Free checking has dropped to about 45 percent of U.S. customer accounts, compared with 65 percent last year, according to a Bankrate.com study released Monday.
The average monthly fee on non-interest checking accounts is $4.37, compared with $2.49 last year, the survey found. The average balance required to avoid the charge has more than doubled to $585.
“Just because banks are eliminating free checking doesn’t mean you’re going to be stuck paying the fee,” said Greg McBride, senior financial analyst at Bankrate.com, a unit of Bankrate Inc.
Legislation capping debit-card swipe fees charged to merchants and restrictions on overdraft charges are driving banks to stop offering free checking as a way to raise revenue, McBride said. Changes to debit-card swipe fees may cut annual revenue at the biggest banks by $8 billion, data compiled by Bloomberg Government show.
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Debit-card fees are still rare, McBride said. Less than 2 percent of accounts surveyed charge a monthly or annual fee for using a debit card and 4 percent apply a point-of-sale fee when swiping it.
“We’re going to see more fees for having debit cards or more fees for using a debit card but such fees will likely still be the exception rather than the rule,” McBride said.
Bankrate, based in North Palm Beach, Fla., surveyed 243 interest-bearing checking accounts and 238 non-interest accounts nationwide.