Our institution currently offers a "Free" checking account that has no transaction fees, no service charges, etc. At this point it is virtually free. However, our President wants to start charging the account off if the balance is below $25.00 and has had no activity for 90 days and take the balance into our fee income. Can we do this and still call the account "Free"? Thanks for any input.

An inactivity fee would not be considered a fee that would prevent you from advertising a free account. It would however require a TISA change in terms. You also should research your State's unclaimed property laws to make sure your State allows such a charge on an account headed for dormancy.

Thank you for your input, I will check with our Attorney on our state law.