The majority of people, 72%, do not pay bank charges at all, but those who can afford it the least are, according to the report. Generally, the average U.S. checking account holder reports less than $ 8 in fees, including service charges, ATM fees, and overdrafts.
Households that had a setback during the pandemic, whether job loss or hours, pay a monthly average of more than $ 11 per month as checking account money. Meanwhile, account holders who say their household income has not been harmed by the pandemic, which pays on average less than $ 3 a month.
“Those whose personal finances were hurt by the pandemic were hit with a double whammy of higher bank charges,” said Mark Hamrick, senior economic analyst at Bankrate. “Unemployment or loss of income can be devastating, but one should try to avoid adding financial insults by paying too much bank charges when there are so many cheaper options.”
Those already affected excessively by the pandemic, especially coloreds, also pay higher bank charges.
While white account holders report paying $ 5 a month in fees, Blacks and Spaniards pay more than twice that amount, at $ 12 and $ 14 a month, respectively. Holders of white check computers also say much more that they pay nothing monthly, while 79% pay zero monthly for checks, while only 56% of Blacks and 50% of Hispanics pay nothing per month.
Younger people pay more for their checking accounts than older people. Holders of one thousand check computers, people between the ages of 24 and 39, pay $ 15 a month in fees. Gen Xers – 40 to 55 years old – pay $ 6 a month, while Baby Boomers, 56 and 74, pay only $ 2 a month.
The average amount for overdrafts reached a record $ 33.47, while the average total cost of using ATMs outside the network dropped slightly to $ 4.64, the report said.
More people turned to mobile banking in 2020, with 64% reporting that they changed their payment practices more frequently than online methods due to the pandemic.
“A lot of consumers are playing it smart by actually giving up social with their banking and payment technologies,” Hamrick added. ‘Once we’d get out of the pandemic and the economic downturn, it would still be wise to take advantage of the newer mobile banking technologies, not just to save time, but to help keep track of account balances and fees. , as well as potentially expensive overdrafts. and fraud. “
The report found that the average account holder has been with their institution for more than 14 years. There are now more options to explore than banking, with many regional banks, online banks and credit unions, as well as large banks offering check accounts with low or no fees.