From here on out, free checking accounts will no longer be the same.
According to TIME
, Bank of America will no longer offer free checking accounts. After having to drop overdraft fees, the bank will reinstate checking fees for basic banking services such as banking with a teller or receiving a paper statement in the mail.
A good amount of Bank of America's revenue came from the overdraft fee, however many customers disliked being penalized for going $1 or $2 over their account balance so they decided to close their accounts. The increase of customers leaving BOA became a problem so they strategized a way to keep their customers and also make a profitable gain from their accounts.
These new fees will cover monthly maintenance for customers who don't meet minimum balance requirements and who don't otherwise do much business with the bank.
Many other banks may follow Bank of America's example and create checking fees for their own and others might find this the perfect opportunity to lure customers into banking with them, however it is important to keep in mind that no banking is free and that most banks will add fees anytime they can get away with it.
Read more at: http://money.blogs.time.com/2010/06/17/bank-fee-watch-no-more-free-checking/