Finance Globe

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Over Half of Consumers Pay No Monthly Fees for Banking Services

While the average consumer may gripe about the interest charges on a typical credit card balance, it appears we're getting a pretty good deal on other banking services. According to a recent survey by the American Bankers Association, the majority of bank customers continue to pay nothing in bank fees.

The ABA reports that 70% of consumers pay $3 or less each month for services such as checking account maintenance and ATM access, but that 56% of consumers pay nothing at all each month, up from 52% from a 2008 survey. The ABA survey shows 9% of consumers pay between $4 to $9, and 13% of consumers paid more than $10 per month.

“Bank customers today are getting one of the best deals around – checking and savings accounts for minimal or zero cost. And these survey results show consumers are getting better than ever at managing their accounts to keep service fees low,” said Nessa Feddis, ABA vice president and retail banking expert.

The ABA has conducted the annual phone survey since 1998 to take a snapshot of consumer trends. The survey of 1,000 randomly-selected consumers was conducted in August by an independent market research firm on behalf of the ABA. Consumers who participated in the survey were asked to estimate the cost of their banking fees.

“The cost of almost everything else has risen since 1998. But the very affordable cost of keeping your money in a checking or savings account hasn’t changed in over a decade,” Feddis said.

While some consumer groups focus on avoidable fees at the highest end of the spectrum, the survey clearly shows that the vast majority of bank customers manages their accounts well and keeps service charges low. The ABA offers a few tips for consumers to help reduce banking costs:
  • Use Free Checking and Savings accounts - most banks offer them.
  • Use your Own Bank's ATMs to avoid extra fees.
  • Sign up for Direct Deposit - you may qualify for free checking with your bank if your paycheck is automatically deposited each month.
  • Keep at least the Minimum Balance in your account to avoid low balance fees.
  • Don't Overdraw - keep your checkbook balanced and avoid costly overdrafts.
  • Request to receive Automatic Email or Text Alerts when your balance falls below a certain level.
Source:American Bankers Association
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Tuesday, 23 April 2024

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