Banks Increase Their Fees in 2000

U.S. banks again boosted many of their fees in 2000, with customers of big institutions continuing to pay more, the Federal Reserve said Wednesday.

In an annual report to Congress, the Fed said the fees charged for seven of the 15 bank accounts and services it examined rose significantly last year, while only one fell.

The random survey of 500 banks and thrifts also found that, as in previous years, larger, national banks generally charged customers more than smaller, local institutions did.

The report noted fee increases in 2000 were most noticeable for so-called special functions such as stop-payment orders and overdrafts.

The annual bank fee study was initiated by Congress in 1989, but is slated to be discontinued. The Fed has said it does not consider the data it yields to be vital.