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Banks Ditch Free Checking At Breakneck Pace, But Not Credit Unions

Tuesday, March 18, 2014 - 5:55 AM
From The Financial Brand
Since 2010, the availability of standalone free checking at credit unions has declined modestly from 78% to 72%. Meanwhile at banks, the percentage has plummeted from 65% to 38%.
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Ken TuminKen Tumin5,471 posts since
Nov 29, 2009
Rep Points: 125,633
1. Tuesday, March 18, 2014 - 8:33 AM
This really can't be that surprising.  The Gov't limited fees on a For-Profit enterprise.  Banks aren't looking for less profit, thus they find other ways to make it up.  The fact that you aren't seeing a mass exodus from the banks means either credit unions aren't getter the message out well enough about their services, people are still finding value at their bank, or they think it is just too much of a pain to switch.  But regardless, the folks can thank the Gov't for the fees.

As non-profits, credit unions don't have the same concerns.  That isn't to say they don't need to operate in the black, but they will look for more creative ways to maintain the levels of income that they need.

cd :O)
ChrisCDChrisCD70 posts since
Nov 18, 2010
Rep Points: 457