Bank Of America Ends Free Checking For Low Balance Accounts

CHARLOTTE, NC — Many low-income individuals and families rely on free checking accounts, such as those that Bank of America began offering eight years ago. Customers who had an eBanking account weren't charged a fee as long as they used online statements and use self-service options to make deposits and withdraw money.

But the Wall Street Journal reported Monday that the popular checking accounts were phased out and all remaining eBanking customers this month were switched to accounts that charge a $12 monthly fee if the account doesn't have at least one $250 direct deposit a month or fails to have minimum daily balance of at least $1,500 each month.

Betty Riess, with the bank's consumer banking products and channels department, tells Patch they discontinued the eBanking account in 2013 and have since been migrating customers over to Core Checking accounts.

"Our Core Checking account provides full access to all our financial centers, ATMs, mobile and online banking and offers several ways to avoid a monthly fee, including a monthly direct deposit of $250, which equates to $3,000 annually," she says. "This is one of the lowest qualifiers in the industry and a great value."

A petition on Change.org to tell the Charlotte, North Carolina, based bank to keep the checking accounts open has garnered more than 45,000 signatures. The petitioner urged people to let Bank of America know the move was "unfair" to customers who have been loyal for years.

"Many low income families do not meet these requirements," the petitioner said. "There have been times where I've only had $10 to my name. That wouldn't even cover the maintenance fee."

The eBanking accounts were first introduced eight years ago when the bank encouraged customers to do more business on computers and phones. The accounts were free for customers who didn’t use a bank teller for routine transactions and had to receive online statements. The bank stopped offering the service to new customers in 2013, but those who'd signed up for it were allowed to keep it.

A spokeswoman for the bank told the Journal their client satisfaction scores were also at "all-time highs."

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