Bank of America is to debut a new online-only account that offers free banking to customers who dispense with paper statements and branch-based transactions.
Set to be introduced next month, the new account will charge a $8.95 monthly fee to customers who want access to paper statements and tellers. It will replace the bank's current CollegeEdge account which does not carry a fee.
The launch of the account follows the introduction of new rules capping overdraft fees, prompting speculation that the days of free bank accounts may be coming to an end. Rival Wells Fargo eliminated free accounts for new customers on 1 July, charging a $5 monthly fee to account holders instead.
Bank of America has been trialling the new online-only service in Georgia since November. It will be introduced nationwide from next month.
In July last year, BofA outlined plans to close around 10% of its 6100 branches in response to shrinking customer demand as people turn to online and mobile banking.