Checking Costs Could Increase Debt
Many consumers across the country are living paycheck-to-paycheck and watching their budgets closely in order to stay afloat financially.
As a result, some may not be pleased to hear many major banks are planning to introduce monthly fees on their new checking account offers.
"Wealthy consumers will be able to avoid these charges by maintaining high balances," Jeremy Rosenblum, a Pennsylvania lawyer and consumer finance specialist, told The Los Angeles Times. "But for the poor and moderate-income people whose balances are lower, it's going to be much harder to avoid these fees."
Bank of American, Wells Fargo, JPMorgan and Citibank are all planning to introduce these charges, which range as high as $25 a month, the news source says. Currently, the extra expenditures will only be for new customers and many consumers will likely be able to keep accessing their funds for free without holding a minimum balance.
Major banks say the charges are necessary as recent legislation has severely limited their ability to raise revenue. As a result, consumers could see more programs such as popular rewards cards and even free checking for existing customers disappear in the future.