While an increasing number of large banks are charging customers to use their debit card, many smaller banks have found this rush of new fees to be an opportunity to gain market share. Small banks have now started to think outside the box and offer rewards to customers for checking accounts and debit card use. More and more customers, initially drawn to these smaller banks by fee-free accounts, are flocking to these banks and are even making money in the process.
A handful of large banks, such as Wells Fargo and Bank of America, have implemented fees for debit card transactions, aiding in this banking shift. Although it is not against the law to charge these banking fees, customers fear these fees will become the precedent in banking without proper action by customers. For this reason, smaller banks are bending over backwards to attract new customers with cash-back promotions and giveaways. Some banks offer cash for making a minimum number of debit card purchases each month, while others offer rewards for opening a new checking or savings account.
In addition to many of these promotions, several banks (both large and small) are continuing to offer bonuses to customers who sign up for new credit cards. It appears that the banking industry is once again trying to find a balance of power between David and Goliath, except this time David brought his wallet.
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