Banks are threatening to end free checking. Don’t panic
CNN
Most banks offer free checking if, for instance, customers have their paycheck direct deposited or they maintain an average minimum balance.
Most banks offer free checking if, for instance, customers have their paycheck direct deposited or they maintain an average minimum balance. The majority of people with checking accounts (73%) take advantage of the option, according to a 2023 Bankrate.com survey. But if regulatory costs go up for banks, free services like checking may go away, at least if they follow Chase’s lead. Marianne Lake, the head of Chase Bank, told the Wall Street Journal last week that Chase might stop offering free checking and other free banking services. “Consumer banking is predicated on banks providing services for free to consumers such as checking accounts, debit cards and electronic bill paying. The model then relied on banks being able to recoup those costs elsewhere in the consumer banking business, such as with debit interchange fees, overdraft fees, late fees and higher interest rates,” Jaret Seiberg, financial services analyst at TD Securities, wrote in an analysis of Lake’s comments. The Consumer Financial Protection Bureau, for instance, has finalized a rule that caps credit card late fees at $8. However, it is not in effect yet because it is being litigated. The CFPB also has proposed that banks be limited in how much they can charge customers in overdraft fees. Separately, the Federal Reserve is expected to further limit how much banks can charge merchants when customers use their bank debit cards to make a purchase. While banks — especially smaller ones trying to attract deposits — may still have to offer incentives to bring in customers, one consumer advocate doesn’t see customers running for the exits if their bank does in fact impose a fee on their checking account at some point in the next couple of years.
Nippon Steel is expected to re-file its application for a national security review by American regulators of its $15 billion takeover bid of US Steel, sources familiar with the matter told CNN on Tuesday, buying Japan’s largest steelmaker an additional 90 days to close its acquisition of an American rival after political opposition emerged in an election year.
So far, the attacks that targeted Iran-backed Lebanese militant group Hezbollah members through their pagers have had devastating consequences. At least nine people, including an eight-year-old girl, were killed, and at least 2,800 were wounded. Over 150 of those injured are in critical condition, according to the Lebanese health minister.