According to a Consumer Reports banking industry investigation, consumers are likely to encounter fee hikes and tougher account requirements while the economy remains weak. The organization's full report hit newsstands today.
Customers with a lot of accounts at one bank might avoid some fees, but they're not immune, the report says. Banks may try a spectrum of charges even for good customers, including fees for paper statements and higher safe-deposit costs. Banks such as Chase and PNC are also now charging a $25 fee to close certain accounts.
The report says that consumers are more likely to find lower fees and better rates at community banks, larger credit unions and online institutions.
The organization offered these consumers tips to consider before switching banks:
- If you're facing a single new fee, see what it would take to avoid it. Increasing your account balance by a few hundred dollars or signing up for direct deposit might work.
- Plan a weekly visit to an ATM in your bank's network to withdraw cash instead of going out of network.
- Try to negotiate. You might be able to get a fee waived if you tell your bank you're thinking about moving your accounts.
- Consider convenience. Does the bank have adequate ATM locations and local branches with convenient hours, or give you privileges to use out-of-network ATMs?
- Check with competing banks and credit unions, starting with their websites. That's where you'll find complete information about rates, fees, terms and conditions.
Consumer Reports is an independent product-testing organization founded in 1936.
For more information on this topic, visit our trends/statistics research center.
