WASHINGTON — The average big bank checking account has 30 fees associated with it and lacks transparency, according to a new study from WalletHub.
Washington-based WalletHub released its annual Checking Account Transparency Report that indicates that the average number of bank fees is about the same as last year's report, with most banks falling into the 20-to-40-total-fee range, with some reaching almost 50.
The study analyzed checking accounts with an online application component from 25 of the largest U.S. consumer-facing banks, based on total asset volume as reported by the Federal Deposit Insurance Corp. The study's analysis focused on three key questions: Are key checking account fees disclosed up front? Can the consumer easily find fee disclosures on the website? Once one gets to the fee information, how easy is it to digest?
The format and the content of fee information provided on the websites of financial institutions vary widely, the study found.
"All of this can cause confusion and ultimately result in higher fees for the consumer, as evidenced by the industry's $31.8 billion in overdraft fee revenue in 2013, as reported by Moebs Services," according to WalletHub's study summary.
WalletHub "scored" each bank account on a 30-point scale, allotting 10 points each for visibility of major fees on product pages, accessibility of fee information and clarity of fee information.
The highest-scoring bank was Capital One Financial Corp., which received 90%. The lowest-scoring bank was M&T Bank, which received 26.67%.
