Bank Fees on the Rise
Everyone knows bigger is cheaper, right? That's why stores such as Sams Club and Costco are so popular.
But a new survey finds that in the banking industry, bigger is actually more expensive. In a report released by the Illinois Public Interest Research Group and the Coalition for Consumer Rights, it was found that consumers pay 15% more to have a checking account at a big a bank that at a small bank. In 1995 consumers paid $17.76 more on average for an account at a large banking institution; now they're paying $27.95 more.
Typical Bank Fees
Large Bank $218.27
Small Bank $190.33
Credit Union $108.00
The report also found that large banks increased the minimum balance requirement to an average of $642, while small banks decreased their minimum to $492.
A spokesman for the Research Groups stated, "Big banks have their hands buried deep in our wallets creating a big bank fee gap." The group cites mergers, which cause decreased competition, as enabling the banks to get away with the higher fees.
But the California Bankers Association says the report, which surveyed 419 banks in 29 states, creates an atypical profile of a bank customer. The American Bankers Association also says the survey is flawed. According to Donald Ogilvie, Executive Vice President of the ABA, "With more than 40,000 financial institutions competing for customers, today's consumer is in a buyers' market for bank services. No bank could overprice its services and remain viable. Customers would simply take their money to one of the other 39,999 institutions." If you have information on this "Bank Fee" question, a merchant anecdote, or just want to sound off, send your comments to greensheet@greensheet.com, or call our Hot Line 800-757-4441.
