Our Terms of Service and Privacy Policy have changed.

By continuing to use this site, you are agreeing to the new Privacy Policy and Terms of Service.

U.S. Bank may end free checking

By Blake Ellis, staff reporter


NEW YORK (CNNMoney) -- U.S. Bank is one of the last of the megabanks to offer free checking. But that may be about to end.

The Minneapolis-based bank recently hinted that it will add fees to its checking accounts -- and even possibly to its debit cards -- as it attempts to recoup revenue lost under new regulations.

"We're not going to be a late follower anymore, we're going to be right in the game ... we no longer have the luxury of waiting," said U.S. Bank (USB, Fortune 500) CEO Richard Davis on a recent earnings call with investors. "We'll see sometime in the early or middle part of this year our own actions in making sure that we have fair pricing for our checking products."

The bank is currently gauging the success of its competition to figure out "what consumers are willing to accept as a price to have a checking account, a debit card or some of the ancillary products that go with it," he added.

Most of the megabanks -- including Bank of America (BAC, Fortune 500), Citi (C, Fortune 500), Chase (JPM, Fortune 500) and Wells Fargo (WFC, Fortune 500) -- have already taken the plunge, doing away with free checking and introducing monthly maintenance fees to accounts.

"Like many banks, we are assessing our products and services in light of changing industry dynamics," a U.S. Bank spokeswoman said in a statement. "We will be communicating with customers in the next few months, well in advance of any changes."

The spokeswoman said details have not been finalized or announced and that "there will continue to be many options for customers to have a checking account without a monthly maintenance fee."

Maintenance fees can often be avoided if you meet certain requirements -- like making a certain number of deposits, carrying a minimum balance or using your debit card a specific number of times. To top of page

Overnight Avg Rate Latest Change Last Week
30 yr fixed4.01%4.01%
15 yr fixed3.18%3.18%
5/1 ARM3.20%3.24%
30 yr refi4.02%4.01%
15 yr refi3.19%3.19%
Rate data provided
by Bankrate.com
View rates in your area
 
Find personalized rates:
Index Last Change % Change
Dow 20,723.18 63.86 0.31%
Nasdaq 5,913.25 15.70 0.27%
S&P 500 2,367.99 6.86 0.29%
Treasuries 2.42 0.03 1.34%
Data as of 3:08pm ET
Company Price Change % Change
Bank of America Corp... 23.94 0.59 2.53%
Chesapeake Energy Co... 5.91 0.10 1.72%
Advanced Micro Devic... 14.00 0.29 2.11%
Freeport-McMoRan Inc... 13.42 0.71 5.54%
General Electric Co 29.89 0.21 0.71%
Data as of 2:53pm ET

Sections

The struggling retailer, which also owns Kmart, recently warned that it could have trouble staying in business. So why is its stock up nearly 50% in the past week? Two big investors are buying more shares to prop it up. More

A new study found that the number of Mexicans living in poverty, by various measures, increased since NAFTA became law. More

Facebook will expand its fundraising tools to include personal fundraisers, not just nonprofits. More

The Senate voted to repeal an Obama-era retirement rule Thursday. State and city IRA plans for small business workers could be in jeopardy. More