Bank of America's new $5 per month fee for debit cards provides Bofa customers yet another reason to head for the exits. Starting next year, Bank of America will charge customers $5 per month for the use of any debit card. Bofa is simply attempting to skirt recent reforms limiting the amount charged to merchants on debit card transactions. Banks previously charged merchants 44 cents on average for debit card transactions. New rules place cap those charges at 21 to 24 cents per transaction.
Consumers should be aware that debit cards are an inferior alternative to credit cards because of the additional protections provided to credit card customers. In addition, it's puzzling why anyone would want to do business with a financial institution that has caused untold damage to the economy as a result of blatantly obvious mortgage and securities fraud.
If you still have an account with Bank of America, give your local credit union a call. If you are unfortunate enough to have a mortgage with Bofa, you can refinance at record low interest rates.