Bank of America Corp. and other major banks have scrapped plans to charge customers for using debit cards, but the companies are almost certain to raise or introduce a host of other fees to protect their profits.
Consumers should prepare for even higher checking and overdraft charges, analysts said. If they use another bank’s automatic teller machine, they may well get hit with higher ATM fees. And if they want to receive paper statements in the mail, they may end up paying for that, too.
“The debit card fee was only one of several different levers that banks can pull,’’ said Greg McBride, an analyst for Bankrate.com, a website that tracks rates on checking accounts and other financial products. “Consumers should continue to be vigilant about the prospect for new and higher fees.’’
Banks have been steadily raising fees to make up for losses from the weak economy, troubled housing market, and tougher regulations since the financial crisis in 2008. Over the past year alone, the average monthly checking account fee has increased by 76 percent, to about $4.40 a month, according to Bankrate.com. And the average ATM surcharge recently hit a record high of $2.40 per withdrawal, up 3 percent from last year.
Analysts expect banks will probably continue to raise monthly checking account fees or make it harder for customers to avoid those fees by raising the minimum balance requirements. In August, Bankrate.com found just 45 percent of standard checking accounts were free, down from 76 percent two years ago. Bankrate also found the average minimum balance required to avoid monthly checking fees was $585, more than double the minimum last year.
It’s unclear how much higher fees will go, but analysts said banks will raise fees when and where they can. For example, TD Bank, the fourth-largest retail bank in the state, boosted a variety of peripheral fees last month. For instance, some customers will now pay $15 for incoming wire transfers, up from $10; $5 for money orders, up from $4; $8 for a certified check, double the old charge; and $30 for stop payment orders, up from $25.
Banks may also come up with new fees. Banking analyst Bart Narter said banks could charge customers more for costly services such as processing paper checks or mailing paper statements.
“I would suggest raising prices on things that cost money,’’ said Narter, senior vice president for Celent, a financial consulting company based in Boston.
As fees go up, consumers should expect rewards programs to shrink, analysts said. For instance, Citizens Bank, the second-largest retail bank in Massachusetts, plans to stop offering its GreenSense rewards program at the end of this month.