Addicted To Fees; Bank Of America Wants To Start A $10 Monthly Fee Again
Bank of America wants to roll out new fees this year, up to $10 a monthly for a basic checking account unless you maintain a minimum balance or are willing to do most of your banking online and not call customer service or use a teller according to the Wall Street Journal and other reports.
Last year the same bank along with several others like Wells Fargo and Chase rolled out a new set of "convenience" fees, $5 per month to use your debt card, aim at improving revenue to make up for the loss of revenue off of NSF fees and other reforms that were implemented by congress.
After the public backlash, Bank of America pulled back on the debt card fee, but did quietly manager to implement other fees. The biggest problem is that after congress implemented financial reforms in the wake of the housing meltdown, banks could no longer charge consumers for many things, had to change the way they paid your checks and charges, and reduce other fees. Bank of American had $15 billion in revenue on NSF fees along in 2009, and they are looking for another way to make up that lost revenue to please their shareholders.
"I feel like Bank of American lost it's roots when they were originally the Bank of Italy in San Francisco and were known to be good to customers and didn't try to screw customers over and put a happy face on it saying it's for the customers best interests" says Brian Baldwin.
Economist Rose Hamfield says "you need to see if you're bank really has your best interest in mind, there are principally two type of banks, a consumer bank such as Bank of America, Wells Fargo, Chase and others, who primarily make a significant amount of their money off their banking deposit customers with things like fees, and then there are commercial or investment banks who generally do not charge their customers to bank with them and make most of their money off using your money for loans and other investments and generally have a much higher level of customer service."
The drawback to those banks with no fee's? Usually they are regional at best as far as a brick and mortar presence, so your choice of which one is limited. Some however have expanded their offerings and have unusual practices that may it easy to bank with them even if they are not local such as USAA and Ally.