Bank of America has made headlines for dismantling eBanking, a checking account that made it easy for customers to avoid a monthly fee. But consumers can still get low-cost checking accounts elsewhere, and these options are unlikely to disappear altogether.
Bank of America introduced the eBanking option in 2010. The account came with a monthly fee of $8.95 that was waived for people who opted out of paper statements and did not use tellers for routine transactions, says Betty Riess, a Bank of America spokeswoman.
But the bank discontinued eBanking for new customers in 2013. It later began migrating existing eBanking customers to its Core Checking account, which carries a $12 monthly fee that is harder to avoid. Last week, Bank of America moved all remaining eBanking account holders to its Core Checking option.[…]“When it comes to banking, people can find what they want at the lowest cost possible if they are willing to shop around and compare their options,” said Hank Israel, director of marketing, propositions and products at Novantas.
Israel doesn’t think that Bank of America’s decision to phase out its eBanking account signals the end of low-cost checking. In fact, he doesn’t think free checking will ever go away entirely.
In order to attract new customers, banks look for ways to stand out from competitors. If every financial institution suddenly moved away from free checking, Israel says, free checking would become the differentiator that banks and credit unions could use to entice new customers.
Read the full article on NerdWallet