ABA Survey Shows Majority of Bank Customers Pay Nothing for Monthly Bank Services

The majority of bank customers continue to pay nothing in bank fees, according to a recent survey by the American Bankers Association.   Sixty-five percent of consumers spend $3 or less in monthly bank fees for services such as checking account maintenance and ATM access.  Fifty-two percent pay nothing.

“Bank customers today are getting one of the best deals around – 24 hour a day access to their money from anywhere in the world and  the security of knowing their deposits are FDIC-insured – for minimal or zero cost,” said Nessa Feddis, ABA senior federal counsel and retail banking expert.

The annual survey of 1,000 customers, conducted for ABA by Ipsos Reid on August 1-3, 2008 asked questions designed to take a snapshot of current consumer trends.

When asked how much they estimate they spend on fees for banking services each month such as checking account maintenance and ATM access, consumers provided the following responses:

• 52 percent said they pay nothing;
• 13 percent said $3 or less;
• 8 percent said $3 to $6;
• 4 percent said $6 to $8;
• 5 percent said $8 to $10; and
• 13 percent said they pay more than $10.

The findings are consistent with previous ABA consumer surveys dating back to 1998.  

“The cost of gas is up, the cost of food is up, and the cost of almost everything else has risen since 1998.   But the very affordable cost of keeping your money in a checking or savings account hasn’t changed in ten years,” Feddis said. 

While some consumer groups focus on avoidable fees at the highest end of the spectrum, the survey clearly shows that the vast majority of bank customers manage their financial costs well.

The ABA offers the following tips to help further reduce consumer banking costs:

• Free Checking and Savings Accounts — Most banks offer them. 
• ATM Machines – Avoid fees by using your own bank’s ATM.
• Direct Deposit – Many checking accounts are free when your paycheck is automatically deposited each month.
• Minimum Balance – Keep at least the minimum balance in your account.
• Don’t Overdraw – Keep track of transactions and account balances to avoid bounced check fees.  
• Email or Text Alerts — Ask for an automatic alert when your balance falls below a certain level.

The American Bankers Association brings together banks of all sizes and charters into one association. ABA works to enhance the competitiveness of the nation’s banking industry and strengthen America’s economy and communities. Its members – the majority of which are banks with less than $125 million in assets – represent over 95 percent of the industry’s $13.3 trillion in assets and employ over 2 million men and women.