Bankrate 2012 Checking Survey Reports Soaring Bank Fees and Reducing Free-Checking Rates

The important findings of this new study by Bankrate.com reveal that:

• Average monthly maintenance fees for non-interest checking accounts is reported to be at a record high of $5.48, which is almost a 25% jump over the figures from last year
• The charges for getting cash from an out of network ATM has also increased drastically. According to the study, people can expect to pay almost an average fee of $2.50 to the ATM owner, which stands at a record high of 4% from the figures of last year. Additionally, the bank will charge another $1.57 on an average, which is a whopping increase of 11%
• Overdraft charges have also increased dramatically. According to the study, average fees for insufficient funds has increased to $31.26 from $30.83 last year

As the fees are increasing at a rapid pace, the concept of free checking accounts, with no monthly fee or no minimum balance, is on its way to extinction. In this regard, Greg McBride, senior financial analyst at Bankrate said that this trend is going to linger for years to come, with no tendency of reversing very soon. The survey also reports that only 39% of the total major banks in the United States provide non-interest checking accounts with no fee. And this is a huge dip from a peak of almost 76% in 2009 and 45% in 2011.

Bankrate study also stated the reasons behind such hike in bank fees and reducing numbers of free checking accounts today. More and more bankers are functioning as per the new regulations of the federal government, which has reduced the revenues considerably from both debit card swipe fees and overdraft fees. Moreover, regulatory changes have also contributed towards casualty in free checking accounts, stated McBride. He also said that people need to have some sort of business or relationship with the bank to have a free checking account today.

The study also presents how to avoid the fees and get an account for free by signing up for direct deposits. People can also avoid the “most interest bearing checking accounts,” only use ATMs when needed, avoid overdraft fees, and identify the cause of such fees and then react accordingly to avoid it.