New Bankrate.com survey says small banks
offer the biggest checking deals
• Bankrate.com

If you want the best deal on a checking account, head for a small regional bank or a community bank.

That's according to the latest semiannual Checking Account Pricing Study conducted for Bankrate.com , which uncovered the 20 least expensive bank checking accounts nationwide.

The survey of 348 institutions shows that -- once again -- the little guys offer the best checking deals in the country. None of the 50 largest U.S. banks made it onto the list. Trusts and credit card banks were excluded from the study. Only stand-alone accounts were surveyed, and the pricing surveyed was based on accounts that are available to any new customer.

The ranking is based on a $1,500 monthly balance held in a checking account for one year, with average account activity of 12 transactions per month and one bounced check per year. Simple interest is credited to the account if it is interest bearing.

Tampa bank is best -- again
Once again, the best account in the country is offered by Bay Financial Savings Bank in Tampa, Fla. The thrift's NOW interest-bearing checking account, yielding 2.78 percent as of the survey date, will net customers an annual income of $26.70, just the same as in the October 1998 survey. United Savings and Loan in Seattle placed second in the survey; Arundel Federal Savings Bank in Baltimore came in third.

The most expensive account, costing account holders $330.10 per year, is offered by Union Federal Savings in Indianapolis.

Other important findings revealed by the February study:

The average minimum to open a non-interest-bearing checking account dropped 1 percent from the last survey (October 1998), to $74.52. The average amount required to open an interest-bearing checking account rose 29 percent, to $385.98. The average threshold to avoid fees on non-interest checking accounts rose 11 percent, to $440.44; the average for interest-bearing accounts rose 6 percent, to $2,185.02.

Since the last survey, the average monthly service charge on non-interest checking accounts dropped 17 percent, to $5.95; the average for interest-bearing checking accounts remained unchanged at $9.59.

More banks are charging customers to use their bank-owned ATMs. A total of 91 percent of the banks surveyed said they don't charge ATM access fees to their own customers. That's down from 94 percent in the previous survey.

More banks charging for ATM cards
And more banks are charging customers for ATM cards. A total of 90 percent of banks offer free ATM cards, down from 96 percent in the last study. Of those that charge customers for the card, the most common fee is $10.

The 20 accounts that make up the worst checking deals in the nation cost the average accountholder anywhere from $251 to $330.10 per year.

-- Posted: April 9, 1999