Lenders Offset Losses and Bank Fees Rise

Summary: Despite the tough economic times as well as increased scrutiny from Washington; most bank fees are now at record highs, even an increase on overdraft charges. This step rarely happens during recession. And while these are relatively small increases, it illustrates how banks look for even the smallest income.

Americans are paying more to spend and save their money.

 The nation’s biggest banks – they have received big bailouts from taxpayers and they’re once again looking for more. They charge fees at least 20% higher on average compared to smaller lenders. This is according to an economic research firm patronized by federal regulators and banks, called Moebs Services.

Some charges are creative – Wells Fargo, US Bancorp, and JPMorgan Chase – recently began billing small-business customers with federal deposit insurance increases. Meanwhile, PNC Financial and Citigroup assess around 3% international transaction fee when the customers swipe debit cards overseas.

Bank of America introduced a series of changes. Its fees on basic monthly checking account increased from $5.95 to $8.95 in June. In fact, the bank was considering whether they would raise their overdraft charge to $39, which is nearly double of what a typical bank would charge a decade ago. But because of consumer complaints eruption, the bank backed down and retained the initial fee at $35.

Then, there are also credit cards. The banks are scrambling to increase fees and rates – JPMorgan Chase announced that it would raise balance transfer fees to 5% from 3% in August. Bank of America, Citigroup, and other lenders are also considering raising interest rates for their millions of cardholders.