Banking fees hit customers hard

The troubled economy has hit the masses. Banks are smacking customers hard with new fees on checking accounts.

Citigroup Inc.'s Citibank is now charging customers $10 for an overdraft protection fee. J.P. Morgan Chase and Co.'s Chase, Bank of America, and Wells Fargo and Co., have upped their ATM transaction fees for non-members to $3. Overdraft fees and bounced-checks will be the most painful to consumers.

Record highs for checking-account fees, ATM surcharges, bounced-check fees and monthly service fees have been hit due to the new implemented changes. Bankrate Inc., a research firm has conducted this study. Mike Moebs, chief executive of Moeb's $ervices Inc., an economic research firm in Chicago, states, "By the end of 2009, you will start to see fairly substantial increases in overdraft fees." This could be as high as $40 per overdraft.

The troubled economy is a major cause, however it is not the only one. Yahoo Finance has alerted us that the Federal Deposit Insurance Corporation has proposed to increase the rates banks pay for deposit insurance, beginning next year. If the proposal goes through, banks will continue raising costs and fees.

So what can you do? Make sure to keep an eye on your spending. Free sites online such as Mint.com, or even pen and paper can save you a lot of money. You can consider moving your account to an online bank, where there will be no fees, and ATM charge reimbursements. Read the fine print, and ask your bank for a copy of the schedule of fees, which banks are required to have.