Bank of America gave us a little and then took it away!
By Consumers Union on Friday, June 18th, 2010
Back in March, BoA announced to everyone’s surprise, that they would be doing away with their expensive debit overdraft program. This was great news to the millions of customers who know first hand what its like to accidentally swipe their debit card for a $10 lunch and incur a $39 overdraft fee. But now BoA is coming up with new ways to make up the difference in their income, which they estimate is about $600 million this year.
Well it seems crazy that BoA was depending on $600 million of fee income for overpriced overdraft loans that its customers did not consent to. But its going to do its best to find ways to make their money elsewhere. And it may be through various new service fees placed on checking accounts.
To generate new revenue, Bank of America is quietly testing new pricing models throughout the U.S., with most changes expected in early 2011. Executives have ruled out a flat monthly fee for all customers and are developing a tiered structure that encourages customers to increase banking activity or use other services to avoid future charges.
Bank of America customers who only want a low-volume checking account will likely be asked to pay for it. Fees will likely be waived for customers who keep their balances high, use bank credit cards or tap its investment advisers. Bank executives declined to discuss specifics of the plan saying it is still being formulated.
“Customers will have a choice,” Bank of America Chief Accounting Officer Neil Cotty told analysts in April, of “bringing more relationships to us or paying a maintenance fee.”
If you want to tell Bank of America to shove it and switch to another bank, make sure to take precaution. Check out our tips for safety moving your money from one bank to another. This will help you avoid even more fees!!