PNC Bank to Kill Free Checking

by. Simon Zhen

PNC Bank is the only top-10 U.S. bank to offer a free checking account, but that will soon change. The Pittsburgh-based megabank plans to replace its free checking account with one that has an avoidable monthly fee, similar to the basic checking accounts offered by other major banks. Additionally, PNC will raise the monthly service fee on some other accounts.

“This is part of our long-term strategy to remain financially strong and invest more in technology and the services that enable customers to bank when and where they want,” said Patrick McMahon, a PNC spokesperson, in an email statement.

Increasingly stringent regulations introduced in recent years have put a damper on bank’s checking account-related revenue streams.

In 2010, the Federal Reserve required that banks must obtain consent from customers before they can process transactions that result in overdrafts. Customers who don’t opt for overdraft coverage will never be charged overdraft fees. Previously, banks weren’t subject to this requirement.

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