Finally there’s a noticeable result to credit card reform. You’re going to have to pay for your once-free checking account.
All the major banks are phasing out some free checking over the next year, according to the LA Times.
If you keep enough money in the account or jump through other hoops, then the account will be free. Otherwise you will face starter fees and monthly fees. That means most people will have to pay.
Bank of America:
Bank of America, for example, plans to phase in checking fees over two years, first for new customers and then for the 57 million households it already does business with. It’s testing reactions in three states to fees of $9 to $25 a month for consumers without big-enough balances or deposits. [NOTE: Show your outrage!]
At Citibank, depositors who make fewer than five debit-card transactions a month already pay $8 a month for checking.
Wells Fargo is charging $5 a month for new checking accounts, and its chief executive warned last month of more “costs that will be passed along to customers.”
Chase is imposing fees next week on customers whose deposits and balances aren’t big enough — $10 a month on the West Coast, WaMu’s former stronghold, and $12 elsewhere.
Read more details here.
As for the other benefits of credit card reform, surveys show that most Americans don’t know about them, and even fewer use them.