Tuesday, October 1, 2019

Only 1 in 5 CUs Offer Free Checking

Moebs Services is reporting that credit unions have dramatically reduced their offerings of free checking.

Free checking has declined by 59.2 percent so far this year at credit unions.

According to Moebs Services, only 20 percent of credit unions offered free checking in 2019. At the end of 2018, 49 percent of all credit unions offered free checking.

In comparison, 19.4 percent of banks provided free checking.

Michael Moebs, Economist & CEO of Moebs Services, blamed the Durbin Amendment for the decline in free checking as it reduced interchange fee revenues.

Most free checking accounts are unprofitable, according to Moebs.

1 comment:

  1. This article is short-sighted. Credit unions are still the better value for the member compared to for-profit banks. This article doesn't cover the actual fee/charge for checking, but I'm guessing it is lower than banks. Additionally, at most credit unions, even with checking that has a built-in monthly charge the monthly fee is waived if certain requirements are met.



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