Citibank to Raise Monthly Checking Fee by 25%
Citibank is raising the monthly fee on its basic checking account.
The new fee will be $10, a 25 percent increase from the previous $8. Customers can avoid the fee if they maintain a balance of at least $1,500 or set up direct deposit and online bill pay.
Citibank also said it will no longer give rewards points for debit card transactions.
But customers will be able to earn more points each year by opening a savings account or activating an automatic savings feature.
The changes reflect a broader industry push to deep relationships with customers.
Banks have been hiking fees and scaling back rewards in the past year, but they've also been offering incentives for those who sign up for more services.
Citi plans to formally announce the changes Friday morning. They take effect in December.