Service Fees Increase for Bank Checking Accounts
Here's something that shouldn't be too surprising. Bankrate's 2008 Checking Study, which was released this morning, showed that checking account fees have risen to record highs this year.
On average, Bankrate found that:
* ATM surcharges moved to $1.97 while the cost of using an outside ATM reached $1.46, bringing the total average cost of using an out-of-network ATM at $3.43.
* Bounced check fees rose 2.5 percent this year, up to $28.95.
* For interest bearing accounts, monthly service fees hit a new high at an average of $11.97. Minimum balances also set a record with an average balance of $3,461.84 needed to keep an account open.
* For non-interest bearing accounts, monthly service fees hit a new low at an average of $1.96. Minimum balances also hit a new low with an average balance of $109.46 required.
Bankrate's senior financial analyst Greg McBride says consumers need to be more vigilant than ever to avoid bank fees. You should balance your checkbooks regularly and check your account balances online routinely. You can also sign up for overdraft protection with a funded savings account to make sure you don't bounce a check.
McBride says think twice about taking money out of an ATM. Taking $30 or $40 from an out-of-network ATM is the same as paying 9 percent interest on your money, he says. You should also investigate online banks. Many reputable online banks have generous ATM fee reimbursement programs for frequent users.
(Sun Photographer Kim Hairston)
Comments
Tis the reason why I never use an ATM! Besides-
I don't even know how!
Posted by: jay | October 27, 2008 4:19 PM
So while we were all cheering the FDIC and its increased protection levels for depositor's, you now know who will be paying for those increases. You, me, and all banking customers.
DD: Andy, I don't think we're disagreeing with each other. This is exactly how banks are going to make money in the future. It'll be on the backs of consumers through fees.
Posted by: Andy | November 25, 2008 12:39 PM