October 5, 2011 12:17 PM EDT
Another major U.S. bank is slapping fees on some of its accounts.
Just one week after Bank of America (NYSE: BAC) sparked fury by announcing a fee on debit cards, Citibank, the consumer banking arm of Citigroup (NYSE: C), said it will levy fees on some of its checking accounts.
CNN reported that beginning in December, Citi customers who have the Citibank Account will be assessed a $20 monthly penalty fee if they fail to keep at least $15,000 in their combined accounts. Formerly, holders had to maintain a minimum balance of $6,000.
Citi clients who hold the EZ Checking account will be charged $15 per month if they fail to maintain a minimum balance of $6,000.
CNN indicated that Citi will gradually eliminate the EZ Checking program and offer custiomers the chance to either replace it with a Citibank Account or its Basic Banking account, which also carry fees.
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Basic Banking account holders must pay a $10 monthly fee -- which was recently raised from $8 -- if their balance slips below $1,500
Other principal banking institutions, including Wells Fargo (NYSE: WFC), JPMorgan Chase (NYSE: JPM), SunTrust Banks (NYSE: STI) and Regions Financial (NYSE: RF) have introduced new fees in recent weeks.
The higher fees are directly the fallout of tighter federal regulations in the wake of the 2008 financial crisis, as well as the sluggish economy, which has led to sharp declines in lending income. New rules will also limit the amount of money banks can charge merchants when they swipe a debit card.
Claes Bell, a banking reporter with Bankrate.com, told CNN: "The regulatory environment has changed a great deal -- particularly with the Durbin Amendment -- and we're seeing the results of that now, we're going to see more large national banks announce fees."
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