Bank One eliminates teller fees

CHICAGO -- Bank One Corp. on Wednesday said its customers will no longer have to pay $3 to deal with tellers, eliminating a controversial policy that drew national attention in the mid 1990s.

The removal of the fee, which is effective immediately, is part of Chicago-based Bank One's effort to improve customer service and win back disgruntled local customers.

Competitors lampooned the teller fee after First Chicago Corp., Bank One's predecessor, started charging the fee in 1995.

Instead of charging customers, some other banks gave $3 to customers after their transactions while others offered money to those who switched accounts.

Although some banks jumped on the teller fee bandwagon, the practice "never really caught on," said industry consultant Bert Ely.

LaSalle Bank, which charges customers $1.50 teller fee on certain accounts, said it may review its policy. A spokesman for Harris Bank, which charges $2 per assisted transaction on some accounts, would only say that the company would continue to review its business needs.

Bank One also announced plans to spend more than $75 million over the next two years to open more than 30 new branches, add 70 automatic teller machines, launch a new free checking account service and implement longer hours at some local branches.

Spokeswoman Calmetta Coleman said the changes are the result of technology improvements that include linking all Bank One branches in 14 states to the same computer system.

Bank One currently operates 1,000 ATMs and 200 branches, Scharf said. It is the nation's sixth-largest bank holding company, with assets of more than $270 billion.