Service Fees Often Higher At Banks Survey Shows Credit Unions Usually Charge Patrons Less

Fees for checking accounts, credit cards and other services are lower at credit unions than banks, according to a new survey by the credit union industry’s main trade group and a consumer lobby.

The Consumer Federation of America, which released the survey on Wednesday, also said that both banks and credit unions appear to be slowing the rate of fee increases over the past three years.

Stephen Brobeck, CFA executive director, said banks apparently have reached the level with fees where “consumers refuse to pay them” and seek alternatives.

The CFA, along with the Credit Union National Association, said their survey showed the average monthly fee charged by credit unions for regular checking was $3.59 a month compared to $5.97 a month by banks.

For credit cards, annual fees were $11.54 at credit unions and $15.83 a banks. But credit unions charged higher fees for automated teller machines, averaging 71 cents a transaction vs. 53 cents at banks at the institutions’ own ATMs.

Brobeck said consumers can save more than $100 a year by keeping a minimum balance in their checking account, which minimizes check-writing fees, and making sure not to bounce checks.

The American Bankers Association said the survey’s results aren’t surprising, since credit unions are chartered non-profit institutions that are exempt from federal taxes.

ABA spokeswoman Virginia Stafford said the survey doesn’t address an important factor in a consumers’ decision for banking services: easy access to their money.

any credit unions are small and lack the branch networks and staffing of banks, making it less convenient for consumers to access their accounts.

“You can say what you want about price, but consumers still value convenience,” Stafford said. For that reason, many credit union customers also have a separate account at a bank, she said.