Banks Change Savings Accounts, Customers Now Face New Fees

If your savings account suddenly started behaving like a checking account, you’re not imagining things. Belize Bank and Atlantic Bank have quietly changed the rules on basic savings accounts, and customers are feeling it. Over the past month, the banks reclassified savings accounts as “Full Access” and “Essential,” turning them into something that looks a lot like checking. ATM withdrawals are easier and limits are looser, but the trade off is steep. Account holders no longer earn interest, and new maintenance and transaction fees now apply. For Belizeans living pay cheque to pay cheque, those charges add up fast. The banks say the shift reflects how people actually use their accounts. Customers, however, are asking whether “full access” simply means higher fees. When the issue was raised with Central Bank Governor Kareem Michael, he made it clear the regulator had no hand in the decision. The changes, he said, came solely from the commercial banks.

 

Kareem Michael, Governor, Central Bank of Belize

“ First thing I have to correct is that the Central Bank was not involved in that decision. There was no approval sought for Atlantic Bank or any other bank to have done that. What I will say is that their current powers under the Central Bank that only go as far as putting caps and floors on lending rates and also floors on savings deposits. Savings deposits have been specifically defined. That the latest round of revision was when we engaged the commercial banks roughly a year and a half or two years ago, when we wanted or intended to address fee-based income at the commercial banks. And it took a while for us to get her get at a middle position, a compromised position, in which both parties were reasonably satisfied with. But as you rightly pointed out, there have been more concerns by the public that there are more fees being applied, particularly when prices are going up. You’re not making income on your savings, but the cost of living is certainly going up. I will also tell you that, and correct me if I’m wrong the other banks in the room, this is not a unique move by that bank that you mentioned.”

 

Reporter

“Both Atlantic and Belize Bank [made the move].”

 

Kareem Michael

“Oh, wonderful. Good. So that should tell you something about the structure of our market. Those two are the biggest banks.”

 

For now, customers are left adjusting to a new banking reality, less earning on their money and more fees to watch.

 

Attention readers: This online newscast is a direct transcript of our evening television broadcast. When speakers use Kriol, we have carefully rendered their words using a standard spelling system.

 

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