The Deposit War is Heating Up

In the last 24 hours, Bank of American and Chase have announced strategic shifts designed to grow their (profitable) deposit bases.

 

BofA eliminated its eBanking account, which has no monthly fees, and switched its remaining eBanking customers into accounts that require a direct deposit of $250 or more, or a minimum daily balance of $1,500, to avoid a $12 monthly fee. (WSJ)

 

At the same time, BofA’s Merrill Lynch clients are expected this week to receive letters offering them $200 cash if they open a new checking account and receive at least $4,000 in direct deposits in the first three months, Reuters reports. At the same time, clients must also open a new savings account and place a minimum of $25,000 deposit within 30 days, for which the bank will pay them with a 1.35% interest for the first year. (Reuters)

 

JPMorgan Chase JPM -0.68% & Co. is unrolling a $20 billion, five-year investment across its businesses based on benefits from recent tax-law changes, a softer regulatory environment and its overall growth. The largest U.S. bank by assets is planning to open up to 400 branches in new markets across the country, grow its home lending to lower-income consumers and boost wages for some retail-banking employees, among other changes, Chief Executive James Dimon said in an interview. (WSJ)



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