The existing customers of Bank of America can expect a change in the fee after the first half of 2011 if they are not paying any attention towards the new banking rules, which are recently stated. Bank of America is trying to recover lost revenue by the new set of rules ordained by the government of America. They are deciding to put fees on a new sort of bank account.
Ways to reduce or avoid BofA fees
In 2010, it was reported that Bank of America is introducing an innovative system which will help to reduce costs. One can cut down the cost by following a strategy that promotes the customers to manage high bank balance and to use maximum bank account features. The Customers who are following these simple strategies will be rewarded by not having these new fees on their bank accounts.
For Instance, following these tasks will help customers to get fees waived:
- Usage of Bank of America’s credit card monthly
- Maintaining a high bank balance in their checking accounts
- Refrain from using tellers.
- By receiving statements electrically.
A monthly fee of $6 to $25 will be charged to the customers who do not follow the set of new rules, announced recently. The Bank of America puts hope in its new strategy that it will cut the overhead and will provide banking services to the customers.
Latest Four-Tier system
To have better banking services, Bank of America decided to modify its old traditional three-tier system to the latest innovative system to manage bank services and accounts known as Four-Tier system. The four tier system comprises eBanking, Preferred, Essentials and Premium.
Premium and Preferred accounts
The difference between the Premium and the Preferred BofA accounts is still quite unclear. Currently, these two accounts are offering the customers up to two savings and checking accounts no monthly maintenance fees, only if one have maintained a combined deposit of $5000 balance and keep depositing $2000 monthly into the account. The premium customers will have more benefits with BofA that is the discounted banking services, interest-bearing checking account and receive fee waivers.
eBanking and Essentials accounts
The BofA’s Essential and eBanking accounts will facilitate the customers to have one checking account and with that one debit card. The Essential account holders will be having maximum BofA online banking services, with just a little mandatory monthly maintenance fee. The next tier is eBanking which is widely available nationally that also provides a benefit of no monthly maintenance fee. Only, if the customers choose an electronic statement system rather than traditional paper statements and by making all the deposits and cash withdrawals through ATMs.
The Bank of America claims that they will also introduce a new reward program known as ‘Platinum Privileges’ only for the customers that maintain more then $50,000 at BofA as total assets.
Except eBanking none of the new announced banking features are implemented until now. The implementation to the new account structure system is under process to set up at Georgia, Arizona and Massachusetts. If all goes well the bank has planned to set up it nationwide later this year.
by Gemma Maddock