Tag: Fee Setting

8 Items To Consider When You Revise Your Bank’s Fees

Setting Bank Fees - Woman staring out from an ATM

When was the last time you changed your fees? Most banks, when setting fees on bank products and services start and end by taking a look at what selected competitors are doing. This method, while not a bad start, will almost always result in a suboptimal setting of fees. The reason for this is not only is your bank very difficult to compare to your competition, but your competition is likely doing the same thing. In this article, we look at practical considerations for banks looking to set or revise their current fee structure.

 

This Is Why Your Bank Should Review Your Deposit Fees

Managing Bank Fees

If the Federal Reserve does make a change in their target Fed Funds and Reserve rate on Thursday it will have many banks scrambling to take another look at their rates on deposits and their own asset-liability positions as it pertains to how fast their loans will reset (given floors, fixed rates, etc.). Unfortunately, few banks will stop to look at their fee structure on their deposit accounts. Considering that deposit fees can compose 70% of a bank’s fee income, this could be a mistake, especially because fee income streams are also interest rate sensitive.

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