While 2019 was marked by a freeze on bank charges, 2020 is shaping up to be different, with bank charges expected to rise. However, this increase only concerns certain banking services.
Rising costs
The State had asked banks to freeze bank charges last year, in particular to meet the demands of the French and the Gilets jaunes movement so as to increase their purchasing power. This year, banking establishments are raising their fees.
Faced with a decline in the number of traditional branches and fierce competition from online banks and neobanks, traditional banks are trying to keep their business model alive. But will an increase in bank charges go in their direction? This is a legitimate question. However, this increase will only apply to services that require the intervention of a bank advisor, such as sending a checkbook or making an in-branch transfer.
Services affected by the rate increase
As of January 1, 2020, if you forget to notify your banker of your change of address, or if the name on your mailbox is illegible, the mail sent and returned to them will be charged on average 5% more than in 2019. This is the cost of returning NPAI ("no longer living at this address") letters.
Sending a checkbook will also cost more. Checkbooks are free, but postage costs are set to soar, to €1.10 for a simple envelope (+4.8%) and €7.20 for a registered envelope (+2.7%). Each bank applies its own rates, so it's worth making comparisons online. All banks are required to clearly display their rates.
If you ask a customer advisor to carry out an operation that you can do yourself via your online customer area, the bank may charge you a fee.
The dematerialized transfer remains free of charge, but in-branch transfers will increase by up to 4% in some banks.
The operation of ordering a new bank card before its expiry date will be charged up to €12 on your account, which corresponds to an increase of 3.9% compared with 2019. This increase does not only concern people who have lost their card, but also those who have had it stolen or those who are requesting a reissue because their card is broken or mute.
If you decide to leave your bank branch and move to another bank, there will be an additional charge for transferring savings products. The transfer will cost €99, compared with €95 in 2019 for a PEL (Plan d'épargne logement), an increase of 3.1%.
An increase according to profile?
The calculation of bank charges also depends on your profile and personal situation. For example, if you're a young person under 25 with a card limited to withdrawals, and you withdraw money once a month from an ATM other than your bank's, you'll pay €1 in bank charges if you're an online bank customer, whereas the bill can rise to €185/year if you're in a traditional bank network.