Just when you thought the waters of big banking were safe to venture into once more, big banks are desperately chomping after consumer dollars with new fees and charges on consumer accounts. After the impact of the CARD Act implemented in three phases over 18 months, consumers saw some relief from excessive overdraft charges, credit card fees and even the age at which a credit card can be issued. Those changes left banks at a loss for billions in lost “fees”, the cash cow of their business models. In an effort to reclaim some of those losses, banks such as Chase Manhattan and Bank of America are starting to impose minimum balance requirements, debit card fees and other charges to circumvent the CARD Act’s requirements.
What can you expect for banking fees in 2011?
According to an article on Wall Street Journal.com:
(1) Banks are considering additional fees on credit cards and checking accounts. If you’re not sure if your bank is charging these fees, just check your monthly statement. My January statement included a new $3/month fee for a paper statement with check images! Banks are nothing if not creative in the ways and means they can find to charge consumers for ‘services’. So, to join the green movement, I will be moving to a paperless monthly e-statement and saving $36/year just in paper statement fees.
(2) Next on the list are fees for the number of transactions and even the size of the transaction you can make with an ATM/Debit cards. While industry experts predict that these fees will occur in 2011, the exact date and specific banking institution that will bear the first negative media publicity hit is yet to be seen.
(3) Checking account fees will also jump this year. Kiss those free checking accounts a fond farewell say industry experts. “We don’t want to raise fees on our customers, but unfortunately, regulation is forcing us to do it, and as a result, some customers may end up unbanked,” said a Chase spokeswoman in the WSJ article. “Unbanked?” That’s banking speak for stuffing money in their mattresses! Additionally, banks will be encouraging a completely paperless account, meaning no paper checks. Customers writing paper checks could end up being charged as much as $2 per check. Banks may also start charging customers who fall below a minimum monthly balance or who maintain a low or inactive account.
So, as with all things financial, keep your eyes sharp and beware of those pesky little fees that can add up quickly over the course of a year.
Is your bank raising your monthly usage fees? I’d like to hear what you’re experiencing.