Bank rates for consumers at all time high

Banks across the country continue to press the metal to bring in more fee income. The pressure is on - 'big time'.

Without making a political statement here, banks must find more ways of generating fee income. From the expense side, banks are 'staring down the barrel' of Congress and the Fed who may impose 3X the FDIC premiums previously charged. At the same time banks are 'taking heat' from those who believe that overdraft and other bank charges are onerous. With the federal government's involvement, banks must consider changing their pricing (overdraft fee) policies just as Bank of America recently announced.

While all of these issues are being debated, today the South Florida Business Journal online, referenced a Banrate article which illustrates the continual year to year increases in bank fees. Consumers on average are paying higher monthly service fees, overdraft fees, NSF, ATM transaction fees and various interest and non interest checking account fees.

It's no wonder consumers are looking for alternatives. Prepaid cards and payroll cards like Directo's DirectoPlus and DirectoCash cards are on the rise. "We are seeing a greater acceptance", CEO Bob Howe reports.

The next question on the horizon, how will the impending credit card crisis impact consumers? What will be the impacts and outcomes as interest rates rise for the common consumer? Will debit transactions continue to outstrip credit transactions? It sure looks that way.

Time will tell.