FYI: Bank of America to debut account with online focus, charge $8.95 fee for paper statements

FYI: Bank of America online-only checking to debut

Bank of America is rolling out a new “eBanking” account early next month that will charge an $8.95 monthly fee if customers want paper statements or access to tellers for routine statements.

Otherwise, it’s free for customers who rely solely on the bank’s online and mobile banking platforms and ATM network. In the fall, the account will replace the bank’s CollegeEdge checking product, which doesn’t carry a fee.

Offer Details

The new account can be opened online, on the phone or at a branch. When a customer logs on to online banking the first time, a prompt promoting electronic statements appears. Customers must also use ATMs to check balances and for deposits and withdrawals, or they’ll be charged the $8.95 fee. Teller service is available for transactions that an ATM can’t handle, like those involving coins.

There is no initial deposit required, and direct deposit is available. If you open a savings account as well, it is eligible for Bank of America’s “Keep the Change” program, which rounds the cost of debit card purchases up to the nearest dollar and deposits the difference in a savings account.

Behind the Scenes

Banks of all sizes have been introducing or increasing maintenance fees for checking and savings accounts to help offset costs. Most have options for customers to avoid the fees, like using direct deposit or maintaining a minimum balance.

The industry has also been trying to steer customers toward online statements. Few banks have started charging for paper statements, but analysts expect more to adopt this type of fee.

Bank of America is emphasizing the convenience of the new account for customers who are “on the go.” The account was designed to appeal to younger, tech-savvy consumers. But David Owen, payments and products executive with the Charlotte, N.C.-based bank, said the customers who have opened accounts during a test run in Georgia span broader demographics than expected.

More than one-third of the checking accounts opened in Georgia since November have been eBanking accounts, he said.