The majority of people, 72%, pay no bank fees at all, but those who tend to be the ones who can least afford it, the report states. Overall, the average U.S. checking account holder reports paying less than $ 8 in fees, including service fees, ATM fees, and monthly fines.
Households that have suffered a decline in income during the pandemic – whether job losses or cuts – pay a monthly average of more than $ 11 a month in checking account fees. Meanwhile, account holders who say their household income is not hurt by the pandemic report, which on average pay less than $ 3 per month, pay Month.
“Those whose personal finances have been negatively impacted by the pandemic have been hit by a double creation of higher bank charges,”
Those who are already disproportionately affected by the pandemic, especially colored ones, also pay higher bank fees.
While white checking account holders report paying $ 5 per. Month in fees, blacks and Hispanics pay more than twice as much, at $ 12 and $ 14 per month, respectively. Month. White control account holders are also much more likely to say they pay nothing in monthly fees, with 79% paying zero monthly for checks, while only 56% of blacks and 50% of Hispanics pay nothing per month. Month.
Younger people pay more for their checking accounts than older ones. Millennial checking account holders, people between the ages of 24 and 39, report paying $ 15 per year. Month in fees. Gen Xers – ages 40 to 55 – pay $ 6 a month, while Baby Boomers ages 56 and 74 pay only $ 2 a month.
The average overdraft fee hit a record $ 33.47, while the average total cost of using ATMs outside the network fell slightly to $ 4.64, according to the report.
More people have turned to mobile banking in 2020, with 64% reporting that they have more often adapted their payment methods to use online methods as a direct result of the pandemic.
“Many consumers are playing smart by actually engaging in social distancing with their banking and payment technologies,” Hamrick added. “Once we get out of the pandemic and the economic downturn, it would still be wise to take advantage of newer mobile banking technologies not only to save time, but to help keep track of account balances and fees as well as potentially expensive overdrafts and fraud. “
The report showed that the average account holder has been with their institution for more than 14 years. There are now more options to explore when banking, with many regional banks, online banks and credit unions as well as large banks offering checking accounts with low or no fees.