BofA Eliminates Free Checking Accounts, Upsetting Customers

January 26, 2018
BofA Eliminates Free Checking Accounts, Upsetting Customers January 30, 2018 Clive Nelson https://plus.google.com/110107075468979879828/

Bank of America (BofA) recently announced that they are eliminating their free checking accounts which did not go down well with Bank of America customers who went online to voice their disapproval. Those who used to have free accounts have been shuffled to accounts that charge a $12 monthly fee.

These account holders do not need to pay the monthly $12 fee, if they receive $250 in deposits each month or maintain a daily balance of $1,500.

This move from Bank of America formally ends the free checking account program that the bank introduced back in 2010.

WUSA9

The original checking account was called an eBanking account and was offered for free as long as the customer did their business either via an ATM or online. An additional $8.95 fee was charged every month if they wanted to get a monthly statement by mail or did business by a teller. The bank stopped offering this account option back in 2015, but the existing accounts were grandfathered in. Bank of America decided that it was time to scrap these accounts and transfer former account holders to standard checking accounts.

This sudden change has caused a lot of anger online. Several people have gone on Twitter and said that they will be closing their accounts with Bank of America. Others have joined the existing Change.org petition, which has managed to garner more than 100,000 signatures so far.

The main complaint against this move is that Bank of America has decided to eliminate a free banking option that many poor families depend on. A checking account is an essential requirement when cashing a paycheck and placing a monthly $12 fee is excessive especially for economic backward families.

Studies show that economic backward families often have to pay more banking fees than their more affluent counterparts. Some find the fees too much, which is the main reason why 59% of US families earning under $30,000 a year do not have a checking account.

Bank of America’s response is tepid at best. In a statement, Bank of America had this to say:

Our Core Checking account provides full access to all our financial centers, ATMs, mobile and online banking and offers several ways to avoid a monthly fee, including a monthly direct deposit of $250. This is one of the lowest qualifiers in the industry and a great value

The statement further says that those looking for a lower-priced option can opt to use a SafeBalance account that only charges $4.95 a month, with all the standard features and no overdrafts.

About the Author

Clive Nelson

Clive Nelson Author

Hi, my name is Clive Nelson and welcome to Traders Bible. Just to tell you bit about myself…I have been trading FX and binary options for the best part of 10 years now. After graduating with honours in economics, I began working for an investment bank in New York as an assistant trader before working my way up. After a few years, I went on to work as a broker in London, England and then eventually came back to the U.S to work in a hedge fund, where I manage $800 million of my clients’ investments. There have been times over the course of my career where I’ve had to take a hit, but I’ve accepted that losing is part of the game, it’s a learning curve. I’ve learnt from my mistakes and you don’t have to make the same errors I did. A lot of my education came from when I was a broker and this is why I’m here to tell you that Traders’ Bible offers you the foundations of how to become a great trader.


Related Articles

Citi fined $550,000 by CFTC over improper LEI reporting

The stock of global banking and financial institution Citigroup Inc (NYSE: C) had a tremendous run up in September. The

MasterCard beats Q4 EPS view, Vetr upgrades stock

Last week, the stock of Credit card provider MasterCard Inc. (NYSE: MA) tumbled to a low of $103.96, after reporting

Study Shows Bank of Israel’s Intervention Curbs Forex Gains

A new research study has revealed that every $100 million purchased by Israel’s central bank between 2009 to 2015 resulted