Feb. 26--Determined to avoid fees on your checking account? Your chances are better at a credit union, according to a new report.
A Bankrate.com survey released Thursday found that 72 percent of the nation's biggest credit unions offer free checking accounts compared with 38 percent of the nation's largest banks.
And, when credit union customers do get hit with a fee, they're generally lower than banks charge, said Bankrate.com, which publishes information about personal finance.
The average overdraft fee at credit unions, for example, is $26.78, compared with $32.74 at banks, said Bankrate.com.
Credit unions and banks, however, are making it harder to qualify for a free checking account.
Five years ago, 78 percent of credit unions and 65 percent of banks offered "stand-alone" free checking accounts, meaning that a customer with no other relationship with the institution could find an account with no fees.
One practice most often shared by credit unions and banks: Nearly all, or 96 percent in the case of credit unions, impose fees on nonmembers who withdraw money from their ATMs.
"When evaluating checking accounts, consumers should definitely include credit unions in their search," Greg McBride, Bankrate.com chief financial analyst, said in a statement. "Many participate in large ATM networks that extend the credit union's reach."
Bankrate.com surveyed the 50 biggest U.S. credit unions by deposits Jan. 6-12. It did a similar survey of banks last fall.
byerak@tribpub.com
