New Banks Fees

Most Major Banks are ending their free checking accounts programs. Since the CARD act was implemented last year. The rules banned a handful of fees, including certain overdraft and excessive late charges. Others prevent over-the-top interest rate hikes. Most recently, the Federal Reserve proposed a cap on debit fees (what the bank charges retailers when customers swipe their cards.) It is clear that Banks are trying to find ways to charge customers to recuperate their lost. Most of those banks received some sort of Tax payer money to help them while in crisis. Most of the banks have posted profits and emerged from the crisis. Bank of America is planning on charging $8.95 on most checking accounts unless you are able to maintain a balance of $1500 or make at least one direct payment. You can also opt for their enhance checking and maintain a $5000 balance otherwise you will be charged a fee of $19. JP Morgan Chase will charge you a $12 monthly fee for new accounts unless you maintain a checking account balance of $1,500, make monthly direct deposits of at least $500, or keep a $5,000 balance across all deposit accounts -- including checking, savings and investments. In case you already have a chase account, you will be charged a $6 monthly fee unless you make a direct deposit at least $500 per month or make five debit card purchases. Currently, customers can qualify by making any direct deposit. Citibank is planning on charging up to $30 monthly fee. The basic checking account charges a monthly maintenance fee of $8 on unless you complete five or more monthly transactions, including direct deposit, debit card purchases, bill payments, check payments and ATM cash withdrawals. Another offering, the Citibank account, charges a fee of $20 unless you maintain a $6,000 monthly balance in linked accounts including checking, savings and investments. Wells Fargo has ended its free checking account since July 2010. Customers have to pay a $5 monthly fee unless you are able to maintain a $1500 balance or make a $250 monthly deposit. Other accounts from Wells Fargo charge up to $30 monthly fee unless certain requirements are met (higher combined balance, making transfer…). Wachovia Bank has maintained its free account but has increased other fees to make up for it. Now when it comes to HSBC, nothing has changed. Customer are still getting charged $3 monthly fee. Choice account users can avoid a monthly maintenance fee of $8 by using direct deposit, keeping at least $1,500 a month in deposit account balances or maintaining a balance of $5,000 across all accounts including deposit accounts, credit lines and investments.
We can still get free checking account at smaller banks, Credit Union and online banks. But with those banks, you could be limited to locations, ATMs, Services. Which could cause you extra fees or some inconvenience in case you travel outside of the bank’s networks.

Now the question is why should we be charged to give the Banks money that they will use to lend us and make more money (interests), they will invest, they will lend to each other in the form of overnight loan to satisfy the Fed requirements…?