WASHINGTON–A new report seeks to evaluate the transparency of the checking account market by analyzing offers advertised on the websites of the 30 biggest banks and five largest credit unions.
The WalletHub analysis identified checking accounts from two credit unions, Navy Federal’s Flagship Checking and Alliant Credit Union’s High Rate Checking Account, as among the most affordable accounts available.
Navy Federal, Boing Employees, and Pentagon Federal finished among WalletHub’s top 10 most affordable financial institutions.
The Checking Account Cost Comparison Report from WalletHub, attempts to answer three fundamental questions:
- Visibility of Major Fees on Product Page: Are key checking account fees disclosed up front?
- Accessibility of Fee Information: Can consumers easily find fee disclosures on the website?
- Clarity of Fee Information: Once an applicant finds fee information, how easy is it to digest?
- WalletHub said that making the wrong choice on a checking account can cost a consumer as much as $810 per year. “All consumers can save on everyday banking by gravitating to checking accounts from credit unions and online-only banks,” WalletHub said, “with cash strapped consumers eligible to save the most money on average, up to $423 per year.”
Among the findings:
- The average checking account has approximately 22 total fees. As was the case in previous years, differing disclosure policies made it hard to determine the precise number of fees associated with each checking account, but most institutions fall in the 20 - 40 range, with some reaching nearly 50 total fees, according to WalletHub. “The sheer number of different fees associated with checking accounts prevents effective product comparison and decreases the likelihood that consumers will find the best checking accounts for their needs,” the company said.
- A general lack of uniformity continues to exist across institutions in terms of disclosure formatting, the language used to describe fees and the extent to which different fees are delineated. “This significantly inhibits consumer rate-shopping efforts,” WalletHub said.
In offering advice to find the best deals, WalletHub urged consumers to read the fee schedule, don’t expect consistency, remember that not all fees are disclosed, evaluate practical needs, and avoid unnecessary bias, that is, “try not to start the search process with the baggage of preconceived notions about the type of financial institution you’ll get your account from, the necessity of in-person banking or the importance of a physical checkbook.
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