Personal finance
GE Capital Purchasing MetLife Bank

Washington DC Might Divest from Bank of America, Wells Fargo

Miles By Discover Offers Relief to Noncommittal Travelers

Collection Agencies Resurrecting Old Debts Through Credit Card Offers

Treasury Doubles Purchase Limits on Electronic Savings Bonds

Cordray’s First Move as CFPB Head: Regulate Nonbanks

Weekly Wrap: Bank of America’s Worst Week Ever?

Dear U.S. Banks, Your Business Model Stinks

Shadow Banking Due for Some Time in the Spotlight

Weekly Wrap: Banking Slowly Dissolves?

Under the Roofs of Coffee Shops You’ll Find Your Online Bank

Brokerage Checking Still a Competitive Choice

Beware the Mirthful FOMC Meeting

Did ING Direct Customers Overreact to the Capital One Purchase?

No Balance Transfer Fee Offers Reappear But Hard to Exploit

Russell Simmons’ RushCard Lowers Fees, Is Still Bad

The Reason Why Freddie Mac Doesn’t Want to You to Refinance

New Bank Perks Cater to Tech-Savvy Customers

St. Louis Fed President: Raise Interest Rates

Whitney Warns: Banks to Banish Middle Class

Dime Savings Cites Regulations in Switch to State Charter

FDIC to Banks: Start Lending Again!

Weekly Wrap: Grey Days and a Sideshow

Weekly Wrap: Banking’s Spring Is Still Far, Far Away

American Express and Gen Y: BFF?

Bank of America Cuts its ATM Network Down to Size
Bank of America, which boasts one of the largest ATM networks in the nation, has reduced its fleet considerably this year. Bloomberg reports that the bank has scaled back its ATM network by 9 percent in 2012, by not renewing leases with gas stations and malls. It’s all part of Brian Moynihan’s Project New BAC — but what could it mean for consumers?

The bank has dropped 1,536 ATMs from its network in the first half of 2012, according to Bloomberg. It still has 16,220 ATMs, which is among the largest bank-specific networks, but it is diminished considerably.

Bank of America decided against renewing its leases with both Valero, the gas station chain, and Simon Property Group, “the biggest U.S. shopping mall owner.” While a bank branch ATM costs about $1,100 a month to operate, remote ATMs cost $600 more, according to the story:

“When they put an ATM in a mall or gas station, they have to rent that space in the same way that Sunglass Hut has to pay for their space,” said Bart Narter, a senior banking analyst at consulting firm Celent. “They did the math and probably concluded that these guys aren’t profitable.”

This downsizing of the ATM network is part of CEO Brian Moynihan’s plan to make Bank of America leaner and meaner than Ken Lewis left it. Bloomberg reports that Moynihan has also shuttered 108 branches just this year.

For consumers, this could mean more fees — especially if they’re accustomed to grabbing cash from the gas station or the mall. Most of Bank of America’s checking accounts charge $2 for each withdrawal from a non-Bank of America ATM, and that’s on top of whatever fees the ATM assesses — this can easily add up to $5 for a withdrawal.

Though it may be an unintended side effect of reducing branch and ATM networks, Bank of America will likely harvest more fees from its users due to increased difficulty of locating its ATMs. Well, maybe its customers were spoiled with a ubiquitous and expensive-to-operate ATM network, maybe not. But either way, the end result is good for Bank of America and not-so-good for some of its customers.

Äë˙ ďĺ÷ŕňč

Weekly Wrap: Astrology is Bunk

Refinancing Your Mortgage Lines the Pockets of the Biggest Banks

Experian Unveils New Credit Score for the Underbanked

New Upromise Credit Card Gives 10% Cash Back at Major Online Retailers

The Best Experiences Your Credit Card Can Buy This Summer

Citi Offers New Way to Spend Rewards

Fed Study: CD Rates Are Less Attractive

Wells Fargo Raised Checking-Account Fee, Slashed Bill-Pay Fee

Weekly Wrap: Get Bullied, Get Rich

Taibbi: No Difference Between Banks and the Mafia

Why You Should Probably Raise Your Credit Limit, Especially When You Don’t Want the Money

Accounts Push Relationship Banking

Weekly Wrap: LIBOR Aside, You’re Still in Control

Fed Report Shows Mobile Banking Empowers the Underbanked

Top Gas Credit Cards to ‘Refill’ Your Wallet

Prepaid Cards for Payroll Purposes: Fair to Workers?

Weekly Wrap: Mobile Banking’s Onward March

Banks Close Revenue Gap from Overdraft Fee Losses

Banks Lack Social Media Efforts… Oh Really?

SpringCoin: Out to Automate Credit Counseling

Could Student Loan Forgiveness Help the Economy?

Chase United MileagePlus Club Card Takes Flight

Caviar and Champagne With Your Checking Account?

Weekly Wrap: Cash Rules Everything Around You? Not For Long

SmarterBank’s Checking Account Helps Pay Off Student Loans

Chinese Furious Over Banking Fees

Banks Should Use Prepaid Cards to Hook ‘Em While They’re Young

Prepaid Travel Debit Card Provider Eyes U.S.

Sallie Mae Credit Card Helps Pay Back Student Loans

Post-CARD Act, Banks Shift to Prepaid on Campus

Weekly Wrap: Things Are Not as They Seem

Gen Y Eyes Retirement with Rose Tinted Glasses

Low Interest Rates: A Ticking Time Bomb?

Are Discover Partner Gift Cards Worth the Rewards Points?

Kony Solutions’ Branding Problem: Bank Software Firm Has Killer’s Name

Weekly Wrap: Fancy Gadgetry, No Money

Weekly Wrap: Millenials’ Big Day at the Races

UFB Direct Adds Money Market Account With 1.15% APY