Free Checking Widely Available Despite Major Bank’s Offering Cut Backs

Bank of America Corp (NYSE: BAC) and other large-cap banks have cut back on their free checking offerings as a result of new financial regulations, however, MoneyRates.com 2010 semi-annual Bank Fee Survey reported that free checking accounts are still widely available.

The latest survey release comes at a time of change for the banking industry. Financial companies are reeling from new regulations which will likely cut into the profitability of banks, which many fear will lead to higher account fees and fewer available services.

MoneyRates’ July 2010 survey suggested that this trend hasn’t taken place yet, but it will be important to watch for the January 2011 results when the effects of the financial reform legislation are more fully realized by banks.

According to the report, free checking remains widely available. In January 2010, 44.6% of checking accounts surveyed carried no monthly maintenance fees. In the July 2010 survey, that number was virtually unchanged, at 44.2%. The report also said that minimum balances have declined for banks, stating that banks will waive checking account fees if a certain balance is maintained. The survey also said that monthly service fees declined from an average of$5.90 in January to $5.85 in July.

The report said that there has been some good news on the fee front, but other fees are still rising. A release from the firm said, “Despite a generally favorable outlook for checking account customers, some bank fees have risen. Take ATM fees outside your bank’s network. If you use the ATM of a bank other than your own, it is likely to cost you more these days–an average of $2.14, up 13.8% from the $1.88 average found in January 2010. Overdraft fees are have also risen, reaching an average of $29.26. This is up slightly from the January 2010 average of $28.81.”

The Bank Fee Survey is conducted semiannually and was commissioned by the New York State Banking Department. The survey focuses on banks doing business in New York state, but the banking landscape in New York includes some of the industry’s leading names; with those banks represented, the survey sample is broad enough to paint a pretty accurate picture of banking trends across the nation.