Bank of America to start charging a $5 debit card fee

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Beginning early next year Bank of America will begin charging debit card users $5 each month for using their cards nationwide.

“This new fee allows us to continue to offer the service and convenience customers have come to expect from Bank of America,” said Bank of America spokeswoman Betty Reiss in an email. “It will still include: fraud protection, $0 Liability, overdraft prevention, record-keeping, fraud monitoring, and savings programs such as Keep the Change and Add-It-Up.”

The bank did not state an exact date for the new changes. Impacted customers will be notified in writing at least 30 days before the bank begins assessing the monthly fee, Reiss said.

Customers who want to continue using the bank’s debit cards will have to pay the monthly fee, Reiss said.

The fee will apply to customers who use their debit card for purchases, both PIN and signature.

“It’s hard to tell if other banking institutions will begin charging the same fees,” said Erika Ross, Assistant Vice President of Marketing for Isabella Bank and Trust. “Speaking for Isabella Bank, we currently do not charge a monthly fee on our debit cards and it has not been a topic of conversation.”

Customers who don’t use the debit card for a purchase in a given month will not be charged, Reiss said.

Customers who don’t want to pay this fee can continue to access their checking accounts to get cash from ATMs, through online bill pay, and increasingly through their mobile phones and with person-to-person transfers, Reiss said.

“Again, our goal is to ensure that we are clear in our communications with customers about our fees,” Reiss said. “We have structured our products so that customers understand what they are getting and how much it costs.”

Customers that bring more business to the bank won’t have to pay the $5 fee to Bank of America, she said.

She said the the debit card will be one of the many complimentary services available to customers in certain “premium accounts.” Clients that have a Wealth Management/Merrill Lynch and US Trust will not be charged the fee.

Dearborn freshman Amanda Balaka said she would probably leave her bank if they started charging monthly debit card fees.

“I shouldn’t have to pay to give them business,” Balaka said. “Sometimes you don’t have that much money in your account, so those fees make a difference.”