Bank of America takes heat for dropping low-fee checking account

Spokesperson says the bank remains competitive with rivals in offering accounts for the budget conscious

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Bank of America is taking heat for a decision to end one of its no-free checking accounts.

Those protesting the decision said the move was a blow to low-income customers, a charge the company denies.

“We introduced eBanking back in 2010 and it was designed for tech-savvy customers who wanted to bank on the go,” said Bank of American spokesperson Betty Riess.  “It was not targeted to low-income consumers nor was it a “free” account. The account was $8.95 month, which was waived if customers did not receive paper statements and didn’t use tellers for routine transactions.”

According to Riess, the account became obsolete and was not offered to new customers a few years ago. This came after mobile banking became more widespread.

The bank also decided it did not want to discourage customers from coming to the branch and learning more about products and services and work with personal bankers.

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Riess pointed to options such as  Core Checking account, which allows access to mobile banking and offers ways to avoid a monthly fee.

Another option is the SafeBalance account., which, according to Riess, has a  $4.95 monthly fee and does not allow overdrafts, an approach that  “helps customers manage their money and spend only what they have.”

Banks have come under fire over the years for what some see as excessive fees for bounced checks.

Riess said the bank does not disclose the number of affected account holders, but added that the number of people affected was very small when compared to the bank’s total number of accounts.

In the meantime, the banking giant is facing a public relations and social media  headache, with a change.org  petition that has been signed by 50,000 people.

Rival banks are also expected to pounce on the news. Most offer some version of low or no-fee checking, often with a breaking for direct deposits of pay or benefit checks.

Bank of America has been expanding its branch network in northern  Delaware, the home to a number of operations, at a time when it has been  closing branches elsewhere.

B of A  employs thousands of Delawreans, but does not release employment numbers  on a state by state basis.

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