Banks charge checking accounts to offset losses

May 29, 2009 3:23:55 PM PDT
Some banks are boosting checking account fees to offset losses from credit cards. A new law signed by President Obama last week puts tighter restrictions on how banks charge fees and rates on credits cards, which has some lending institutions looking at other ways to make up the difference.

This month, Bank of America will raise its monthly fee on some checking accounts and increase a fee on accounts that remain overdrawn.

Wachovia, which is now part of Wells Fargo, has increased the cost for some customers to transfer funds to cover overdrafts.

And Citigroup has increased its foreign transaction fees on some debit cards.

Banks say higher fees help offset the riskier banking activities of some customers who are hard hit by the recession.


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