First, terms on credit cards got harsher. Now some people are seeing higher fees on their checking accounts.
Citibank customers with Access or EZ checking accounts will now be charged a $7.50 monthly fee unless they maintain a $1,500 balance. Previously, the monthly fee was waived if customers set up direct deposit for paychecks or two automatic bill payments.
Those measures will no longer automatically qualify customers for the fee waiver. The change takes effect in February; customers will be notified this month.
Natalie Riper, a Citi spokeswoman, said the change will “impact a relatively small percentage of our customers” since most people maintain the $1,500 balance. She declined to give specifics on how many people would be affected.
Meanwhile, Bank of America raised its monthly fee on checking accounts to $8.95 in June, up from $5.95. The North Carolina-based company will continue to waive fees for customers who set up direct deposit, maintain a $1,500 monthly balance or open accounts online.
The change by Citi comes as Congress considers legislation that would limit banks’ ability to levy overdraft fees on checking accounts. In recent years, it has become the industry norm to automatically enroll customers in overdraft programs.
Consumer advocates say the programs are misleading because most people assume they can’t spend more than they have with debit cards. Fees for overdrawing an account can be as much as $35 per violation.
The scrutiny over bank fees in the past year has led to a sense in the banking industry that “free checking as most of us know it can no longer exist,” said Bob Meara, a senior analyst at Celent, a Boston-based financial research firm.
