Study: Bank Fees Climb to New Heights in Second Half of 2014
February 23 2015 - 6:07AM
The latest MoneyRates.com Bank Fees Survey reveals that several
types of checking-account and ATM fees hit their highest recorded
averages in the second half of 2014. This marked the continuation
of a trend that has seen consumers' banking costs drift steadily
upward since the Great Recession.
The semiannual study found that the average monthly maintenance
charge on a checking account hit a record high in the last six
months of 2014, rising 18 cents over the midyear 2014 survey to
reach $12.87. The same was true of the average minimum balance to
avoid a monthly fee, as it climbed $268.76 to reach a new high of
$5,708.76.
Perhaps more troubling, the percentage of checking accounts that
don't charge a monthly maintenance fee – also known as "free"
checking accounts – fell to just 26 percent. That's the lowest
level recorded since MoneyRates.com began measuring these figures
in 2009.
"Free checking used to be commonplace," says Richard Barrington,
CFA, senior financial analyst for MoneyRates.com. "Now, free
checking isn't quite extinct, but let's just say it's on the
endangered species list."
The study also shows across-the-board increases in ATM fees in
the second half of 2014. The average bank-to-customer charge to use
an out-of-network ATM climbed 9 cents to $1.61. The average
bank-to-noncustomer charge to use an ATM increased by 14 cents to
$2.65.
There was only one bright spot for consumers in the overall
results of the survey, and it wasn't particularly bright. The
average overdraft fee in the survey fell by 1 cent to $32.47.
However, consumers might still find encouragement in the lower
fees offered by the survey's online-serviced accounts. Online
accounts beat traditional branch-serviced accounts in every fee
category measured by the survey. For example, the percentage of
online accounts that charge no monthly maintenance fee was 63
percent. Only 24 percent of branch-based accounts came with no fees
of this sort.
Fee-weary customers may also wish to avoid the nation's largest
banks as well. The study shows that large banks offer free checking
much less often than their smaller counterparts. At the larger
banks in the study – defined here as those with more than $10
billion in deposits – the average minimum balance required to earn
a fee waiver was $9,780.95. That figure was more than 70 percent
higher than the overall survey average.
Barrington says this is a good reason to consider looking beyond
the most prominent banks in your neighborhood.
"By definition, these larger banks are the ones that have
attracted the most deposits, but they are the most expensive
options for consumers," says Barrington. "A little more time spent
shopping for lower fees could pay off for years to come."
For more details on the survey, please see
http://www.money-rates.com/research-center/bank-fees/.
Methodology
The Bank Fees Survey is updated twice a year using data on
checking accounts offered by banks in the MoneyRates Index. The
MoneyRates Index is a composite of more than 100 banks, including
the 50 largest U.S. banks by deposit amount and a similar number of
smaller banks. This sampling was constructed to be broadly
representative of the general banking environment.
About MoneyRates.com
MoneyRates.com has been a leading source of information on bank
rates, personal finance, savings accounts and investing since 1999.
The site provides the highest rates on certificates of deposit,
money market accounts and high-yield savings accounts.
MoneyRates.com is owned and operated by QuinStreet, Inc. (NASDAQ:
QNST), one of the largest Internet marketing and media companies in
the world. QuinStreet is committed to providing consumers and
businesses with the information they need to research, find and
select the products, services and brands that best meet their
needs. The company is a leader in ethical marketing practices. For
more information, please visit QuinStreet.com.
CONTACT: Alex H. Bryant
MoneyRates.com
abryant@quinstreet.com
650-703-5214
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