(BAC) Bank of America Considering New Fees Again

It has been over a year since Bank of America Corporation (BAC) has been testing its new fee structure in the states of Arizona, Massachusetts and Georgia. In this context, on Thursday, The Wall Street Journal reported that BofA is planning to impose these fees on its customers.

According to the company, there has been no decision as to how or when these fees would be introduced on new accounts.

According to the source, BofA is considering raising monthly fees on checking accounts. The company is planning to charge $6-$9 per month on basic checking accounts. Apart from this, the company is also mulling monthly fee in the range of $9-$25 on other checking accounts.

However, customers need not worry as there are certain ways to avoid these fees. BofA will be giving its customers various options to avoid these fees by making it compulsory for them to switch to online banking including e-payment of bills. Other than this, the customer can evade increased fees by maintaining minimum balances, taking a loan from the company or using BofA’s credit card.

By opting for e-banking, the customers as well as BofA are expected to benefit in the long run. It would be easier for the customers to keep a track of all the banking records.

Further, by paying bills electronically, the customers can avoid check printing fees and save on postages. Therefore, the company’s expenses will also get reduced as there would be no need of buying papers and sending monthly account statements.

BofA’s decision to give options to its customers is a way to prevent public outcry, which it had faced last year. In 2011, the company had decided to charge $5 per month for using the company’s debit card. However, following stiff opposition from the customers, the company had to withdraw this fee.

With almost all the major banking companies facing revenue losses due to the regulatory curbs on imposition of various service charges and overall weakness in the economy, BofA’s decision to introduce new fees can be seen as a step to increase revenues.

Similar to BofA, other major banks including JP Morgan Chase & Co. (JPM) and Wells Fargo & Company (WFC) are trying to recoup fee revenues by rolling out different plans or pushing the customers to involve in more financial activities with them.

Currently, BofA retains a Zacks #3 Rank, which translates into a short-term Hold rating.

BANK OF AMER CP (BAC): Free Stock Analysis Report

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WELLS FARGO-NEW (WFC): Free Stock Analysis Report

View original at: Zacks Investment Research – All Commentary Articles

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