Not Gone Completely: Bank of America's Online Free Checking Account
On July 1st we saw the implementation of new overdraft laws across the country. Now, when we make an A.T.M. withdrawal or pay with a debit card and don’t have enough money in our account, we will be declined instead of covered and charged an overdraft fee. We can give the bank permission to spot us the money and charge us a fee, but we highly discourage this. As we said before, it’s worth the minor embarrassment of being declined instead of paying the bank extra fees.
To counter the loss in income from these new laws, there was speculation about banks ending free checking. Our solution was to set up direct deposit. But it looks like the end of free checking might not be in the future…at least for Bank of America users.
Instead of calling it off completely, the bank is implementing a new type of free checking: As long as account holders don’t use a paper statement or make deposits or withdrawals with a teller, their account will be free. This is a shift towards online banking, which we already strongly recommend!
We hope other banks will follow suit. Make sure you've checked out the LV Checking Basics, and you know what your bank is doing.