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Highlights (and lowlights)
of Bankrate.com's latest
semiannual Checking Account Pricing Study
By Michael
D. Larson • Bankrate.com See
the most recent version of the checking study.
 Bankrate.com's
latest Checking Account Pricing Study shows several changes since
the October 1999 survey, including the emergence of Internet-only
banks, the continued presence of big name banks in the 20 Worst
Buys category and one big surprise -- a falling fee.
A snapshot of the study's key findings includes:
- Telebank is still on top.
Just as in Bankrate.com's October 1999 survey, Telebank
of Washington, D.C., has the best bank account in America's top
35 markets. The account has a yield of 3.15 percent (2.1 percent
higher than the average), can be opened for just $1,000 and has
no monthly service fee if that balance is maintained. Over a year,
the account nets a customer $32.25.
- First Citizens Bank in Atlanta has the survey's
worst checking account: Elite Gold Checking. This account requires
a balance of $25,000 to avoid the $30 monthly service fee and
charges $28 for a bounced check. It will cost customers $355.75
a year.
- Among Internet-only banks the top checking
account spot went to Security
First Network Bank's interest checking account. It earns a
6 percent yield, has no monthly fee and can be opened for just
$100 (the bank's site says that rate is good on deposits up to
$10,000 until April 15).
- Internet institutions took the top seven
slots on the combined 20 Best Buy rankings in the survey, a surprising
new dominance that puts online-only banks in the forefront of
customer choices. All 20 Worst Buys belong to brick-and-mortar
institutions, and some of the biggest names in banking feature
prominently.
- More banks than ever -- 83 percent -- are
surcharging non-customers ATM fees.
- Consumers will fork over $2 billion in ATM
surcharges this year.
- More financial institutions than ever are
letting customers use their ATM cards for free when they get cash
back at the grocery store -- 82 percent.
- For interest-bearing checking accounts: The
average monthly service fee rose 3 percent to $10.23. The average
balance to avoid a service fee rose 5 percent to $2,394.32.
- For non-interest bearing checking accounts:
Wow! A falling fee -- the average monthly service fee fell 2 percent
to $5.99. The average minimum required to avoid service fees was
down 5 percent to $466.17.
- The average bounced check fee rose a modest
1 percent to $23.40, but that little jump continues a trend of
rising charges dating back to Bankrate.com's October 1998 survey.
-- Posted: March 28, 2000
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