Citibank is revamping the fees on its checking accounts starting Nov. 1. Customers will have ways to avoid the fees through banking activity or minimum balances, The Associated Press reports.
The bank’s simplest option, the EZ Checking account, will no longer be available for new customers. These accounts require a $1,500 minimum balance or a fee of $7.50 to $9.50 per month depending on the state.
New customers interested in entry-level checking accounts will now be offered Basic Checking, which has no minimum opening deposit or balance requirement.
The monthly fee for this account will be $8, instead of its current range of $3 to $10 depending on the state. The fee will be waived for customers who make five transaction a month. These can include direct deposit, ATM transactions, purchases with debit cards, online bill pay or checks.
The fee for using a non-Citi ATM is rising to $2 from $1.50 on Nov. 2.
The next level up, the Citibank account, will continue to have a $6,000 combined minimum balance requirement. If customers don’t meet that limit with their balances in checking, savings, credit, CDs, investments and other accounts, the monthly fee rises to $20, from the previous $9.50 to $15, depending on state.
The bank’s top-tier account, the Citigold, will see the monthly fee rise to $30 from $25, but the combined minimum balance requirement for a fee waiver will drop to $50,000 from $100,000 in credit, investment and retirement accounts. Non-Citibank ATM fees are also waived.
All accounts qualify for Citi’s “Thank You” rewards program, ranging from at least 50 points per month for the Basic account to 1,200 points for Citigold. Additional points can be racked up with debit card purchases and other transactions.
Per-check fees on EZ, Basic and Citibank accounts are no longer charged.
Banks around the country are adjusting their checking account fees to make up for revenue lost to regulatory changes, like limits on overdraft fees. Wells Fargo, for example, did away with free checking in July, and Bank of America is testing new fees and is expected to roll out changes next year.
