The majority of people, 72%, do not pay any bank fees, but those who do tend to be the least able to afford it, according to the report. In general, the average U.S. current account holder reports that he pays less than $ 8 in fees, including service charges, ATMs, and overdraft fines per month.
However, households that have suffered a decline in income during the pandemic, either from job loss or reduced hours, pay a monthly average of more than $ 11 a month in current account fees. Meanwhile, account holders claiming that their family income has not been affected by the pandemic report they pay an average of less than $ 3 a month.
“Those whose personal finances have been negatively affected by the pandemic have been affected by a double whammy of higher bank fees,” said Mark Hamrick, senior economic analyst at Bankrate.com. “Unemployment or loss of income can be devastating, but one must try to avoid adding financial insults to injuries by paying too much on bank fees when so many less expensive options abound.”
Those who have already been disproportionately impacted by the pandemic, particularly people of color, are also paying higher bank fees.
While white current account holders report paying $ 5 a month in fees, blacks and Hispanics pay more than double that amount, at $ 12 and $ 14 a month, respectively. White current account holders are also much more likely to say they pay nothing in monthly installments, with 79% paying zero monthly in checks while only 56% of blacks and 50% of Hispanics pay nothing a month. .
Younger people pay more for their current accounts than older people. Millennial current account holders, ages 24 to 39, report paying $ 15 a month in fees. Gen Xers, ages 40 to 55, pays $ 6 a month, while Baby Boomers, ages 56 and 74, only pays $ 2 a month.
The average overdraft rate hit a record $ 33.47, while the average total cost of using offline ATMs fell slightly to $ 4.64, according to the report.
More people have turned to mobile banking by 2020, and 64% reported adjusting their payment practices to the use of online methods more frequently as a direct result of the pandemic.
“A lot of consumers are playing it smart, in fact, they’re involved in social distancing with their banking and payment technologies,” Hamrick added. “Once we have emerged from the pandemic and economic downturn, it will still be advisable to take advantage of new mobile banking technologies not only to save time, but to help keep up with account balances and commissions, as well as potential overdrafts. expensive. and fraud “.
The report found that the average account holder has been at their institution for over 14 years. There are now more options to explore when banking, with many regional banks, online banks and credit unions, as well as large banks offering checking accounts with low or zero fees.