Synergistics Research has released results of a new survey of consumers 18 years and older, and reveals that three in 10 expressed interest in “a checking account that would have a higher overall maintenance fee in return for no other fees.” How high a fee? According to the survey, 18 percent would be willing to pay as much as $10 per month for such an account.
The article quotes Genie M. Driskill, COO of SYNERGISTICS as saying:
“New rules regarding debit card and ATM overdrafts may have an impact on the overall fee income of financial institutions – a revenue stream that contributed to subsidizing free checking accounts. So, after many years of pursuing share gaining strategies by offering free checking, many providers may have to take away from customers the pricing deals that initially attracted them. “
Pricing DDA services appropriately will be a key ingredient of financial services institutions’ success in the coming years. $10 per month is not much compared to some of the new fee levels in the market, and bankers might exercise caution in evaluating the importance of the trade-off as actually presented in this survey, “in return for no other fees.” Consumers want candor and transparency from their financial institution, and a straightforward expression of the cost of services is a critical element of that relationship. Those agreeing that they would pay a fee are not making that choice out of the goodness of their hearts or love for their banks; they are seeking relief from the aggravation of feeling constantly “nickel and dimed.”