Wednesday, October 18th, 2017

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Fee Uproar Sparks Online Banking

Online banking is on the rise with new fees for major banks.American banks have taken some heat recently over the decision to increase fees on services that have traditionally been free. DailyFinance.com reports that one of the unintended effects of the move has been a sudden increase in interest in online banking.

PerkStreet Financial, an online bank founded in 2009, told the news source that it saw its daily activity double when the announcement from Bank of American came on Friday, September 30.

"The Bank of America news woke everyone up and spurred change," Dan O'Malley, PerkStreet's chief executive officer, told DailyFinance.

Though online banks like PerkStreet have some limitations in terms of customer service and certain physical transactions such as checking, the move has so far allowed them to maintain some of the benefits that customers have been outraged to lose at larger banks. PerkStreet still offers free checking with low balances, as well as debit card rewards, while others like ING Direct and Ally Bank offer free checking accounts with interest.

PCWorld notes that there are substantial dangers to these businesses as well, however, with the SpyEye Trojan recently targeting online banks that use text messaging services.

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