Following in Bank of America’s footsteps, Citi will unleash a new wave of checking fees in December, reports CNN Money. Mid-tier Citibank account holders will now be hit with a $20 fee for failing to maintain a minimum $15,000 balance (it was $6,000 before); and EZ Checking account holders will now pay $15 a month for not maintaining a minimum $6,000 balance.
CNN also reports that the bank is phasing out EZ Checking, replacing it with the option of either a Citibank account or Basic Checking account, which of course carries fees ($10 per month, up from $8 in September) unless these customers maintain a $1,500 minimum balance or make at least one online payment or direct deposit transaction a month. As we’ve reported, these requirements are new, though they’re hardly shocking.
Given banks’ reactions to the Durbin Ammendment, “[Citi doesn’t] expect to pay nothing to ride the train,” as Nessa Feddis, vice president and senior counsel of the American Bankers Association, told CNN, and they’ll do whatever they can to make up for lost revenue.
Fortunately, CNN says Citi’s new offerings, like 92% of checking accounts, have fee waivers, so consumers might have a loophole after all.