NEW YORK (TheStreet) -- Citigroup (C) raised its monthly service fee on basic checking and savings accounts, joining the wave of banks looking for offsets from lost revenues following new banking regulations.
Customers would have to pay a flat $10 monthly service fee for the "Basic Banking" package, up from $8 currently.
However, the bank said it would "simplify" banking relationships by offering ways for clients to avoid the monthly service fee.
Customers can avoid the fee if they make one direct deposit and online bill payment every month. Clients can also avoid a monthly service fee by maintaining $1,500 in combined average monthly balances in their Basic Checking and linked Basic Savings accounts.Currently, customers need to perform a combination of five qualified transactions a month to avoid the monthly fee on basic checking accounts. Citigroup will not charge additional fees for debit card usage or online banking payments. And it maintained that it was increasing its "ThankYou" banking relationship rewards program. rewards program, even though it stopped offering reward points on debit card transactions. Banks have been finding ways to recoup lost revenues following new regulations that limit overdraft fees and fees banks charge retailers for debit card transactions. JPMorgan Chase (JPM) and Wells Fargo (WFC) have scaled back rewards programs. Chase and Wells are also testing $3 monthly fees for debit cards in select areas. --Written by Shanthi Bharatwaj in New York
>To contact the writer of this article, click here: Shanthi Bharatwaj. >To follow the writer on Twitter, go to http://twitter.com/shavenk. >To submit a news tip, send an email to: email@example.com.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV