- JPMorgan Chase's (JPM) service charges during the fourth quarter of 2010 -- the first full quarter under the requirement that customers sign up for ATM and debit card overdraft protection in advance -- totaled $1.1 billion, declining 18% from a year earlier. The company said in its annual 10-K filing on Tuesday that "as a result of the Durbin Amendment, its annualized net income may be reduced by approximately $600 million per year."
- For Wells Fargo (WFC), fourth-quarter 2010 service charges on deposit accounts totaled $1.0 billion, declining 27% from a year earlier. The company said during the fourth quarter of 2011, it saw a "$365 million decline in debit interchange fees."
- For Citigroup (C), which has a much smaller U.S. deposit base than the other "big four" club members, fourth-quarter 2010 service charges on deposit accounts actually increased 1% year-over-year, to $158 million. The company said during the fourth quarter of 2011, main subsidiary Citicorp saw a slight year-over-year increase in retail banking revenue, to $4.1 billion.
The benefits of electronic banking.Switching over to electronic banking is a winning proposition for all parties:
- With electronic banking, it is very easy to keep track of your records. In this day and age, a three-ring binder of bank statements seems a little dated, and it takes up a lot of room, and Murphy's Law indicates that the key statement you need, will be missing.
- With electronic bill paying, you save on postage, you avoid manually writing checks, filling out a check register, etc., and avoid check printing fees. It's also easy to pull up records to prove payments have been made.
- You avoid a monthly service charge.
- The bank's costs are reduced, since they no longer have to buy paper and envelopes, print and send expensive monthly statements.