Bank of America has announced that it will begin implementing a $5 monthly fee for debit card users. Whether you spend $5 or $5000 per month with your debit card, Bank of America plans to take $5, however it would not charge the fee for debit card holders who don’t use them over the course of the month. After recent legislation aimed to limit the amount banks can make off their account holders, many believe this is just another way for banks to pad their profits.
Debit Card Use
So how many people would this change actually affect? In Ask Your Target Market’s latest survey, only 14.3% of respondents said they do not have a debit card. Of those who did, 20% use them daily and 24.3% use them every few days. 14.5% use them weekly, 5.5% use them every few weeks, 5.5% use them monthly, and 16% use them rarely.
Currently, Bank of America is the only bank known to be implementing such a charge. Of the major nationwide banks, it is the most used by AYTM.com’s respondents, with 14% saying they bank there. 12% use Chase, 2.8% use PNC, 2.5% use Citibank, 20.8% use credit unions, and 51.5% use other banks.
Even though most banks don’t have a $5 monthly charge for debit card use, all of them have some fees. And 42% of respondents said they think their current bank fees are pretty reasonable. 21.3% said they are somewhat reasonable, and 21.3% said they are not reasonable.
What Would You Do?
Though many seem to be okay with their current fees, Bank of America may be skirting a line with their new proposal. When asked what they would do if charged the $5 monthly fee for debit card use, 42.5% said they would switch to a different bank and 38% said they would stop using their debit card. Only 6% said they would keep using their current debit card and just deal with the fees. And of the Bank of America customers, only 3.6% said they would continue using their debit card and pay the fees.
Bank of America might make more money with this new fee, but they could just be driving away customers. Will people switch to a different bank, or will most banks follow suit and start implementing similar fees in the near future?