Fees Higher as Banks Seek Additional Revenue
It will still pay to shop around, but finding free checking and other services will get harder.

Most banks will implement some sort of new fee or increase existing fees in the next year. Executives say recent laws banning or capping fees on credit cards and overdraft services leave them no choice but to look for ways to recoup what is said to be millions in lost income.
Most of the large banks are raising the ante on checking accounts, requiring direct deposit of paychecks, higher balances, electronic statements and more to get free checking. Bank of America is testing tiered pricing on its checking accounts, for example. The North Carolina bank launched a new eBanking checking account, which will cost $8.95 per month if customers don’t receive their statements electronically or need to visit a branch. Since the account launched in August, half of new checking accounts fall into this category.
Wells Fargo changed its free checking to value checking, charging $5 a month for customers who don’t have direct deposit or maintain a minimum balance of $1,500. It will charge $2 for check images on paper statements and $10 for transfers to cover overdraft transactions. Banks are also charging 4% for cash advances and balance transfers, up from 3% last year.

Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Expect smaller banks to follow their larger brethren down this path of higher fees. For the moment, though, small banks, which don’t have resources to do extensive market testing, are watching closely to see how bank customers react to higher fees. They’ll have to balance the need for revenue against the fear of losing customers.
Nearly 20% of small and medium companies are considering shifting their banking business in the next year, according to Greenwich Associates’ latest MarketPulse survey. Half of those who are looking to change banks cite fees as the biggest reason. Better service and access to credit are also big reasons small and medium-size companies are looking to switch banks.
"Unfortunately, it seems that this high level of activity is being driven as much by negative factors associated with the recession and credit crunch as by positive developments such as an increased demand for capital in step with an economic recovery," says Greenwich Associates consultant Chris McDonnell.
For consumers -- individuals or companies -- it’s worth exploring what differing banks offer because the requirements for fee-free banking will vary from bank to bank. One package may still work for you.
Get Kiplinger Today newsletter — free
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

-
Stock Market Today: Stocks Soar on China Trade Talk Hopes
Treasury Secretary Bessent said current U.S.-China trade relations are unsustainable and signaled hopes for negotiations.
By Karee Venema
-
2026 Disney Dining Plan Returns: Free Dining for Kids & Resort Benefits
Plan your 2026 Walt Disney World vacation now. Learn about the returning Disney Dining Plan, how kids aged three to nine eat free, and the exclusive benefits of staying at a Disney Resort hotel.
By Carla Ayers
-
The Economic Impact of the US-China Trade War
The Letter The US-China trade war will impact US consumers and business. The decoupling process could be messy.
By David Payne
-
AI Heads to Washington
The Kiplinger Letter There’s big opportunity for AI tools that analyze MRIs and other medical images. But also big challenges that clinicians and companies will have to overcome.
By John Miley
-
The AI Doctor Coming to Read Your Test Results
The Kiplinger Letter There’s big opportunity for AI tools that analyze CAT scans, MRIs and other medical images. But there are also big challenges that human clinicians and tech companies will have to overcome.
By John Miley
-
The New Space Age Takes Off
The Kiplinger Letter From fast broadband to SOS texting, space has never been more embedded in peoples’ lives. The future is even more exciting for rockets, satellites and emerging space tech.
By John Miley
-
Rising AI Demand Stokes Undersea Investments
The Kiplinger Letter As demand soars for AI, there’s a need to transport huge amounts of data across oceans. Tech giants have big plans for new submarine cables, including the longest ever.
By John Miley
-
What DOGE is Doing Now
The Kiplinger Letter As Musk's DOGE pursues its ambitious agenda, uncertainty and legal challenges are mounting — causing frustration for Trump.
By Matthew Housiaux
-
A Move Away From Free Trade
The Letter President Trump says long-term gain will be worth short-term pain, but the pain could be significant this year.
By David Payne
-
The Explosion of New AI Tools
The Kiplinger Letter Workers and consumers soon won’t be able to escape generative AI. Does that mean societal disruption and productivity gains are right around the corner?
By John Miley