Subscribe Now!
In a previous column we examined data showing that only 21% of big banks offer free checking accounts. The data below demonstrates that eliminating free checking accounts has made big banks less appealing to many mass market consumers.
In May 2013, FindABetterBank.com users who selected an account with a big bank had daily balances that were 78% higher than mass market shoppers choosing accounts with small institutions (less than 100 branches). It’s clear that without free checking products, big banks are pushing many mass market shoppers to other institutions.
Large Banks (1000+ branches) |
Regional Banks (100-999 branches) |
Small Institutions (less than 100 branches) |
Direct Banks | |
---|---|---|---|---|
Mean Lowest Daily Balance | $1,657 | $1,585 | $929 | $1,142 |
Source: FindABetterBank.com May 2013

How to Build a Successful Business Case for CRM
Convincing leadership to invest in CRM can be challenging. Be certain to do the groundwork, show the data, and prepare for the questions.
Read More about How to Build a Successful Business Case for CRM

Unveiling the Secrets of Personalization and Engagement
Learn how two prominent financial institutions are using innovative technologies to amplify their personalization and engagement strategies.
Read More about Unveiling the Secrets of Personalization and Engagement
Shoppers with low balances are most likely to choose free checking accounts – which most big banks don’t offer – and shoppers with higher balances are more likely to choose fee-based accounts:
- 54% of shoppers with lowest daily balances under $1,000 chose a free checking account compared to 20% of shoppers with balances of $5,000 or more.
- 67% of high balance shoppers chose checking accounts that have monthly fees of $10 or more – in most cases their high balances will enable them to avoid the fee. Only 16% of low balance shoppers chose accounts with high monthly fees.
Type of account selected | $1,000 or less |
$1000 to $2000 |
$2000 to $5000 |
Over $5000 |
---|---|---|---|---|
Free checking | 54% | 45% | 37% | 20% |
$10 or less monthly fee | 30% | 32% | 26% | 13% |
$10 to $20 monthly fee | 14% | 19% | 31% | 34% |
$20 + monthly fee | 2% | 3% | 6% | 33% |
Source: FindABetterBank.com May 2013