As interest rates slowly increase you may be looking for a better place to stash your cash. Finding a financial institution that offers the best of both worlds (high rates & low fees) is important.
Before switching to a new financial institution for a slightly better rate check out WalletHub’s latest research from their 2017 Banking Landscape Report. It revealed current checking account trends that you should know about.
Their findings show that for lower fees and higher rates the better option is a local bank or credit union.
- Community bank accounts are 46% less expensive than those from national banks.
- Community bank accounts have 24% more features.
- Community banks interest rates are nearly 10 times higher on average.
- Credit unions are 39% cheaper than online checking accounts.
WalletHub found the average checking account has between 20 and 40 different fees. The problem is there are no limits to how many and how high bank fees can get and that is scary for consumers.
Right now there is no regulatory limit on what banks can charge in service fees on your checking account. If a bank wanted to charge you a $10 fee to withdraw $20 from their ATM, they could do it.
Many consumers have lost trust in mainstream banking because of unfair behavior by some of the largest institutions. It’s important to know that not all banks focus on sneaky fee tactics. Bankrate found that 38% of banks still offer checking accounts with no monthly fees or balance requirements, with the majority of those being local banks.
You should weigh all options that are important to you when choosing a new financial institution. Large national banks may have the latest and greatest when it comes to technology, but the primary purpose of your financial institution should be to help you save money.