Banks plan interest hikes to 24% for personal credit

Crocker National Bank of San Francisco, 12th largest US bank, said effective June 1 its interest rates for home equity, home improvement, car, and personal loans will rise to as much as 24 percent annually and its finance charge on credit cards will increase to as much as 21 percent. It will also charge consumers a 12-cent transaction fee every time they use their bank credit card for a purchase or cash advance.

Citibank, the second largest bank, said it will raise by 1 percent, effective May 1, the fees it charges merchants for extending credit and processing their MasterCard and VISA receipts.