bank rates

Bank Of America Drops Debit Card Fee Plan

It was the last big bank to drop debit card fee plans.A little more than a month ago — when Bank of America unveiled its now infamous $5 monthly debit card fee — we used the following headline: “Banks Will Stop Fee Foolishness Only When We Close Our Accounts In Protests.”

This particular flavor of fee foolishness has been halted.

Bank of America caved today. Savers won. The nation’s second largest bank has dropped its debit card fee plans.

It was the last big bank left standing in what had become an enormous PR disaster that spawned huge consumer protests, including a social-media fueled movement to ditch big banks — Bank Transfer Day.

Here’s what Bank of America’s co-chief operating officer, David Darnell, said in a statement:

“We have listened to our customers very closely over the last few weeks and recognize their concern with our proposed debit usage fee. Our customers’ voices are most important to us. As a result, we are not currently charging the fee and will not be moving forward with any additional plans to do so.”

But is this retreat enough?

Will consumers relent and keep their money at places like Bank of America now that all of the nation’s biggest banks have vowed to stay away from debit card use fees?

Or is it too late for that? Have the public’s eyes been opened to how banks operate — and what the competition like community banks and credit unions have to offer?

Some of the supporters of Bank Transfer Day quickly took to the group’s Facebook page after the Bank of America announcement.

The consensus: Too little, too late.

Here’s a sampling of the responses:

  • You want to take back the debit card fee, I don’t care! My tax payer money bailed you out and you don’t want to play fair? Too big to fail? We’ll see about that. Don’t stop transfering your money out of big banks and go for credit unions or small banks!
  • We (are) already about 85% done moving all of our money.
  • Bank of America thinks somehow it can save itself by dropping the debit card fee, and at the same time continues with other big banks to suck the life blood out of the nation’s unemployed while providing free services to the rich. Let your money follow your heart, and support Bank Transfer Day.

My guess is this will suck a little bit of the life out of the bank protests. Until, that is, those banks try to impose another ridiculous fee.

Don't miss out on the next bank deal. Get the newest deals delivered straight to your inbox!

Comments (0)
1 Star2 Stars3 Stars4 Stars5 Stars (3 votes, average: 5.00 out of 5)
No Existing Comments

Comments are closed.