More banks have imposed new fees or increased existing fees that customers happily pay because they just don’t realize what has happened. Federal regulations on banks have caused the institutions to lose a tremendous amount of profits and as a result, higher costs have been passed on to customers. Banks are hoping to recoup their major loss in profits but are offering little in the way of incentives to the customer.

Here are some tips for reconsidering your business of banking that you can use to evaluate and make the necessary transitions:

Read Disclosures

Banks that make changes to customer accounts must give written notice of their intent. Unfortunately, many consumers fail to properly review or even read any correspondence from their bank, including their regular monthly statements. Disclosures contain a lot of fine print but it does provide an updated and accurate look at how your bank account is changing.

Review Your Statements

Luckily most banks now give customers online access to previous monthly statements. Take the time to log in and review these statements. You may be surprised at the new or increased fees you have been paying for services you often use. These increased fees many include ATM usage, checking account fees, and higher overdraft charges. Keep track of these new fees and add them up over a year’s time. You may find you can not afford to bank with your present institution.

Check Your Reliance

You may be surprise at how many times during the month you utilized bank services that cost you money. You may also find that you do not rely on your bank in a way that justifies the higher cost. Check how much you are paying and decide if it’s really worth it to stay where you are.

Speak with the Branch Manager

Brick and mortar banks have a manager on duty to help you clarify the changes taking place at your bank. If you are not aware of how recent federal regulations have affected your account, seek out the manager and discuss the issues you have or the questions you want to ask. Another recent to speak to a manager is to air out your complaints about recent changes to your account. Some banks may be willing to hang on to loyal customers are will offer a better deal or waive costs in order to keep you happy.

Go Elsewhere

If you have reviewed your banking services and decide that another bank may be in order, it is wise to research all of your options. Outside of the other large banks, consumers may receive better, more cost-efficient service from a local community bank or a credit union. Do your homework to find a better facility to handle your money. If your present bank is not willing to compromise, don’t hesitate to transfer your finds elsewhere.

Reconsider How You Bank: Tips for Making a Change was created by and is property of American Consumer News.

Beginning later in 2011, the checking account fees on customer accounts will be introduced in Massachusetts, Georgia, and Arizona. The checking fees will progressively be activated nationwide at a later date but the initial states are a pilot program for the bank as it tries to maneuver the implementation of various fees.

Bank of America is just one of the banks in the US trying to make up for lost profits thanks to the new legislation that limited how and how much banks could charge customers for a variety of transactions. One of the main focuses banks had was to reintroduce fees for basic accounts which in the past had been free for customers as an incentive for banking with a specific institution.

It is getting increasingly difficult for consumers to access free bank accounts in any capacity as much revenue was lost with the changes in the banking industry in the last year. Banks are finding more creative ways to assess charges and fees on customer accounts and have been changing up the rules. They are focusing on benefitting from their existing customers to bring up their revenue totals. Because of the many changes occurring, it is important for consumers to stay up to date with account changes or risk losing money from unnecessary fees.

Bank of America has been working on various plans that essentially require customers to use more of the banks products and services as a way of avoiding fees. For instance, customers that opt to receive e-statements and do much of their banking online will have to pay less monthly fees.

There will now be four different types of checking accounts for Bank of America customers. The basic checking account known as Essentials will include a debit card and require a monthly fee. eBanking accounts will not require a fee if customers choose to receive statements online as well as perform transactions either through an ATM or the Internet. Enhanced checking accounts will require a fee be paid if a minimum balance of $2,000 is not met. For the Premium account, there will be a required minimum balance of $20,000 and incentives for customers include free check printing and free money orders.

Bank of America (NYSE: BAC) Introduces New Checking Fees was created by and is property of American Consumer News.

First, users of the Citibank Basic Banking account will be able to forego the monthly maintenance fees by simply making five qualifying transactions a statement period. These qualifying transactions include common daily uses such as ATM withdrawals, direct deposit, bill payments, auto deductions, and debit card purchases.

If these minimums are not met by customers then they can expect be charged an $8 monthly fee when November’s statement period begins. This should be considered in light of fact that earlier fees ranged from $3 to $8 a month in the past for checking customers.

Higher Level Accounts

Those who have Citibank’s mid-level accounts can expect fee waivers if they will keep at least a $6,000 monthly balance in their combined accounts. As with basic level accounts, a failure to meet this minimum balance requirement will result in higher monthly maintenance fees. Whereas in the past, mid-level accounts were assessed fees of $9.50 to $15, the new rate is $20.

Citigroup stated that its combined or linked accounts include checking, savings, credit cards, CDs, investments, mortgages, lines of credit and retirement accounts, among others.

For its top-level Citigold accounts, the package created especially for wealthy clientele, Citigroup has reduced the minimum monthly balance to $50,000 from the previous $100,000 balance requirement. The $30 fee (raised from $25) can be waived if the customer maintains the limit in all of their deposit-related linked accounts. Additional waivers are available to Citigold customers whole keep $100,000 in deposit accounts, investments, loans, credit cards, and lines of credit. (This option excludes first time mortgages or $250,000 in similar accounts plus the mortgage.)

A Change Of Strategy

This change of procedures is just a portion of the planned adjusts that are being made in Citigroup’s U.S. consumer banking businesses. The company said that it plans to focus particular attention on its U.S. retail business activity, even while developing its assets abroad.

All of this change has been a part of Citigroup efforts to make its retail checking account offerings more effective. In 2009, it began by reducing the number of account from six packages to four. Citibank EZ Checking account is one product that has ceased being actively sold.

Citigroup has been downsizing since it was nearly sunk by the financial crisis. (It needed $45 billion in bailout funds from the government to maintain operations.) The goal for Citigroup is to straighten out its balance sheet, eliminate complex business lines and concentrate on a small number of key businesses.

Reference:

Citigroup (NYSE: C) Still Involved In Restructuring Of U.S. Retail Sector was created by and is property of American Consumer News.

Over the last 10 years, automated tell transaction fees have gone up by more than a dollar on average. This means, each time you make a visit to a bank machine that is not a part of your own personal bank network, you are hit with a fee of $2.00 or more in fees. More of your hard-earned money is being shelled out simply for convenience. To make matters even worse, when you use the ATM and get socked with a fee, you are likely to get hit with ANOTHER fee by your own bank. Hardly seems fair, right?

Well, it is a fact. The banking industry makes billions of dollars in bank fees from automated teller machines each year. Sometimes the fees are hard to escape especially when you are desperate for cash when your bank’s machines are no where in sight, such as the times you are on vacation or getting some holiday shopping done. When you need the cash, you often may not consider the small fee at the time – but it does add up. When the ATM is about to charge you a fee for use, you will receive notification prior to completing your transaction. You can always opt to refuse the card and find another ATM.

There are other ways to avoid giving the banks more money than you need to be. Simply planning can help alleviate some of the issues. Make sure to keep a stash of cash on hand for whenever you might need it and plan out the amount you keep based on your budget. Another way to avoid the fees at the ATM is to use your banking debit card to make your purchases, if you choose to not carry cash. Be carefully when using your card though. It can be very easy to forget some of your purchases and screw up your checkbook. Mismanagement of your bank account can lead to even higher fees when you factor in the overdraft fees banks are now charging which can be as high as $40 or more for each item cleared through insufficient funds.

Expect to Pay More at the ATM was created by and is property of American Consumer News.