NEW YORK — Citibank made sure to draw attention last week to its lack of fees for using debit cards after news broke that its biggest competitor would start charging them.
But at the same time, the bank was letting its customers know they’ll soon have to meet stricter requirements to avoid monthly checking-account charges.
The main changes will be seen by customers with mid- tier checking accounts, which offer the potential for earning interest and a few other perks. Starting in December, Citi will charge $20 a month on these accounts, unless the customer has combined balances of $15,000 or more in checking, savings and investment accounts or loan balances.
The fee was previously waived for combined balances of $6,000 for that level of account.
Customers also pay $2 fees for using non-Citi ATMs if they don’t meet the balance requirement.
For Citi customers who used a product called “EZ Checking,” which is being phased out, the change is more drastic. For the past year, EZ account holders were able to avoid fees if they had combined balances of $1,500. If they didn’t have that much, the fee was $7.50 or $9.50 a month, depending on their state. Before that, those customers were able to avoid fees with a combination of direct deposit and online bill paying.
Customers who can’t meet the requirements may find it necessary to switch to Citi’s basic checking account. The bank last month raised the monthly fee on that account to $10 from $8, unless customers maintain $1,500 in combined balances or use both direct deposit and online bill payment at least once per month.
