Truly free checking accounts are becoming rarer as banks add more fees to boost their profits. Among other fees, the average monthly service fee on checking accounts is a record $5.48, up 25 percent from the Bankrate survey a year ago.
Low interest rates may be great for borrowers, but they're terrible for savers. Bank accounts on average are paying around half a percent -- which doesn't even keep up with inflation. What to do? Turn to banks on the Internet.
While thousands of Americans unleash their anger at big banks in protests around the country, many more are registering their dissatisfaction from their keyboards. In the wake of last week's news that Bank of America is adding a new $5 fee for debit card use, online-only banks saw waves of new customers coming through their virtual doors.
Free checking is becoming an endangered species as banks add fees for basic services or add requirements like direct deposit or high balances. The latest move comes from Bank of America, which charges a $8.95-per-month fee Tuesday for customers who want paper statements or the use of tellers.
