The Cost of Checking

The cost of checking and savings accounts skyrocketed over the last three years at the same time interest rates paid on the accounts plummeted, according to the Consumer Federation of America and the U.S. Public Interest Research Group. The average annual cost of a regular checking account was $184.16 this year, up from $155.39 in 1990. That’s an 18.5% increase, nearly double the inflation rate over the period. According to the Consumer Federation, commercial banks earned a record $32.2 billion in profit last year. The two groups surveyed 300 large banks in 22 states and the District of Columbia. The figures do not apply if consumers reduce or eliminate fees by maintaining minimum balances.

1990 1993 Total $155.39 $184.16 Monthly fee (for the year) $61.32 $69.84 Per-check charge $52.58 $60.64 Automated teller machine fee $21.30 $29.25 Bounced check fee $15.11 $18.35 Deposited item returned fee $4.85 $6.08

Source: U.S. Public Interest Research Group, Consumer Federation of America, Associated Press