PNC Bank slashes fees on some accounts

In a play for more consumer business, PNC Bank is eliminating monthly service fees ranging from $3 to $10 from its lower-end checking accounts on July 25, the Pittsburgh bank announced.

PNC also will drop the $2 fee charged when those account holders visit tellers or call in for live assistance, beginning the same date.

In the process, PNC will change the so-called Budget, Budget Qualified, Basic and Express checking accounts to Free checking accounts.

"Anybody can bank at PNC without spending a dime," said John Rees, senior vice president of regional community banking.

In addition, the bank is dropping the $500 minimum balance requirement for Student Plan accounts.

But at the same time, PNC is raising its foreign ATM fee from $1.50 to $2 on July 25. That means its customers will pay 50 cents more to visit an automated teller machine not owned by PNC. Those customers will continue to pay no fee to access their accounts through a PNC-owned ATM.

The streamlining is expected to save PNC customers in five states about $4 million a year, based on historical usage and fee assessments, the bank said.

The more generous fee schedule roughly coincides with when newcomer/competitor Citizens Bank expects to finish converting customer accounts from about 120 area branches it bought from Mellon Bank in December.

Converting customers to new accounts and systems after banks change hands has resulted in glitches at other institutions that send angry account holders to competitors. The botched conversion of CoreStates bank accounts to First Union in 1998, for instance, caused hundreds of Philadelphia-area customers to flee to PNC and other competitors.

But Citizens has said it has converted the accounts and systems of 18 previous institutions it's acquired since 1988 without problems, and it expects the same success in Pittsburgh.

PNC officials said the bank has been working to simplify its accounts and save customers time and money for about two years.

"Customers do want products designed to meet their needs, but they also want lower-cost options," said Rees.