Chase Bank, operated by JPMorgan Chase (JPM) , recently scored a major win shortly after President Donald Trump took office in January.
In 2023, the Biden administration announced plans to cap the amount banks can charge customers in overdraft fees, a move that Chase and other banks opposed.
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Last year, the Consumer Financial Protection Bureau even proposed a rule that would only allow banks to charge overdraft fees that are “in line with their costs or in accordance with an established benchmark.”
The CFPB’s proposed benchmarks included $3, $6, $7, or $14, which could have saved families about $3.5 billion yearly.
Related: JPMorgan Chase CFO issues stern warning to employees
In response to this proposal, JPMorgan Chase CEO of Consumer and Community Banking Marianne Lake warned that the bank will have to pass down the cost to consumers if the change goes into effect, according to a report from the Wall Street Journal last year.
This includes charging customers for a plethora of historically free services, such as access to wealth management tools and checking accounts.
However, in May, President Trump signed a resolution to overturn the Consumer Financial Protection Bureau’s final rule to cap overdraft fees.
Chase Bank makes a major change, impacting customers
Despite this recent win, Chase has decided to increase its monthly service fee for Total Checking accounts.
In a new update on its website, Chase warns customers that starting Aug. 24, the monthly service fee for this type of account will increase from $12 to $15.
However, the bank lists three ways customers can avoid this fee. First, if electronic deposits of $500 or more from payroll or government benefit providers are made into the account each statement period, the fee can be avoided.
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Also, customers won't be charged the fee if the account balance at the beginning of each day is $1,500 or more.
Last, if the average beginning day balance of $5,000 or more is in any combination of a Total Checking account and linked qualifying Chase checking, savings, and other balances, customers won’t be charged the fee.
Chase customers aren’t too thrilled about the fee increase
In response to the change, a few customers took to social media platform Reddit to express frustration with the fee increase.
“I got a email today saying that the monthly service fee is increasing from $12 to $15 starting August 24 for me, why are they charging so much??? Chase has been my first bank for a few years now and I'm considering changing, any bank recommendations?” wrote a Chase customer in a Reddit post.
“What are they doing different to justify the $3 increase? Or better yet to justify a service fee at all! When you can get a checking and savings account at a credit union for free and everything else discounted and have more branch locations and ATM locations thanks to the CO-OP network it just doesn’t make sense in this day and age to pay chase $15 a month for literally nothing. They are offering nothing and charging you money for it,” wrote another Redditor.
“No one should be paying any fees to have a checking account. There are too many free checking account options,” said another user on Reddit.
Chase's latest move could backfire
The move from Chase Bank comes after JPMorgan generated $18.8 billion in net revenue through its consumer and community banking business during the second quarter of this year, which is about 6% higher than what it earned during the same time period in 2024.
Monthly banking fees have been on the rise over the past few months. According to a recent survey from MoneyRates, the average monthly maintenance fee for checking accounts is now $13.51, up from $13.24 in the previous survey taken six months ago.
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- Jean Chatzky shares major statement on Social Security
- Tony Robbins has blunt words on IRAs,401(k)s
Increasing checking account fees can risk pushing consumers to explore other banking options, especially when they are battling inflation and higher costs of living.
A recent survey from Bankrate found that two in three checking account holders do not pay any checking fees (including monthly service fees, overdraft fees, and ATM fees) each month.
It also found that having no/low monthly fees is the top reason why consumers keep the same checking account with the same institution.
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