Could New Regulations Make Your Bank Account More Expensive? JPMorgan's Jamie Dimon Thinks So

What happened

Top banking executives, including JPMorgan CEO Jamie Dimon, addressed the Senate Banking Committee on Wednesday as part of its annual hearing into Wall Street oversight. Their testimonies covered a number of themes, including the impact of various regulatory proposals on banks and their customers. Dimon told the committee that the proposals will "harm everyday Americans."

So what

In prepared comments, Dimon urged lawmakers to consider the combined impact of the proposals. He singled out changes to the way banks manage capital, limits on merchants' credit or debit card transaction fees, and a cap on credit card late fees. In his view, these proposals would have unintended consequences for consumers and could do "serious harm to the American economy."

For example, Dimon says proposals to limit what banks charge merchants for processing card transactions could have a "devastating" knock on effect for lower-income customers. Why? He says banks may then increase their other fees or limit their free banking services.

Now what

Committee Chairman Sherrod Brown did not share Dimon's views. He told the banking leaders, "What your banks want is to maximize quarterly profits -- the cost to everything and everyone else be damned."

While bankers and politicians debate changes to the system, as a consumer there are already several ways you can protect yourself against banking fees.

• Look for fee-free checking accounts: Given that one recent MoneyRates survey put the average monthly checking account fee at $13.95 per month, it's worth checking out our list of free checking accounts. Some accounts charge zero maintenance fees while others waive the fee if you meet certain requirements. These might include making a certain number of deposits or keeping your balance above a set amount.
• Understand your bank's ATM fee system: Many banks charge around $2.50 each time you use a non-network ATM. If you often find you're paying ATM fees, consider an online bank that might reimburse those costs.
• Learn more about overdraft and overdraft protection fees: Overdraft fees and policies vary considerably from bank to bank. Find out what your bank will charge if you make a payment that would send you into the red. Ask whether there is a buffer period or other policies to minimize the damage of these fees. For example, some banks may give you 24 hours to deposit money before hitting you with charges.

It's good to be aware of both the intended and unintended consequences of potential regulatory changes. In the meantime, bank account fees can already cost hundreds of dollars a year if you're not looking for ways to avoid them.