A new study finds that checking account fees have risen again this year to an all-time high. Bankrate's 2008 Checking Study details the average fees associated with using and maintaining an interest bearing account, including bounced check fees, ATM surcharges, and monthly service fees.
Bankrate's survey of leading banks yielded the following data:
• ATM surcharges moved to $1.97 while the cost of using an outside ATM reached $1.46, putting the total average cost of using an out-of-network ATM at $3.43. Additionally, bounced check fees rose 2.5 percent this year, up to $28.95.
• With interest bearing accounts, monthly service fees hit a new high at an average of $11.97. Minimum balances also set a record with an average balance of $3,461.84 needed to keep an account open.
• For non-interest bearing accounts, monthly service fees hit a new low at an average of $1.96. Minimum balances also hit a new low with an average balance of $109.26 required.
To avoid some of the penalties associated with checking accounts, Bankrate's experts recommend taking the following steps:
• Consumers should keep close tabs on their accounts by balancing their checkbooks regularly as well as checking their account balances regularly online. Furthermore, sign up for overdraft protection with a funded savings account to ensure that you don't bounce a check.
• Use foresight when taking out money from your bank's ATM. Taking out $30 or $40 dollars from an out-of-network ATM is the same as paying 9 percent interest on your money.
• Investigate online banks. Many reputable online banks have generous ATM fee reimbursement programs for frequent users.
"In today's uncertain economic environment when every dollar counts, it is more important than ever for consumers to be vigilant about avoiding bank fees," said Bankrate Sr. Financial Analyst, Greg McBride. "Bankrate.com's annual Checking Study provides consumers with the tools and advice to find the best account and avoid unnecessary fees."
Bankrate.com surveyed one interest checking account and one noninterest checking account at each of the largest banks and thrifts in each of 25 large markets to find the latest trends on checking account and ATM fees. There were 247 interest accounts and 226 noninterest accounts surveyed at 249 banks and thrifts in the top 25 metropolitan areas.
The complete study is available online..
