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.

Now the bank will impose stipulations on basic checking accounts including minimum balance requirements and out-of-branch-only banking. The move by Bank of America may be a sign of things to come across the board at other banks. Free accounts may soon become a thing of the past. Wells Fargo was the first bank to stop free checking.

Bank of America launched the eBanking account service in August. This service allowed customers who banked solely online to have a free checking account. The stipulations with this banking program is the free account would require a $8.95 if they needed to access assistance from a branch teller or wanted to obtain paper statements.

Other changes have been instituted by Bank of America. An Emergency Cash option was made available to customers who wanted to make ATM withdrawals which exceed their current account balance. The charge for the service is $35 and the customer must directly except the charge before accessing the cash, unlike with a overdraft fee.

Not all banks have ceased their free checking options as of now. There are still banking institutions trying to keep up with free checking account offers including but with the need to make up profits since the recent changes made in the banking industry, it is likely consumers will have a harder time finding a new checking account provider totally free of charges.

Bank of America (NYSE: BAC) Cuts Out Free Checking Offers 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.

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

Why Bother With Short-Term Savings?

The general recommendation is for people to have enough money stashed away to cover these unexpected occurrences for a period of three to seven years.  If you don’t have this savings set up, you’ll find yourself charging all of life’s unexpected events (or perhaps things you should have been able to foresee but you just didn’t plan for them!) on high interest credit cards, or heading to the bank for yet another loan.  Avoiding this kind of last-minute borrowing will also avoid the potential for high interest payments that end up costing you five to ten times the original price.

How Much Do You Need?

The actual amount you decide to set aside in short term savings will of course be a personal decision, but there are some things you can take into consideration to help you determine a good dollar amount.  Ask any financial planner and they’ll tell you you should have three to six months of living expenses saved, no questions asked.  Does that sound like a lot to you?  And that’s the minimum amount you should have saved!  You should anticipate your typical monthly expenses, as well as some additional money for automobile maintenance or home repairs- because you know Murphy’s Law will be put into action if you are out of work or injured- that’s exactly when your stove and refrigerator will both require replacing, too.

You should think about any large ticket items you’re considering when deciding how much money to set aside, too.  Are you hoping to take a cruise in two years?  Put a down payment on a new car? Get married?  These are all expenses that normally take a dip into your savings account, but if you have more money in your short term savings you might be able to avoid wiping out your long term savings.

Where Do You Stash the Cash?

There are a number of places you can save money, but when talking about savings options that are short-term and accessible when you need them, there are about four major contenders. 

Checking Accounts
    A checking account is actually intended for many transactions; and that’s the reason they pay little or no interest in most cases.  There are a few online banks offering checking accounts with higher interest though, and are worth looking into.  You can obtain money from a checking account as quickly as you can write a check or swipe an ATM card.

Savings Accounts
   This is the old-fashioned resting ground for your short-term savings.  Everyone in your grandmother’s day had one of those passbook accounts at the local bank and earned 1-2% savings on the money they faithfully deposited every week.  If you want to keep your money in a savings account for your short-term savings, look around for higher interest savings accounts, which may be through online banks, or through promotions with local banks in your area.

Money Market Accounts
   One of the few investment areas that are FDIC insured, money market accounts are often used to stash short term savings.  Money is easily accessible, often with ATM cards or sometimes with checks. Just watch that your balance doesn’t fall below the minimums because you may have to pay fees when that happens.

Money Market Funds
  Money market funds offer the highest possibility for returns, and are as accessible as your typical  bank account.  While money market funds are considered very safe, there is no guarantee that you won’t lose money with this type of investment/savings.

Short Term Savings: Why Do You Need it, How Much Do You Need, and Where Do You Put it? was created by and is property of American Consumer News.