Bank Fees Will Continue To Increase, As Other Income Dries Up For Banks

March 18, 2012
By

Outraged bank customers better have a lot of stamina, because the battle
over new fees may only be getting started.

Before the 2008 financial crisis,
banks made a ton of money from proprietary trading, securitization,
overdraft fees, high credit-card interest rates and many other types of
activity.

That made it easy to offer checking accounts that included things
like free ATM withdrawals and unlimited check writing, with no rules
about how much business you brought to the bank or how much time
you took at the teller window.

Banking is a different business today,
with many once-profitable activities banned or curtailed. So it’s no
surprise that banks are unbundling free checking and starting to charge
for things that used to be offered gratis as part of a broader package.
Instead of profits from one part of the industry subsidizing services
offered in another, bank customers would basically pay for what they
get.

Limits on what banks can charge their most vulnerable customers
would mean that less vulnerable customers pay a bit more. Banks
would offer discounts to customers who make “bulk purchases,”
which in banking means consolidating all of your loans, credit cards
and accounts at one bank.

Story
by Rick Newman for US News

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One Response to Bank Fees Will Continue To Increase, As Other Income Dries Up For Banks

  1. Bob Trotta on March 19, 2012 at 1:08 am

    Well, if this is what you see coming, then NOW is the time for Washington to get off their rear ends and beat them to the punch! They have robbed us enough over the years. Time for THEIR CEOs to take a salary cut!

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