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Justin Pritchard

Why are Checking Accounts so Expensive?

By March 29, 2012

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You've probably noticed fees rising in your checking account. Why? According to Chase Bank, roughly 70% of customers who hold less than $100,000 with the bank are unprofitable.

As a result, banks are raising fees and chasing the wealthy. These are of course ways to increase revenue, but what about cutting costs? How much could you, a tech-savvy customer who banks electronically, really cost the bank?

Zoot's Alex Johnson notes that banks should be able to improve profitability by operating more efficiently. This would allow them to serve more of us -- without continuing to raise fees and alienate customers. $100,000 is a lot of money to keep at the bank; banks that figure out how to make do with less should have an easy time of leaving the competition behind. [via TheFinancialBrand.com]

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