Several U.S. banks, including Chase, are waiving fees for residents in the path of Hurricane Sandy
*What’s the asterisk for? Well, while several big banks say they won’t start charging monthly fees for debit cards a la Bank of America, in most cases they are adding other fees or changing account requirements to increase revenues anyway.
When Bank of America announced its $5 monthly fee for debit card usage, some observers felt it was only a matter of time before BofA’s big bank brethren followed suit with similar fees. Thus far, somewhat miraculously, several big banks have resisted the urge to tack on fees of their own. (The backlash against BofA may have something to do with it, though these banks haven’t said this is the case.) But that doesn’t mean these financial institutions aren’t adding other new fees and figuring out new ways to get more money out of customers.
A Wall Street Journal story highlights the fact that several big banks—including Chase, Citigroup, PNC Bank, and U.S. Bancorp—have recently gone public with proclamations that they will not add fees for monthly debit card usage. But, so as not to confuse these institutions with online banks, small banks, and credit unions that were and remain largely fee-free, let’s take a look at some of the other fees and new revenue generators being added by three of these big banks.
JP Morgan Chase
The company has reportedly decided against adding a fee for debit card usage. But, as CEO Jamie Dimon put it last year, in one way or another all of the bank’s costs will be “repriced into the business”—i.e., somehow passed along to customers. Chase tried to earn extra revenues from non-customers through a $5 fee at its ATMs, but the move proved unsuccessful. Other new (or newly higher) fees from JP Morgan Chase are expected to stick around, including increases in charges for services like wire transfers and stop-payment requests, and higher minimum-balance checking account requirements that mean $12 to $14 monthly account fees that didn’t exist in the recent past.
(MORE: Credit Union Guarantees Free Checking and No Debit Card Fees FOREVER)
Citigroup
Checking account fees are being doubled for a large chunk of Citi customers. The bank is phasing out its EZ Checking option for mid-tier customers, though clients who want to keep this kind of account can do so—so long as they’re OK paying monthly maintenance fees of $15 (up from $7.50). To get those fees waived, customers would have to maintain balances of $6,000, four times the previous requirement, $1,500. For other Citi accounts, fees (and balance requirements to avoid those fees) are also rising, ensuring that the bank makes more money from customers—either via increased fees or increased deposits.
(MORE: Three Alternatives to Paying Big Bank Fees)
PNC
Earlier this year, PNC revamped its checking account options from top to bottom, while promising that free checking accounts would remain free. Nonetheless, because of changes to reward programs, balance requirements, and other fees, the bank is successful steering customers away from free checking, reports the Cleveland Plain Dealer:
Seventy percent of new customers are opting for accounts with fees, instead of free checking. That’s in line with PNC’s goal of moving customers away from free accounts.
Brad Tuttle is a reporter at TIME. Find him on Twitter at @bradrtuttle. You can also continue the discussion on TIME’s Facebook page and on Twitter at @TIME.