Numerous national banks have introduced new fees for some of their traditionally free services, primarily debit cards. Now Citibank has announced that it will increase fees on its checking accounts starting in December, according to CNN.
Citibank already imposes fees on many of its checking accounts without a certain minimum balance throughout the month. The mid-level Citibank Account and EZ Checking account impose $15 and $20 monthly fees for any account with less than $6,000 and $1,500, respectively. The Citibank Account will rise to $15,000 minimum while the EZ Checking service will require at least $6,000 to avoid fees.
CNN notes a recent study from Bankrate.com found that the majority of checking accounts now come with fees attached, as banks react to the loss of revenue from debit cards and some of the riskier trading practices many had pursued.
"We don't expect to pay nothing to ride the train, it's the same thing with a checking account," Nessa Feddis, vice president and senior counsel of the American Bankers Association, told CNN.
Time reports that the public reaction has proven strongly negative, with 75 percent of readers polled suggesting they intend to switch banks and 22 percent plan to switch to payment methods that remain free, such as credit cards and cash.