Citi hikes fees on checking accounts (Thank You, Dick Durbin!)

CNNMoney ^ | 10-5-11 | Jessica Dickler

[tcrlaf]

NEW YORK (CNNMoney) -- The fees keep coming. Citi is the latest big bank to slap customers with a round of fee hikes. This time, on its checking accounts.

Starting in December, customers who hold its mid-level Citibank Account will be charged $20 a month if they fail to maintain a minimum balance of $15,000 in their combined accounts. Previously, account holders had to carry a minimum balance of $6,000.

At the same time, customers who have the bank's EZ Checking account will start being charged $15 a month if they don't carry a minimum balance of $6,000. Citi says it is phasing out the EZ Checking package, which currently carries no monthly fee, and is instead offering customers either the Citibank Account or its Basic Banking account, which also carries a fee.

Last month, Citi said it is hiking the fee on its Basic Banking account from $8 to $10. Customers will be able to avoid paying the $10 fee by either maintaining a minimum balance of $1,500 or by making one direct deposit and one automatic online payment through their checking account each month, said Citi.

[tcrlaf]

HOPEY-CHANGEY, FOLKS! More unintended Consequences of Dodd-Frank, and the Durbin Amendment!

""The regulatory environment has changed a great deal -- particularly with the Durbin Amendment -- and we're seeing the results of that now," said Claes Bell, banking reporter with Bankrate.com. Going forward, "we're going to see more large national banks announce fees." "

[RushIsMyTeddyBear]

So is DICK Turban going to call for a bank run on Citi, now?

[albie]

$15,000 total!? Or else $20.00 per month?! Wow. Tough decision. $15,000 in a savings/checking wouldn’t get you $20.00 in interest. Time for either a credit union or a jar in the back yard.

[Responsibility2nd]

Naaahh. The Dick will just see this as more Wall Street greed and then call on his butt-buddies (Dodd, Frank and Obama) to Nationalize the banking industry.

[MichaelCorleone]

When will the electorate learn not to ‘demand action’ from the government?

There has probably never been a net benefit resulting from any regulatory action.

Wake up America!

[Mr. Bird]

The more I think about this, the more I think people are being played.

This is all about bank demonization, and the freakshow "occupying" Wall Street is loving it. The reality is that most people can get "free" checking (not counting foreign ATM fees and some other routine fees) at any bank. Note the article says Citi's "midlevel" account. What the hell is that?

People need to continue to press the truth, that these fees are a direct result of congressional action.

Worse, BofA and Citi aren't fighting back in the press. Kinda like Ford shutting up after the ad about bailouts...

[Major Matt Mason]

Now that Congress has already declared banks like BoA and Citibank as too big to fail, no surprise that these banks would take the liberty of adding more fees to their structure. What is Congress going to do, try to shut them down?

[RockinRight]

Well to be fair, that's a "package" account...they do have this other option:

Last month, Citi said it is hiking the fee on its Basic Banking account from $8 to $10. Customers will be able to avoid paying the $10 fee by either maintaining a minimum balance of $1,500 or by making one direct deposit and one automatic online payment through their checking account each month, said Citi.

A lot, but not all, people have direct deposit can can easily meet this account's requirements.

Again though, Thank You Dick Durbin...NOT...

[jagusafr]

And USAA posted on its website that checking and savings accounts will continue to be free, ‘cause that’s what’s right and what their customers expect.

Have I mentioned I love USAA?

Colonel, USAFR

[Buckeye McFrog]

Now I’m more sure than ever. The Democrats set this up.

Send the banks in search of new fees by passing legislation. Organize this “Occupy Wall Street” movement, and then run against “greedy bankers and Wall Street” in 2012.

And these banks are stupid enough to take the bait.

[Buckeye McFrog]

Dick will just see this as more Wall Street greed and then call on his butt-buddies (Dodd, Frank and Obama) to Nationalize the banking industry.

That's probably too big a grab in one swoop. I'll tell you what is coming though, "Public Option" Banks. It will start at the state level.

[Tublecane]

“to Nationalize the banking industry”

What country do you live in where the banking industry isn’t nationalized? Ever heard of the Federal Reserve System?

[Tublecane]

“The Democrats set this up.”

It’s not that. It’s just a combination of them always badmouthing Fat Cats and the inevitable bad results of their economic policies. They say something’s wrong, they act, which makes things worse, which gives them a reason to act more, which makes things worse yet, which gives them more impetus to act, which...you get the point. We call it a vicious cycle and a self-fulfilling prophecy.