Citigroup (C) Adding Fees to Checking, Deposit Accounts

As usual with government regulatory interference, businesses adapt by increasing costs in other areas, as is the case with Citigroup (NYSE:C), which is now charging fees for customers with small deposit or chekcing accounts.

Citigroup announced Friday it will charge a $10 monthly fee on basic checking accounts. If the balance in savings and checking exceeds $1,500, that fee will be waved. It will also be waved if the customer completes one online bill payment and one direct deposit a month.

Other banks have introduced monthly fees for things like debit card use, branch visits and accounts. At this time Citigroup doesn't charge for online bill payments or debit cards.

Banks are doing this in response to the government limiting overdraft and other fees.

The problem of course is now many people will have to pay for the irresponsible people who whined about having to pay overdraft fees when the failed to put money in their accounts, among other things.

The government protecting the irresponsible and forcing banks to look elsewhere for income, affecting a wide range of people, is the typical and predictable fallout from the government operating beyond its protective purpose.