NEW YORK-Free checking continues to be more prevalent at credit unions than at banks.
A survey of America's 50 largest credit unions found that 72% offer free checking with no strings attached, versus 39% of banks that offer standalone free checking, according to data compiled by Bankrate.com.
Bankrate.com reported that 96% of the credit union checking accounts that it surveyed are free or can become free with direct deposit, e-statements, transaction activity, other accounts/balances or some combination thereof. Since 2010, the availability of standalone free checking at credit unions has declined modestly from 78% to 72%. At banks, the percentage has plummeted from 65% to 39%, the company reported
"While banks have significantly scaled back free checking accounts, free checking remains the rule, rather than the exception, among credit unions," Greg McBride, CFA, Bankrate.com's senior financial analyst, said in a released statement.
Bankrate.com found that credit unions' average ATM surcharge for non-members has jumped 10% over the past year, to $2.29 from $2.08.
"Credit unions increasing the fee outnumbered those decreasing the fee by a margin of nearly 3-to-1," Bankrate.com reported. "Surcharging is nearly universal at both banks and credit unions, with $2 and $3 the most common fees assessed by credit unions and $3 the most common by banks.
Among the other findings in the Bankrate.com survey:
* Half of the credit union checking accounts that Bankrate surveyed have no minimum opening deposit requirement and none of the 50 accounts require more than $100 to open.
* 74% have no minimum balance requirement, 18% have a monthly fee regardless of balance and the remaining 8% have a fee that can be waived by maintaining a balance of no more than $750.
* The range of monthly service fees on the accounts is $1 to $10, with $2 and $5 the most common.
* The range of non-sufficient funds (NSF) fees at credit unions is $12 to $37. This compares to $18 to $38.50 at banks.
* The most common NSF fee at credit unions is $30, compared with $35 at banks.
* Credit union fees for debit cards and debit card transactions are rare (present on less than 5% of accounts in each case).
* 30% of credit unions either do not charge a fee to use another bank's ATM or provide at least one free withdrawal per week.
