WASHINGTON—For consumers who do not choose wisely a checking account can cost as much as $800 a year as the result of as many as 49 different fees, a new study reveals.
The report from WalletHub also indicates that consumers can save on everyday banking by choosing checking accounts from credit unions and online-only banks.
WalletHub’s 2015 Checking Account Cost Comparison Report compared checking accounts from 35 of the largest banks and credit unions to determine how costs vary across institutions and types of users.
Among CUs, the most affordable deals are at Navy FCU, BECU, State Employees CU (N.C.), Pentagon FCU, and Alliant CU in Chicago, which ranked one through five respectively. SECU and Pentagon tied for third.
Bank Low-Cost Leaders
Among banks, the low-cost leaders are Capital One, Ally Bank, Charles Schwab Bank, Santander and Discover Bank, respectively.
Key findings from the study:
- Complex overdraft policy differences make it nearly impossible for customers to understand which account will be most affordable based on their particular usage habits, WalletHub stated. “People who find themselves repeatedly overdrawing their accounts should consider alternative checking accounts, which either do not allow overdraft fees or charge relatively low overdraft fees.”
- The less money you have, the more a checking account will cost you, WalletHub stated. The average “Cash Strapped” consumer would incur roughly $470 in fees each year.
- Santander extra20 Checking is the best overall checking account on the market, topping three out of the five consumer profile scenarios WalletHub considered. This account offers a $20 reward each month for making a direct deposit in excess of $1,500 and two online bill payments. However, keep in mind that you’ll have to open a savings account as well.