End of free checking?
August 31, 2009 | alternatives, industry | Comments (0)From Walletpop:
I’ve been griping for some time now on WalletPop that free checking is hardly free. After all, the average household pays more than 12 overdraft charges a year. At, say, $35 a pop, that’s $420 a year — hardly a free checking account….
Banks have to make money somehow. We may not like that they have to make money, but they are a business, after all. {A bank expert} sees trouble ahead for the banks when the Federal Reserve gets around to addressing overdraft fees, and notes that banks are already adjusting to new rules, like making it harder for banks to raise credit card interest rates without warning, from the Credit Card Accountability Responsibility and Disclosure (CARD) act. Some of the CARD rules went into effect in August; the rest will start in February. “Some of these regulations are going to limit the banks’ ability to charge overdrafts,” says Israel, meaning that banks are already trying to think of new ways to make their profits.
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