Just because the big banks have nixed their debit card charges doesn’t mean bank customers are fee-free, and many major banks are now instituting checking account charges that are raising eyebrows.
For instance, starting this December Citibank
(Stock Quote: C
) will charge $20 a month to customers with midtier checking accounts unless the customer has combined balances of at least $15,000 in checking, savings and investment accounts or loan balances. Previously, the fee was waived for customers with this type of account who had combined balances of $6,000.
TD Bank (Stock Quote: TD
) also plans to start charging a fee this month – a $9 fee for any savings account customer who makes more than six withdrawals or transfers from that account in a given month. The fee was instituted in response to Regulation D, a federal regulation that discourages customers from using their savings accounts as checking accounts by capping the number of monthly withdrawals at six. Bank of America (Stock Quote: BAC
) is also responding by charging fees
if a customer makes more than three savings account withdrawals in a given month when the balance is below $2,500, and the bank will convert a customer’s savings account to a checking account if more than six withdrawals are made in a month.
But there is some good news for JPMorgan Chase
(Stock Quote: JPM
) checking-account holders. Last month the bank ended a test program in Oklahoma in which consumers were charged a $10 monthly checking account fee that couldn’t be waived through direct deposits or online banking requirements. The bank will also call off a $15 monthly checking account fee – tested in Atlanta – that could be waived only if a customer maintains a minimum daily balance of $1,500 or a combined $5,000 in deposit and investment accounts.
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