Bank of America will end free checking accounts that were popular among some lower-income customers.
The eBanking accounts launched in 2010 had no monthly fee as long as customers didn’t use a bank teller for routine transactions and received online statements. Now, those customers will be charged a $12 monthly fee unless the customer has a direct deposit of $250 or more or a minimum daily balance of $1,500.
BofA stopped offering the product to new customers in 2013, but those who already had the account were allowed to keep it, according to reports in The Wall Street Journal.
A change.org petition was launched by consumers in response to the product’s cancellation; it had garnered more than 46,000 signatures as of the morning of Jan. 23.
Charges for checking accounts has long been a puzzle for banks, as the accounts are expensive to maintain.
BofA retains a checking account option intended for lower-income customers; the account has a monthly $4.95 fee and doesn’t allow customers to write paper checks or overdraw their account.