Checking No-Fee Account Hits an All Time New Low This Year

No-fee checking account percentage came down sharply from 37% towards the end of 2012. Lowest availability was back in 2011, when it plunged to 35%. However, the latest figures have set a new low for all times.

Interestingly, even in such situations online banking transactions are far from ebbing. They are offering no fee accounts at rates high compared to traditional banks. Approximately 79% of all the online accounts, which were part of the survey, were unaccompanied with monthly fees for maintenance. This was the complete opposite of brick and mortar establishments where 28% such accounts were available.

Availability of no fee checking accounts in online banks is available with higher frequencies, simply because there are no establishment costs involved. Even the other overhead costs are lower than the traditional banking system. When consumers go for transactions online, these banks are able to save money related to statement sending as well as branch staffing. This profit is clear in the high availability of free online accounts for checking related to virtual banks. For people this is an incentive to make online banking popular in the coming times because after all, this is for their own benefits.

Online banking signifies cost-effective transactions and more and more consumers are realizing this. Overdraft fee has also risen alarmingly in 2013. This has climbed to approximately $32 recently. During 2012 and it was near to $30. Consumers who find it hard to avoid overdrafts can closely examine such fees before they think about opening new accounts. People with frequent overdraft situations are better off with lower fees for overdraft even if the bank charges higher rates of monthly fee related to their accounts.
Smart people naturally try their best to avoid overdrafts from the very beginning. After all, this is an unnecessary and large expense. Those seeking lower fees in overdrafts can start their searches online. Online banks just charge a miniscule 26% on overdraft fee, which is quite low when one compares it to average $ 32, which traditional banks charge. This comparison shows astounding results in favor of online banking system.