Bank of America (NYSE:BAC) recently announced a new checking account product that charges a flat $4.95 fee per month. The account will be "check-less" and won't allow customers to overdraft their accounts and subsequently incur a fee. While the product may give Bank of America's top-line a slight boost, the real reason behind the new account could be to simply reduce the drag of unprofitable customers and deter customers with low account balances from joining the bank.
In this segment of The Motley Fool's financials-focused show, Where the Money Is, banking analysts Matt Koppenheffer and David Hanson discuss what this means for the bank and its investors. The two tell viewers why this isn't garnering the same amount of backlash as the bank's proposed $5 fee for debit card use – a plan that was ultimately scraped.
David Hanson has no position in any stocks mentioned. Matt Koppenheffer owns shares of Bank of America. The Motley Fool recommends Bank of America. The Motley Fool owns shares of Bank of America. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.