CHASE customers are being warned fees are increasing on the bank’s “most popular” checking account.
Monthly fees on the Chase Total Checking account have increased from $12 to $15.
One Chase Manhattan Plaza sign in the Financial District.[/caption]
The change occurred in August 24 this year, meaning customers are now being hit with higher charges each month.
However, there are ways to avoid the monthly fees.
In order to pay nothing, customers should make sure there is at least $1,500 or more in the account at the beginning of each day.
Or, shoppers can also have an average of more than $5,000 in any combination of this account and other linked qualifying Chase accounts.
Lastly, you can avoid the fee by adding money to the account through electronic deposits made into the account totaling $500 or more.
For some people, this means setting up your weekly pay to be transferred into this account or even getting your government benefits paid into it.
Chase quietly made the change after President Donald Trump overturned a rule which cracked down on banks charging overdraft fees.
FEE CRACK DOWN
In 2023, the Biden administration introduced a plan to cap the amount banks could charge in fees, a move which was opposed by major banking institutions including Chase.
The Consumer Financial Protection Bureau had proposed benchmarks curbing the amount banks could charge in line with “their costs or in accordance with an established benchmark”.
The proposal, which was overturned, would have saved families billions each year.
Chase customers are furious about the fee increase, complaining that “no one should be paying any fees to have a checking account”.
SHOPPERS FUME
Another shopper called the fee increase “ridiculous”.
Some said it was easy to avoid the fees, by following the instructions from the bank to introduce mandatory weekly deposits or keep the balance above $1,500.
Chase isn’t the only bank to increase monthly fees, which is part of a wider trend as banks seek to increase revenue.
FEES RISE
A number of other banks are increasing fees for customers and closing locations
- Wells Fargo customers should expect new monthly $15 fee in everyday checking accounts thanks to an October 25 policy change
- Capital One has switched its payment network over to Discover, in a $35 billion move shoppers fear will lead to higher fees
- TD Bank has confirmed it is closing at least 35 branches this year
According to research from Bankrate, average minimum balance required to avoid service fees has reached a record high.
The average monthly fee for interest checking accounts is now $15,65, with the average minimum balance to avoid this fee being $10,705 which is up nearly 5% over the past year.
Bankrate suggests you should shop around and consider alternative banking options.
For example, online banks often don’t charge any fees given they do not have any brick-and-mortar overhead costs.
Also, member-owned and not-for-profit credit unions often offer lower fees on their products and prioritze member service.
