1st Chicago NBD Plans Teller Fees in Two States

First Chicago NBD Corp. said it expects to offer by early next year a low-cost checking account in Michigan and Indiana that carries a fee for using tellers.

The controversial teller fee, introduced last year with much negative publicity, had originally been applied to several types of First Chicago accounts. It was rolled back last month on all but one type.

Michael Moran, an analyst with Roney & Co. in Detroit, said that extending the fee into the southeast Michigan market carries some risk. The area is very competitive, and rivals are likely to take advantage of customers upset by the charge, he said.

Low-cost checking account is very attractive financially, Mr. Moran said, noting that it is $115 billion-asset bank's most popular checking account in Illinois. "But emotionally it comes across as: Why am I paying to visit with another person?"

First Chicago NBD said it is aware of how sensitive customers are to charges. Moreover, it said it may vary the fee according to the market.

"We intend to manage this very, very closely," said Jill Cummings, a spokeswoman for NBD Indiana. "Anybody can look at what happened in Chicago and say: We don't want to relive that nightmare."

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