Banks are paying record low interest and charging record high fees
The average yield bank customers get for interest-bearing checking accounts tied a record low of 0.04% this year — yet fees for having such an account and the minimum balance required to avoid such fees both rose to record highs, according to Bankrate’s 2020 checking account and ATM fee study.
The state of play: The average fee for insufficient funds rose 0.3% to $33.47, also the highest it has been in the 23-year history of the annual study.
Yes, but: There was some good news for consumers.
- The total average cost of using out-of-network ATMs decreased slightly, down 8 cents to $4.64, the lowest since 2016.
- Average monthly fees hit a six-year low of $5.27.
- 47% of accounts that don't pay interest were free.