Bank of America’s New Tiered Price System Rewards Good Customers
Bank of America has announced that it will be setting up a new tiered price system for its customers. The idea is to reward customers who manage their accounts responsibly while charging those who don’t higher fees.
The system isn’t only about creating rewards, though. It’s also trying to recover some of the $4.3 billion in revenue it expects to lose from new banking restrictions that will be placed on bank and credit card fees.
The New Tiered System
The new tiered system Bank of America will reward its best customers if they do the following:
- Maintain a minimum current account balance
- Use credit cards a certain number of times per month
- Conduct all banking transactions electronically
The customers that don’t adhere to the above guidelines will be charged higher fees.
The Benefits of Being a “Good” Bank Customer
While your bank may not offer a tiered system to reward its customers like Bank of America does, there are often benefits that come with being what a bank would consider a good customer. For instance, if you open a rewards checking account, you may receive benefits like free online banking, high interest rates, cash back on debit card purchases and more.
However, in order to receive the benefits, you must adhere to specific guidelines like making a specific number of non-debit transactions each month, setting up and using direct deposit and accepting e-statements.
In the case with most banks, being a “good” customer is optional depending on the type of account you have, but Bank of America seems to be placing a requirement on all customers to help increase profits. With these forced incentives in play, it will be interesting to see how many customers BofA will manage to retain.
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