It's getting more expensive to have a checking account. The monthly fee on Bank of America's basic MyAccess checking account rose this week to $12, from the previous $8.95. And more changes are in store for customers of the country's largest bank.
Details
Customers with the MyAccess account can still avoid the monthly fee by setting up a monthly direct deposit of at least $250 or maintaining a balance of $1,500.
The bank says customers were notified of the fee hike earlier this year.
Another option that skirts the fee increase is the ebanking account, which requires customers to do their banking online and opt for electronic statements.
Bank of America introduced the ebanking option last summer ahead of a new menu of accounts slated for a countrywide rollout by the end of the year.
In January the bank began testing checking accounts with a variety of fee options in Arizona, Georgia and Massachusetts. Fees vary depending on the state, but range from $6 to $25.
Background
Bank of America says its fee hike reflects the greater services it is providing, such as spending alerts and mobile banking. But the move is also in line with the industry's pullback on free checking.
The availability of free checking accounts with no strings attached shrank last year for the first time since 2003. Only 65 percent of checking accounts were free, down from 76 percent in 2009, according to Bankrate.com.
The reduced availability comes as a new regulation is set to dramatically limit the revenue banks collect from checking accounts. The rule, which was passed as part of the financial overhaul last year, will cap the fees banks can collect from merchants whenever customers swipe their debit cards. Banks say the move could slash the $16 billion in fees they collect by as much as much as 90 percent.
Another regulation that went into effect last summer prohibits banks from enrolling customers in overdraft programs without their consent. That is expected to sharply limit how much banks collect in overdraft penalty fees.
