According to this post at WalletPop, the free checking account as we know it is likely at the start of its death throes as banks need to explore more ways to maintain a good profit margin.
WalletPop talked with Hank Israel, a director at Novantas, a consulting firm for the banking and credit card industry, who explains the primary reason why:
Has your bank been charging you extra fees on your various accounts? Saddled with losses from rampant foreclosures and credit card delinquencies, banks and credit unions say they have been forced to raise fees and charges in order to maintain a competitive edge in today’s unique economic environment:
“There is an economic storm that has made revenue fall,” said Michael Moebs, an economist and chief executive of Moebs Services, an economic research firm in Lake Bluff, Ill. “Fee income is basically where banks and credit unions can offset both loan- and investment-related losses.”
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