Banks Now Charging For Checking Accounts
Banks Now Charging For Checking Accounts
Recent news from the banking sector has raised anxiety among many customers, particularly those with checking accounts. Since banks started announcing monthly charges for different checking accounts, customers are caught between changing banks, dropping their accounts or moving to a different checking account level.
It helps if your bank is transparent about changes in their fees. Bank of America, the biggest and leading bank in the country, was among the first big banks to announce changes in their checking account charges, which became effective August 1, 2011. The bank has four different checking accounts, each attracting a different monthly fee.
eBanking fees
The most basic of Bank of America’s checking account tiers, eBanking checking account is designed for online banking. It is a non-interest account that encourages use of self-service methods for making deposits and withdrawals. The monthly maintenance fee for the account is $8.95 and it has a minimum opening amount of $25.
You can avoid the monthly fee by using only self-service options to make deposits and withdrawals. This means not involving a bank teller in any transaction. This you do in a number of ways:
– Deposit your paycheck or retirement benefits directly to your account electronically or make deposits at Bank of America electronic lobby kiosks or ATMs.
– For withdrawals, use a Bank of America ATM or get refunds every time you use your debit card to pay for purchases.
You must also opt for paperless statements, where your bank statements are sent to you electronically, via email, instead of getting a paper statement via mail.
If a bank teller helps in completing any transaction you make or you opt to receive a paper statement, you incur $8.95 in charges for that statement cycle.
MyAccess Checking fees
MyAccess checking is also a non-interest bearing checking account, best suited for customers who can maintain direct deposits. Anyone on payroll or who receives Social Security benefits can open a MyAccess account. The account has a monthly maintenance fee of $12 and a minimum opening amount of $25.
To qualify for a fee waiver, you must either maintain a minimum daily balance of $1,500 in the account or have a minimum of one direct deposit of $250 or more every statement cycle (every month).
Regular Checking Account
Yet another non-interest bearing checking account, the Regular Checking account attracts a monthly maintenance fee of $14. It has a minimum opening amount of $100. To qualify for a fee waiver, you must meet one of these requirements:
1. Maintain a minimum daily balance of $1,500.
2. Link the account to a regular savings account and maintain a minimum daily balance of $2,000.
3. If you have a linked money market savings account, maintain a minimum daily balance of $5,000.
4. If you have linked savings, CD and IRA accounts, maintain an average daily balance of $5,000 or more.
Bank of America Advantage with Tiered Interest Checking fees
A checking account that comes with a range of premium services, this account earns you interest at a variable rate. It has a monthly maintenance fee of $25 and $100 minimum opening amount. You can avoid the fee by meeting any of these requirements:
1. Maintain a daily balance of $5,000 in the checking account.
2. Maintain a daily balance of $5,000 or more in a linked regular savings account.
3. Maintain a combined daily balance of $10,000 or more in checking account with linked savings account, money market savings account, CD account and IRS account.
4. Have an outstanding balance on a linked line of credit or investment loan worth $15,000 or more.
5. Have $15,000 or more in combined assets in your Pierce, Merrill Lynch and Fenner & Smith Incorporated Investment accounts, which must be linked to the Bank of America Tiered checking account.
6. Have a linked Bank of America first mortgage loan of any amount.
Bank of America Advantage for Seniors with Tiered Interest Checking
This is similar to the Bank of America Advantage with Tiered Interest Checking in principle and fees, but is designed for seniors. It comes with additional advantages for seniors such as the privilege to make one penalty-free withdrawal of up to $2,500 from a CD linked to the Advantage for Seniors account.