And Yet Another Fee?

If you missed the news this morning then you missed a very important announcement regarding banking fees and the ever evolving economic crisis. Several banks are testing out new fees while Bank of America has made the decision to move forward and charge their debit card customers $5 per month, a change that will go into effect in early 2012. BOA will roll out their fees in stages in order to help recuperate the loss of revenue caused by a Federal regulation capping the fees that banks can collect from merchants when customers swipe their debit cards. In 2009 those fees generated nearly $19 billion in revenue. In response to tomorrow's new regulation banks are pushing debit card fees with the hope that customers will become increasingly reliant on credit cards thereby generating other sources of revenue.

Bank of America has assured its customers that the fee will not apply to ATM use and will be applied monthly for unlimited debit card use. Still, we at Savvy Student have to wonder, where we can draw the line on fees. With Bank of America beginning their exploration of the new fee system, many banks are following suit, including JP Morgan, Chase and Company and Wells Fargo.

Sun Trust, a regional bank in Atlanta, GA began charging their customers this past summer, however, BOA is the largest U.S. bank by deposits, so it is making national headlines.

If you would like to read more about the new $5 fee check out the WHDH report here or the CNNMoney article here.

If this post was helpful let us know. If you turned red in the face and steam came out of your ears then you are not alone.

Awe such is life,

Savvy Student