Chase Bank warns It Will End Free Checking Accounts

Big Picture

The country’s biggest retail bank, Chase Bank, is warning its 86 million customers to brace for potential charges on previously free services like checking accounts. This shift comes as the bank plans to pass on the costs of new regulations capping overdraft and late fees.

Tight Focus

Marianne Lake, who runs Chase Bank, predicts significant cost increases in everyday banking for Americans. She argues that new rules to limit overdraft and late fees will force the bank to charge for free services like checking accounts and wealth-management tools.

Key Detail

Lake expects other banks to follow suit. “The changes will be broad, sweeping and significant,” Lake says, emphasizing that those who can least afford it will be most affected. Access to credit may also become tougher.

Bottom Line

Some of the new banking regulations may be changed or weakened if Donald Trump is elected president, but Lake warns that Chase’s services like free checking, credit score tracking and financial planning probably won’t be free anymore and customers should plan accordingly.

Read more at The Daily Beast.