Bank of America to debut free online account

New online account

In a bid to get as many of their customers online as possible, as well as cutting down on the number of paper statements that are sent out per month, the Bank of America has announced it is to debut a new online-only account that will be free to those who dispense with regular paper statements and branch-based transactions.

The scheme will be launched next month and will cost a $8.95 monthly fee to those customers who still want access to paper statements and tellers. It is designed to replace the bank's current CollegeEdge account that does not carry a fee.

Account details

According to Reuters, the new account can be opened online, on the phone or at a branch. When a customer logs on to online banking for the first time, a prompt appears, promoting electronic statements. 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.

Changing times

The announcement of the new account scheme comes after the introduction of new rules by the Bank of America that caps overdraft fess. It has led to speculation that the days of free bank accounts could be a thing of the past, as well as a deliberate shift to online banking.

Bank of America's rival Wells Fargo eliminated free accounts for new customers on 1 July, charging a $5 monthly fee to account holders instead.

Bank of America's new online-only service has been trialled in Georgia since November, with plans to take it nationwide next month. The move was in response to shrinking customer demand, as more and more users utilize online and mobile banking. As a result, Bank of America announced plans last July to close 10 percent of its 6,100 branches.

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