Passage of increased regulation and scrutiny of United States banks resulted in apparent moves away from free checking on the part of Bank of America, Wells Fargo, and HSBC, according to recent reports. The move by Bank of America, Wells Fargo, and HSBC does not come as a big surprise. Any excuse is a good excuse in the minds of some.
To qualify for free checking in the past customers might have direct deposit, a small minimum balance requirement (perhaps $300), or other factors that reflect stability. Has that changed, or have these three banks merely capitalized on a good excuse?
TD Bank gives you a free first year. After that it hits customers with a $15 a month maintenance fee if their balances fall below $100.
Chase charges $6 a month if you don’t receive direct deposits or make at least five consumer purchases against the account each billing cycle.
“We have no plans to add/change fees on our free checking products at this time,” said Capital One spokeswoman Pam Girardo.
Personally the Capital One statement does not instill confidence, and leaves the door wide open for future changes. But there are some bright spots and banks with no fees. HSBC is not one of them.
USAA offers free checking and many other perks to qualified members.
“U.S. Bank has made no changes to its free checking accounts,” bank spokeswoman Teri Charest said. “We are watching the regulatory landscape as it continues to evolve. Our overall belief is that there will always be a way for customers at all income levels to have a checking account without a monthly maintenance fee.”
ING Direct is thrilled, made no changes under the new law, and sees things a different way. “Congress is trying to push [other banks] to do things our way, and we’re quite comfortable with the way the product works today” said Chief Operating Officer Jim Kelly.
