The bank advised me of an increase to my annual safe deposit fee. They indicated that I could avoid the increase by opening an account with them. Is this a legal practice?

Yes. A bank may provide a discount on the safe deposit fee to an account holder. Federal law provides that banks may charge for the services that they offer. Bank management determines the amount of the safe deposit box fee.

If you have concerns about the fee, you may wish to determine what other banks in your area charge for the same service. Banks are aware that customers have choices. The cost of the service or product is often a key factor in deciding where to purchase financial services.