What effect does raising fees have on the customer? A negative one.
Tacking new fees onto existing checking accounts would get some 64 percent of customers to consider taking their business elsewhere, according to data published Monday by Bankrate.com. The poll of 1,006 Americans conducted by Princeton Survey Research also showed that the number of people who are not comfortable with their savings is growing and that financial security still remains.
In terms of financial relationships, checking fees appeared to be the biggest threat to banks losing business.
"In these economic times, Americans are particularly sensitive to higher bank fees, with 64 percent saying they would consider switching to a different financial institution if their checking account fees increased," says Greg McBride, CFA, senior financial analyst for Bankrate.com. "Every dollar counts and consumers that are willing to pursue the best returns on their money are a step closer to achieving financial security."
The study found that adults earning more than $75,000 per year were most likely to move their accounts to a different bank because of fees, while 71 percent of those under 30 would choose a new financial institution as a result to added checking fees.