Be ready for Royal Bank raising bank fee

If you are using Royal Bank, prepare the bank fee will be raised by June 1, 2012. I wasn't happy with the raise, especially I cannot get the free temporary cheque from Royal bank anymore. It's bad.

I found the article below, and it's kind of make sense why Banks want to raise the bank fee. 

As debt-heavy Canadians become more cautious about borrowing, the banks are looking to higher fees to make up the shortfall.

Canada’s largest bank is the latest to announce it is raising a number of fees, including the rate it charges for credit card cash advances.

The new fees, which affect everything from personal banking to business accounts, become effective June 1, RBC said in a brochure mailed to clients.

The move reflects the increased costs of doing business, the bank said.

“We operate in a competitive environment and work hard at keeping costs down; however, we must price our products and services to reflect the increased cost of doing business,” an RBC spokesperson said in an email.

The main impact of the RBC announcement will be on customers who pay monthly services fees on their everyday bank account, known as RBC’s Signature No Limit Banking account. Those fees will rise to $14.95 a month from $13.95.

Interest rates on credit card cash advances will rise to 21.99 per cent from 19.99 per cent.

Seniors will pay a higher annual fee to carry certain kinds of RBC Visa rewards cards. For example, the annual fee for the RBC Rewards Visa Preferred card will rise to $110 from $70.

At least two other banks, BMO and TD, have also raised their fees in recent months, according to David McVay, head of McVay & Associates and a former bank executive turned consultant.

As the economy slows and banks write fewer loans and mortgages, they’re looking for other ways to boost their revenue, McVay said in an interview.

“Raising fees is one way of doing that,” McVay said.

McVay called the monthly fee increase “modest.” Among Canada’s six largest banks, the monthly fee for maintaining a daily banking account ranges from $12.95 to $21.95, he said.

In some cases the new fees come with added value, he noted. Seniors who hold RBC Visa rewards cards will get free 7-day out of province/out of country emergency medical coverage.

RBC said its clients can reduce their banking fees by using online banking and bank machines and also by picking the service package that best suits their needs.

Written by Dana Flavelle

Source: Moneyville