Bank of America to Raise $5 Debit Card Fee Threshold to $20,000
Bank of America (NYSE:BAC) is poised to make it increasingly difficult for their legions of customers to waive the hugely unpopular $5 debit card fee, which is to go into effect next year. The second-biggest bank in Central Florida is to eliminate its Advantage checking program, which required no more than $5,000 in overall deposits in order to see the $5 fee waived. As of now, it will require at least $20,000 in order to enjoy the same privilege, forming part of the bank’s new ‘Premium Solutions’ offering.
However, customers who currently hold a mortgage with Bank of America will also be able to waive the fee, according to official reports.
The CEO of the national giant came forward this week to speak about the new move, stating that the increase in required deposits is designed to encourage customers to bring more business to the bank. This of course contradicts the millions who have labeled the new initiative as nothing more than profiteering, which is something the bank refused to respond to.
Wells Fargo (NYSE: WFC) on the other hand is currently testing a $3 monthly fee for debit card use in selected demographics, while JP Morgan Chase (NYSE: JPM) is also said to be considering similar initiatives. Nevertheless, it remains Bank of America that has become the lightning rod for the whole issue.
Bank of America has approximately $6.8 billion in Central Florida deposits and the fear now is that it will be those least able to afford the debit card fees who will be hit the hardest in order to further profit the bank.
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