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(Reuters) - Bank of America Corp and other U.S. banks may introducenew fees on basic services and eliminate free checking to replacerevenue lost to new banking regulations, the Wall Street Journal said.
Themove is expected to hurt retail clients who could be asked to pay newmonthly maintenance fees on the most basic accounts that do notgenerate a lot of activity, the paper said.
To avoid a fee,customers will have to maintain certain account balances or frequentlyuse other banking services, such as credit and debit cards, automatedteller machines and online accounts, the Journal said.
Banksincur an expense of between $250 and $300 a year to maintain each ofthe roughly 200 million checking accounts, the paper said citingindustry estimates.
Bank of America may lose more revenue thanmost other big banks because it is in the process of dismantling itschecking-overdraft program in the face of new restrictions.
From this summer, banks must receive customer permission before they can charge for overdrafts.
However,in March, Bank of America announced plans to suspend overdraft feecharges on all debit card transactions from this summer.
Bank of America could not immediately be reached for comment.
Smh.
Themove is expected to hurt retail clients who could be asked to pay newmonthly maintenance fees on the most basic accounts that do notgenerate a lot of activity, the paper said.
To avoid a fee,customers will have to maintain certain account balances or frequentlyuse other banking services, such as credit and debit cards, automatedteller machines and online accounts, the Journal said.
Banksincur an expense of between $250 and $300 a year to maintain each ofthe roughly 200 million checking accounts, the paper said citingindustry estimates.
Bank of America may lose more revenue thanmost other big banks because it is in the process of dismantling itschecking-overdraft program in the face of new restrictions.
From this summer, banks must receive customer permission before they can charge for overdrafts.
However,in March, Bank of America announced plans to suspend overdraft feecharges on all debit card transactions from this summer.
Bank of America could not immediately be reached for comment.
Smh.
