Bank of America (BofA) is to ramp up its drive
to charge checking account customers monthly fees for all but its
most affluent clients.
BofA will charge customers a monthly fee of $9
for its Essentials account if they visit a branch teller or receive
paper statements.
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Customers who elect to use BofA’s eBanking
account, launched last year, will continue to receive free checking
if they use only the bank’s online channel and choose
to receive electronic statements.
BofA customers who maintain daily balances of
at least $2,000 or who hold a BofA credit card or mortgage will
also avoid monthly charges.
According to Bankrate.com, the percentage of
financial institutions offering free checking accounts dropped to
65% in 2010 from 76% in 2009.
By contrast, the so-called grandfather of free
banking, Minnesota-based regional lender TCF Financial, which
founded the concept way back in 1986 with the launch of its
“totally free checking” campaign, has reversed its decision of last
year to end free checking.
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By GlobalDataConfirming the U-turn, Mark Jeter, MD of
branch banking at TCF said: “TCF will eliminate the minimum balance
requirements and offer even more ways to avoid the monthly
maintenance fees for our checking products, including our signature
product, TCF Convenience Checking.”
