NEW YORK – Forty-one of the nation’s 50 largest credit unions (82%) offer free checking accounts to all members, with no minimum balance requirements or monthly service fees, according to a new Bankrate.com report.
That’s in stark contrast to the 38% of banks that can say the same, according to Bankrate.com’s most recent survey of bank checking fees, which was conducted in Fall 2017.
Bankrate reported that among the 18% of credit unions that charge monthly service fees, the most common fee is just $5 (well below the $12 most commonly charged by banks for non-interest accounts and $25 for interest-bearing accounts), the company said.
“Credit unions are also the clear leaders (in low price) when it comes to overdraft fees, which average $28.20 at credit unions and $33.38 at banks,” the analysis found. “Both are record highs.”
According to Bankrate.com, one area where credit unions align very closely with banks is ATM surcharges. Ninety-two percent of the credit unions in Bankrate.com’s survey charge non-members who use their ATMs, versus 99% of banks. The most common fee for each type of financial institution is $3, the report stated.
The research also found there’s a separate ATM fee that many institutions charge their own customers who use out-of-network ATMs. This is typically $1.50 at credit unions and $2.50 at banks, said Bankrate.com, adding that 36% of credit unions offer their members at least one free out-of-network withdrawal per week; 30% of banks do the same.
“Between expanded membership eligibility, nationwide ATM alliances and even shared branches, many consumers find credit unions to be a convenient and viable option in the search for free checking,” Greg McBride, Bankrate.com’s chief financial analyst said in a statement.