The end is near
September 1, 2009 | alternatives, industry | Comments (0)The end of free checking that is. The Wall Street Journal picks up on the Walletpop story we posted yesterday:
“Banks, just like airlines and local governments, need to fill the revenue gap,” says Greg McBride, the senior analyst for Bankrate.com. “They’re looking to fee increases to do that.”
Banks are experimenting with a variety of tactics to increase revenue. In May, Fifth Third Bank rolled out its Secure Checking Account program, which costs $8 per month and includes identity theft alerts, discounts on a safety deposit box and a connected emergency fund savings account. And regional bank BBVA Compass offers a program called Built-to-Order Checking, a free no-frills account that offers add-on features for $2 a piece, including interest accrual, free use of other banks’ ATMs and one overdraft fee pardon per year. Last year, Chase renamed its Chase Free Checking program Chase Checking; it is free only for accountholders who use direct deposit or make at least five debit card purchases per statement period — otherwise, users pay $6 a month.
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