Just got a notice of change from PBCT informing me that I will now be paying $25.00 a month for my personal checking account, and $30.00 per month for my business account.
Can somebody explain what happened that caused management to turn on its long-time (40 years now) customers?
That notice was sent out to ALL customers, although most are not affected by it.
If you have an ADVANTAGE account, you're required to have $7500 or get charged $25(now $30) a month otherwise. This increase in price is what that letter was about.
A low minimum balance is all you need to waive the fee. BTW banks are in the business of making money, not of providing a free service to its customers. Go to Home Depot and see if they will give you 3 nails for free.
Most customer oriented banks will give you a free checking account if you use direct deposit of pensions, social security or payroll.
Don't get in the way has the cuctomers make a mad rush for the door.
Direct deposit will usually end fees on personal accounts and I thought most banks, including PBCT have been charging fees on business accounts as far back as I can remember.
They have raised the minimum for free checking w/o direct deposit though.
A lot of banks have started to increase fees to offset both the low interest rate the fed has kept short term rates at and recent limits/ elimination of fees they can charge for various things such as ATM and overdraft fees. This had caused them to reevaluate what products are profitable such as depository accounts that average a lower balance than they deem they need. The theory is that the smaller depositors/low value accounts will either pay the fees or leave. Most banks have loss leader products so you should be able to find a competitor with a better deal on their checking account products. In particular, savings banks and smaller institutions are likely going to be offering some low fee and no fee products that would be a good alternative.