For many years, Bank of America has been viewed as “one of the only brick-and-mortar bank that offered free checking accounts to their customers. Bank of America was known to care for both their high income and low income customers," the petition's creator, Mel San. Although as of a few month ago a few people perception has changed. Bank
of America has phased out eBanking in the United States. eBanking customers’
accounts have switched to “Core” checking accounts. As a result, these
customers are subjected to a monthly fee (from $8-12). Bank of America spokeswoman Betty Riess told CNBC "This (core checking) is one of the lowest qualifiers in the industry and a great value," It should be noted that
this fee only occurs if one of two conditions are not met:
1.
If the account holder is not able to keep a balance of $1500 in their core
checking account.
2.
If the account holder is unable to deposit $250 a month into the core checking
account (annual deposit of $3,000).
If
a customer is unable to meet one of the two conditions they will be charged a
fee. This poses a threat to customers who are unable to achieve the one of the
two requirements. The customers that would be charged this fee would be people
who do not receive direct deposit or those with low income. By subjecting those
people to a fee, they will have an even harder time achieve the needed balance.
Below is a status from someone on explaining how much the fee would affect
people who are unable to maintain the account conditions ”.
Another
category of people who could be affected by this fee are people who receive
paper checks. Direct deposit is not used by every employer in the United
States, some people still receive paper checks (see chart below). Therefore, a
problem that arises here is the fact that people with certain occupations will
incur a charge not due to the fact they were unable to meet the criteria amount
but because they are not able to perform such an action.
For many years, Bank of America has been
viewed as “one of the only brick-and-mortar
bank that offered free checking accounts to their customers. Bank of America
was known to care for both their high income and low income customers," the petition's creator, Mel San
Here is a quote to from Susan Faulkner, Deposit, and Card Products executive
as to the reasoning for eBanking and Bank of America’s goal for customers “eBanking is designed for customers who prefer
the convenience and control of banking on their own schedule, whenever and
wherever they choose”, she added. “Our customers have highly
individualized needs, and we’re strengthening relationships with them by developing
the products, services and solutions that will help them to manage their
finances more effectively”.
EBanking
Synopsis
Since
2010, Bank of America has offered eBanking account to its customers. With the
choice of e Bank customer could access Bank of America online service without
any fees. This was accessible to customers who did not want to receive a paper
statement or access a bank teller. If eBanking customers wanted to receive a
service from a branch of Bank of America
they would be subjected to a fee. Appealing to customers who do not have as much money or who are unable to direct deposit the choice of eBanking is ideal.
they would be subjected to a fee. Appealing to customers who do not have as much money or who are unable to direct deposit the choice of eBanking is ideal.
“Core
Checking” Synopsis
With
a Core Checking account, there is a subscribed fee along with access to both
online and physical banking services offered by Bank of America.
Sources:
Sources:
http://www.chicagotribune.com/business/ct-biz-bank-of-america-free-checking-20180124-story.html (Video)
https://www.businesswire.com/news/home/20100809006034/en/Bank-America-Introduces-New-eBanking-Checking-Account 