Magazine article American Banker

Customers Believe Rise in Bank Fees Unneeded: Survey; but Service Charges Are Minor Factor in Choosing Institutions, ABA Learns

Magazine article American Banker

Customers Believe Rise in Bank Fees Unneeded: Survey; but Service Charges Are Minor Factor in Choosing Institutions, ABA Learns

Article excerpt

WASHINGTON -- The majority of people recently surveyed by the American Bankers Association do not believe bankers' claims that increased fees for services are necessary to cover the cost of a bank's business.

"Almost six Americans in 10 disagree with the position of banks that increased service fees are only covering the additional costs of higher interest on accounts like Money Market, IRAs, and certificate of deposit," according to the report.

However, 47% of the 1,500 participants surveyed by telephone said that the level of fees charged by a bank is the least important factor in choosing a bank. Some questions were answered by a reduced (85%) sampling. People who answered these questions had relationships with both a commercial bank and a savings and loan.

Convenience, defined as a bank's locations, hours, and automatic teller machine access, was cited as the most important reason for choosing a bank. Some 32% of the respondents named that as their top priority.

A bank's range of financial services was noted as the second most important reason by 30% of those polled, and the third leading reason was identified as the rate of interest paid on checking and savings balances (28%). …

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