B of A cuts online stock-trade fees for checking-account customers

Bank of America slashed its online stock-trading fees Thursday for checking-account customers.

Trades made without broker assistance will now cost $5, $7 or $10 each, depending on the type of checking account a customer holds, down from $19.95. The decrease puts the bank's trading fees in line with those at discount brokerages such as E*Trade and Scottrade.

The move is indicative of the bank's strategy to "deepen relationships" with existing customers, or get them to increase the number of products and services they buy.

Customers who have multiple accounts with one bank are generally less likely to go through the hassle of switching banks.

And like many other large financial companies, Bank of America has decided that cross-selling is often easier and cheaper than luring new customers through the door.

Jim Goodwin, a strategist for the company's brokerage business. said Thursday that the new pricing plan was "nine or 10 months" in the making, and was developed in response to customer requests for lower fees and greater integration of online brokerage and banking services.

Bank of America, based in Charlotte, N.C., gained more than 430 branches and a leading market share of deposits in New Jersey last year when it acquired FleetBoston Financial. With the deal, Fleet's Quick & Reilly retail brokerage unit was folded into Bank of America's brokerage subsidiary, which now has about 1.3 million clients.

Since this summer, when the former Fleet Bank online banking site was integrated into the Bank of America site, New Jersey customers have been able to access their bank accounts and brokerage accounts at bankofamerica.com with a single log-in.

Under the new fees, "economy" checking customers pay $10 a trade. "Preferred" checking customers, who maintain higher balances, pay $7. The richest customers who use private banking services get the sweetest deal, $5 per trade.

The company also cut fees for brokerage customers who do not have checking accounts with

What are people saying about mortgages today:

Rates on 30-year mortgages edged down last week to a seven-month low. Mortgage-giant Freddie Mac reported Thursday that 30-year, fixed-rate mortgages fell to 6.3 percent, down slightly from 6.31 percent two weeks ago. It put rates at the lowest level since they were at 6.24 percent the first week of March.

Bank of Hawaii, Central Pacific Bank, Territorial Savings Bank and Wells Fargo Home Mortgages all cut their 30-year mortgage rates to 5.75 percent this week.

Most people think of a mortgage as a means to an end. After all, you buy a house, not a home loan. But a mortgage is much more than the path to homeownership. It is a financial instrument that must be managed, just like any other financial investment.