Bank of America Considers Tiered Fee Structure

Bank of America
Bank of America

Bank of America (BAC) may introduce a tiered fee structure modeled on mobile phone service contracts.

Under the proposed scheme, the bank would reward customers who maintain minimum current account balances, use their credit card a certain number of times each month, or do all their banking online, The Financial Times reported. Customers who don't do these things would be charged more.

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The tiered fees would allow the bank to recuperate some of the $4.3 billion in revenue it expect to lose as a result of federal restrictions on bank and credit fees, without imposing across the board fee increases.

"We're not guaranteeing that we will recover all of the revenue lost as a result of the new regulations, but over several years we think we'll get back a good share," Joe Price, who runs the bank's consumer unit, told The Financial Times.

Bank of America will begin testing different price structures this year.