In a continuing trend toward fee-free banking, just over half of consumers now pay nothing for services such as checking accounts and ATM access, according to a new survey by the American Bankers, an increase of almost 10 percent over 2006.
“It’s not surprising that people are paying less, given the popularity of free accounts,” said Nessa Feddis, senior federal counsel for the ABA. “Given the competitive environment, we will continue to see the trend,” she predicted, barring the adoption of any new regulations.
This year, 65 percent of those surveyed paid $3 or less, with52 percent paying nothing — with the latter category growing the fastest over the last few years. Last year, 57 percent paid $3 or less, and 43 percent paid nothing.
“No-cost accounts have definitely caught on … in the last few years … as minimum balance requirements have gone by the wayside,” said Feddis, who noted that banks can’t technically tout the account as “free” if they require a minimum balance.
In the metro area in particular, she said, there is a “robust” choice of banks for consumers.
Wachovia has no minimum balance requirements or monthly fees, with a $100 minimum deposit to open a checking account, spokeswoman Barbara Nate said.
PNC requires a $25 minimum opening deposit, but doesn’t have monthly fees or balance requirements. PNC bank also reimburses foreign bank ATM fees for customers with balances over $2,000, according to spokesman Fred Solomon.
Citibank offers six different kinds of checking accounts, and five of them don’t have monthly fees if you do a combination of maintaining a certain balance, using online bill pay, or setting up direct deposit, according to Luis Rosero, vice president of public affairs of Citigroup.
Basic checking in D.C. is about $7 per month if you don’t meet these requirements.
Bank of America waives the monthly maintenance fee if balance requirements or direct deposit requirements are met, according to spokeswoman Diane Wagner.
