ArcaMax Publishing, Inc.

From the ArcaMax Publishing, Business News Newsletter:
http://www.arcamax.com/news/businessnews/s-575092-581003

Bank fees rise, bailout notwithstanding

NEW YORK (UPI) -- U.S. banks are increasing fees for a variety of transactions in spite of massive taxpayer bailouts, industry research groups said.

In June, Bank of America increased its monthly checking account fee from $5.95 to $8.95. Citigroup and PNC Financial now charge 3 percent for using a debit card overseas, the Charlotte, N.C., Observer reported Friday.

Researchers at Moebs Services said fees at large banks average 20 percent higher than fees at small banks. Another research group, Bankrate.com, said bank fees for automatic teller machine withdrawals rose from $1.78 per transaction in 2007 to $1.97 in 2008.

Stop-payment fees now average $30, twice what it cost 10 years ago, Moebs said.

Scott Talbott at the bank lobby group Financial Services Roundtable said the increased fees were the result of the economic downturn, which had increased risks for banks. "There is an increased riskiness around repayment," he said.

But Moebs chief economist Michael Moebs said: "We've never seen a price increase during a recession. What the bankers are saying is that 'I want to maintain my revenue.'"

This news arrived on: 07/03/2009
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