. Customers who do not regularly monitor their monthly bank statements should make a concerted effort to check for changes in their accounts. It is also advisable that consumers not discard mailed communication from their bank, as what many perceive to be junk , is actually important information for consumers about imminent changes being made to their account or valuable opt-out information for bank-sponsored services or programs.


Blog Traffic Exchange Related Websites

Comments are closed.