July 5, 2011
Even with the Fed’s decision to raise the debit interchange limit to 21 cents, as opposed to the 12-cent cap that was initially proposed, USA Today reports financial institutions are still expected to lose around $10 billion in annual revenue.
“And banks have made no secret about how they’ll recoup that money: with higher fees for everything from checking accounts to penny rolls,” the newspaper continued. “The Fed rule exempts small banks and credit unions from the cap. But representatives of those institutions say the carve-out won’t work, and that they’ll be forced to raise fees, too.”
USA Today this week had a roundup of some of the new bank service fees consumer can soon expect to see:
– Bank of America will assess a $5 fine for lost debit cards starting in September.
– U.S. Bank will raise the annual cost for individual retirement accounts to $30 from $10. (Customers who have a balance of $25,000 or more in an IRA or other U.S. Bank accounts will be exempt from the charge.)
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– Expect an increasing number of banks to raise ATM fees while eliminating free checking , according to USA Today.
Retailers are unhappy with the Fed’s decision to up the debit interchange limit to 21 cents, reports the newspaper, which could result in few discounts at stores. Click here to read more.
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