Some banks have begun charging fees for new service offerings such as mobile check deposit. However, it may make more sense to charge fees for old services like unlimited check writing and paper monthly statements.
By Rob Rubin, Managing Director, Novantas
In May 2013, 3% of shoppers on FindABetterBank selected checking accounts that had monthly service fees of $20 or more. Not surprisingly, many of these shoppers are able to avoid these monthly fees because they maintain large balances or have existing relationships with the institutions selected. But shoppers’ requirements for certain features — like unlimited check writing — also influence which checking accounts they prefer.
Demand for unlimited check writing privileges continues to decline as consumers adopt other payment methods. But those selecting unlimited check writing as a “must have” feature were three times more likely to select checking accounts with high monthly service fees. Marketing departments should consider pushing more of these shoppers towards premium accounts by limiting check writing privileges on low-end accounts (e.g., 10 checks per month).
( Read More: Should Banks Charge Fees For Check Writing? )