Citibank slaps customers with $15 monthly fee for checking
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Another day, another new bank fee.
As the uproar swelled over Bank of America Corp.’s planned $5 monthly charge for debit cards, megabank rival Citigroup Inc. was telling checking accounts holders that it would sock them with a $15 a month fee unless they maintain a balance above $6,000.
Customers such as Cheryl Holt of Burbank were complaining to The Times about the letters they received this week from Citibank, Citigroup’s retail arm. Holt said she opened the envelope and was confronted by what she called an ‘absurd salutation.’
‘Customers like you have told us that what they want from their banks are simple options and great rewards,’ the giant New York bank said. ‘We heard you and are writing to let you know that we are making some changes to your EZ Checking Package.’
The demand for $15 a month -- $180 a year -- for a checking account sent Holt out Friday morning on a quest for free checking, an endangered service as big banks, awash in deposits, raise fees and cut costs to keep their profits up despite the sluggish economy.
‘I’m on my way out the door right now,’ Holt wrote in an email to The Times, ‘off to start a new account at my nearest credit union.
‘Should have done it years ago!’
Citi representatives didn’t immediately return a call for comment.
UPDATE: A Citibank spokeswoman said customers can avoid the fee by opting for a “basic†checking account, having at least one direct deposit made into it each month, and making at least one automated bill payment from the account monthly.
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-- E. Scott Reckard
