Bank of America and the end of free checking
When Bank of America announced that it was getting rid of it’s free eBanking checking account, the social media backlash was both swift and furious, with thousands of consumers threatening to take their business elsewhere. Now's the time for credit unions to pounce.
Bank of America has been phasing out its no-maintenance fee eBanking account for a while, but in January 2018 they finally decided enough was enough and pulled the final plug on the product.
BofA’s eBanking account waived an $8.95 monthly maintenance fees if two main conditions were met: (1) customers had to receive eStatements, and (2) customers had to make deposits and withdrawals using self-service options. With eBanking, customers would have been charged the $8.95 fee if they went into a BofA branch to make a deposit or withdrawal, but once the customer incurred the fee, they could have made unlimited deposits and withdrawals within that month.
Bank of America is converting all eBanking accounts into its Core Checking product, which includes a $12 monthly fee. There are a few ways consumers can avoid the $12 monthly maintenance fee. The first way to avoid the fee is to have a qualifying direct deposit of at least $250. The second is to maintain a minimum daily balance of $1,500 or more. The third is to prove the you are a student younger than 24.
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