Checking and ATM Fees
Banks flaunt free checking accounts with no monthly service fees, yet increase other charges.
Bounced check fees are averaging $27.04, and some banks steadily increase this fee for repeat offenders. ATM fees for non-customers have also been raised by banks to an average of $1.60 per withdrawal, while fees when their own customers use other bank ATMs have lowered.
The minimum balance requirement to avoid fees on interest bearing checking accounts at a record higher, and the the average yield on such accounts is a miniscule 0.32%, even as some money-market and savings accounts now yield more than 4.5%.
Interest rates have been rising steadily since June 2004, but improvement in the yields for interest checking accounts have been difficult to detect. The average yield on an interest checking account rose slightly from 0.31 percent to 0.32 percent. Yields have not increased much since the record low of 0.26 percent was established two years ago.
The average amount required to open an interest paying checking account and to earn interest lowered to $429.76, the lowest in three years.
The average minimum deposit required to open a noninterest bearing account is just $72.43, much the same as it was six months earlier.
The average balance required to avoid fees on an interest account reached a record high of $2,465, a 7.4% increase over the average six months ago.
The average monthly service fee on an interest checking account is $10.85, only a few pennies higher.
The average monthly service fee for noninterest accounts fell to a new low of $2.80, as banks compete with others that offer free checking.
The average bounced-check fee rose to $27.04 and is the second-highest on record, behind only the average of $27.13 one year ago.
The availability of online access continues to grow. Online access is available for 98% of accounts, versus 97% percent one year ago and 96% two years ago.
The average fee assessed by banks to nonaccount holders using their ATMs rose to $1.60, a 14% increase from the previous year.
The percentage of banks with ATMs that assess surcharges also climbed to a record high. 98% percent charge nonaccount holders with a fee.
The average fee your bank charges to use another bank's ATM lowered from $1.37 to $1.29, the first decline in two years.
Internet banks have long offered much higher yields on interest checking accounts than traditional brick-and-mortar banks. Internet banks offer much higher yields, and while avoiding fees means keeping a high balance, it is only half as bad as brick-and-mortar banks. The average balance requirement on interest checking accounts at Internet banks is $1,250, approximately half of the $2,465 required at traditional banks.
The average monthly service fee on interest checking accounts at Internet banks is again, about half of that at traditional banks. The average fee at Internet banks is $5.50, compared to $10.85 at traditional banks.
Online or offline, bounced check fees are costly, with no significant difference in the average bounced-check fee at Internet banks versus traditional banks.
Visit Credit Federal for a free checking account with ATM access.
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