The Austin, Texas-based credit union also removed fees for wire transfers and overdraft protection.
CEO Kendall Garrison said this could be a change for the industry, with bank fees rising to record highs and traditional banks charging more than ever. Interest that depositors earn on checking and savings accounts is also at an all-time low, according to the release.
“The banking industry is awash in half-measures around fees,” he said. “At Amplify, we see things differently. You are trusting us with your money — not the other way around. If we really want to be a force for change in the banking industry, then not charging our members to access their own deposits was the obvious place to start.”
Stacy Armijo, chief experience officer, said the time when the ratio between interest rates and account fees was sensible is pretty much gone.
“When we realized our members pay an average of $33 per year in fees on deposit accounts — and yet the vast majority of them also earned less than $10 in interest over that same time — we realized it was time to change our business,” Armijo said in the release.
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Meanwhile, PYMNTS recently reported that American Express has rolled out an all-digital consumer checking account for eligible consumer card members in the U.S.
Read more: AmEx Launches First All-Digital Checking Account
Called American Express Rewards Checking, it comes with membership rewards points for eligible debit purchases, an annual percentage yield that’s 10 times higher than the national rate and purchase protection.
“Our Members want more banking products and services from us,” said Eva Reda, executive vice president and general manager, consumer banking, American Express. “And they want more from their checking account, without giving up the benefits that are important to them.
“That’s why we built Amex Rewards Checking to deliver more value for Members with the powerful and trusted backing of American Express. It’s digital checking without compromises.”
