Photo (cc) by kiwanja
The new year will bring higher fees for Citibank customers.
According to CNN Money, Citibank is hiking monthly fees for checking accounts in January. Citi Rewards checking fees will go from $20 to $25, and basic checking will be bumped from $10 to $12.
You can avoid paying the fees if you meet Citibank’s minimum balance requirements, which are also changing. CNN Money said:
The average monthly balance you’re required to keep in your account to get a monthly fee waiver will decrease, making it easier for some customers to skirt fees. But lines of credit, mortgages, credit card and loan balances will no longer be counted toward that limit, making it more difficult for other customers.
If you’re a Citibank customer, you’ll be paying quite a bit more than other consumers for your checking services. On average, the monthly fee for a noninterest-bearing checking account is $5.26, where Citibank will soon charge $12, CNN Money said. The average fee for a basic interest-bearing account is $14.76, compared to the $25 Citibank customers will soon pay.
If you’re fed up with paying checking fees, shop around. I have free checking accounts with two community banks, and my situation isn’t unique.
“Free checking accounts with no strings attached are still available at many credit unions, community banks and online banks,” Greg McBride, Bankrate’s chief financial analyst, told CNN Money.
On the plus side, Citibank is also about to become the largest bank to offer their customers free FICO credit scores. That will also start in January.
Where do you bank? Share your comments below or on our Facebook page. And check out the video below for more about eliminating banking fees.