Consumers appear willing to pay a higher overall monthly maintenance fee for a checking account that would lack other fees associated with overdrafts, out-of-network ATM charges and stop-check payments, new survey data suggest.
In an online survey of 1,000 checking-account holders Atlanta-based Synergistics Research Corp. conducted in April and May, 30% of respondents expressed interest in such an account, and 10% were very interested.
Given a the choice to choose an appropriate cost for this type of checking account, 60% of respondents indicated they would be willing to pay at least $10 per month. Some 19% said they would pay $15.
“I think consumers want simplicity,” Genie Driskill, Synergistics chief operating officer and senior vice president of research, tells PaymentsSource. “They see that this is probably more simple and favor this one fee as opposed to [multiple] fees” for additional services, she says.
Financial institutions are reevaluating their checking accounts in the aftermath of the Federal Reserve Board’s decision to cap debit interchange rates at 21 cents or so. Some banks already are experimenting with monthly debit card fees (
Driskill believes banks should be encouraged that consumers are open to the sort of fee structure described in Synergistics’ survey. “There are opportunities for banks to reprice and reposition the whole checking-account product line in a way that fairly delivers value to their customers while enhancing profitability,” she says.
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