BofA (BAC) Unveils New 'Shell Game' for Checking Customers (JPM) (C) (WFC)
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The shift has begun.
According to Boston.com, Bank of America (NYSE: BAC) is planning a roll-out of new account structures aimed at garnering higher fees from customers.
Over the next several months, BofA will be shifting customers in three Northeastern states from traditional checking products into a new set of accounts.
Basics of the new accounts include meeting higher balance requirements, or other considerations, which may shift those that previously received free checking into more expensive accounts.
Boston.com said where a previous balance of $1,500 in a checking account avoided an $8.95 monthly fee, that balance must now be hiked up 33 percent to $2,000. Further, customers could also go the route of maintaining $5,000 in various accounts or use a BofA credit card at least once a month to avoid a $15 fee. Should customers go paperless, and sign up for BofA's eBanking service, transactions made online or through an ATM will allow customers to skip over a $12 per month fee.
BofA has yet to release data on how many customers currently pay fees on checking accounts, and how many more would under the new system. BofA plans on transitioning about 530,000 accounts in the three selected states, with a nationwide implementation expected before the end of 2011.
Other changes by BofA include:
It almost seems like one of those shell games you might see while walking down the street, where you can never seem to guess right. Hopefully, BofA's new rules will come with a clear description aimed at helping customers avoid fees, instead of falling right into them.
According to Boston.com, Bank of America (NYSE: BAC) is planning a roll-out of new account structures aimed at garnering higher fees from customers.
Over the next several months, BofA will be shifting customers in three Northeastern states from traditional checking products into a new set of accounts.
Basics of the new accounts include meeting higher balance requirements, or other considerations, which may shift those that previously received free checking into more expensive accounts.
Boston.com said where a previous balance of $1,500 in a checking account avoided an $8.95 monthly fee, that balance must now be hiked up 33 percent to $2,000. Further, customers could also go the route of maintaining $5,000 in various accounts or use a BofA credit card at least once a month to avoid a $15 fee. Should customers go paperless, and sign up for BofA's eBanking service, transactions made online or through an ATM will allow customers to skip over a $12 per month fee.
BofA has yet to release data on how many customers currently pay fees on checking accounts, and how many more would under the new system. BofA plans on transitioning about 530,000 accounts in the three selected states, with a nationwide implementation expected before the end of 2011.
Other changes by BofA include:
- a $35 fee if customers overdraw their account by a penny; previously, customers were charged only if they were overdrawn by $10 or more.
- a penalty rate of up to 30 percent on future balances if they are late on payments.
- penalties for customers who make early withdrawals on new certificates of deposit.
It almost seems like one of those shell games you might see while walking down the street, where you can never seem to guess right. Hopefully, BofA's new rules will come with a clear description aimed at helping customers avoid fees, instead of falling right into them.
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