Nearly Two-Thirds of Consumers Sampled Report Being Unaware of Low
Earning Checking Account Interest Rates and More Than a Quarter Didn’t
Know Their Bank Charged Extraneous Fees
LOUISVILLE, Ky.–(BUSINESS WIRE)–According to a recently completed 12,000 response survey of a nationally
representative sample, MemoryBank — an online-only banking platform
available nationally — concluded that nearly two-thirds of consumers
conduct their daily banking routines without much knowledge of their
current account’s low earning rate, while more than a quarter were
unaware of fees which diminish their account’s economic benefits before
“More than ever before, consumers need to be aware of the perks and
pitfalls of their checking and savings accounts. With the ongoing
transformation in banking, there are digital options available in the
marketplace that boast higher interest rates and lower fees, while
providing a top-of-the line customer experience for consumers that don’t
require a high-touch, brick-and-mortar banking experience. That’s why we
created MemoryBank,” said Andrew Varga, Chief Strategy & Innovation
Officer at MemoryBank. With more than 48% of respondents with 2017
financial goals reporting a desire to save more money as their financial
resolution, these survey results could not have come at a better time.
Most interest earning accounts don’t earn much.
Based on the survey results, most respondents reported not knowing that
their checking and savings account earned very low interest rates or
that they weren’t earning interest at all. In particular, the survey
found that nearly 61% of millennial consumers sampled didn’t even know
what their interest rate was or that they weren’t earning anything on
their primary checking account. In addition, Generation X consumers were
even less aware than their millennial counterparts, with 65% of those
with checking accounts reporting a lack of knowledge of their current
account’s low earning rate or earning no interest on their accounts.
What consumers also may not know is that the national average on
interest-earning checking accounts is 0.04% APY^, and 0.06%
APY^ for savings. By placing money in an account that earns
little to no interest, consumers are missing out on substantial earning
potential that could be saved by simply switching banks.
Thanks to the creation of online-only banks that pass along
infrastructure savings directly to their customers, there are
alternative banking options out there with more earning potential for
those consumers that do not require a large brick-and-mortar footprint
from their bank. MemoryBank, which offers an interest checking account
called EarnMore^, gives qualifying customers the opportunity
to earn up to 1.50% APY† on their deposits. That’s over 30
times^ more than the national average for interest checking
accounts. When it comes to interest-bearing accounts, it pays to be a
discerning and savvy consumer. If not, it could end up costing you.
Fees? What fees?
Another compelling finding of the Financial Fitness survey revealed many
consumers did not know what they were being charged for ATM or monthly
account maintenance fees. According to an analysis by SNL Financial and
CNNMoney***, three of the big four banks earned more than $6
billion in ATM and overdraft fees alone in 2015, which breaks down to
about $25 per U.S. adult.
Although many consumers largely go cashless, over 30% of survey
respondents reported using an ATM 10 or more times in the last 12
months. According to a study by Bankrate*, consumers are hit
with fees for using out-of-network ATMs —the average ATM fee is $4.57
every time a user withdrawals cash, costing consumers $45 per year or
more. To help save consumers hard-earned money, MemoryBank provides
access to over 85,000 surcharge-free ATMs**around the world,
that’s more than the top five banks combined^^.
The survey also revealed more than 20% of respondents did not realize
their bank charged a monthly maintenance fee just for using it. The same
Bankrate study* also found the national average monthly
maintenance fee for most banks is $15.17 for interest accounts and $5.78
for non-interest accounts — that’s up to $182.04 per year in monthly
account maintenance fees the average consumer could be charged.
MemoryBank does not charge maintenance fees.
It’s time to reevaluate your bank.
MemoryBank’s survey sheds much needed light on the metaphorical holes in
the pockets of U.S. consumers. “We conducted this study to continue to
help educate consumers in making better banking choices, as well as to
continue to improve our own offerings,” said Varga. “The results showed
us that consumers that may be willing to bank digitally are leaving a
lot of money on the table by continuing to use accounts with low
interest rates and higher fees. With the start of the New Year, now is
the time to put your accounts under the microscope and demand more from
Founded in 2016, MemoryBank is a new type of national branchless banking
platform dedicated to providing digitally savvy, on-the-go customers
with convenient “no hassle banking” and industry-leading interest rates.
MemoryBank, which offers an interest checking account called EarnMore^,
gives qualifying customers the opportunity to earn up to 1.50% APY†
on their deposits. That’s over 30 times^ more than the
national average for interest checking accounts. The MemoryBank brand
name connects the literal idea of digital storage with the positive
emotional memories collected over a lifetime. As a division of Republic
Bank & Trust Company, it is a Member of FDIC with the highest possible
A+ rating from the Better Business Bureau. Visit www.mymemorybank.com
to learn more.
^The interest rate earned on deposits in an EarnMore Account will remain
higher than the national interest rate for checking accounts defined as
a simple average of rates paid by all insured U.S. depository
institutions and branches for which data is available as reported by the
FDIC on 12/27/16, if you meet minimum activity requirements as detailed
on our website at http://www.mymemorybank.com/home/earnmore-account.
As of 12/27/16 the interest rate earned on deposits in an EarnMore
Account is over 30 times higher than the national interest rate for
checking accounts defined as a simple average of rates paid by all
insured U.S. depository institutions and branches for which data is
available as reported by the FDIC
†Based on the current Annual Percentage Yield (APY) of 1.0% as of
12/27/16, plus a 0.50% bonus APY available to new EarnMore customers
meeting minimum activity requirements as detailed on our website at http://www.mymemorybank.com/home/earnmore-account
for the first 12 statements (bonus period), on balances from $0.01 –
249,999.99. Minimum $50.00 to open account. After the bonus period you
must maintain activity requirements to earn the current APY and no bonus
APY is available. Rates may change at any time. A new customer is
defined as not having an EarnMore Account in the six months prior to
date of account opening. This APY plus bonus APY is over 30 times higher
than the national interest rate for checking accounts defined as a
simple average of rates paid by all insured U.S. depository institutions
and branches for which data is available as reported by the FDIC on
12/27/16. If activity requirements are not met or balances are in excess
of $249,999.99, the APY is .05%. Fees may reduce earnings.
**Number of ATM locations subject to change. Look for the Allpoint,
MoneyPass, SUM, or Presto logos at the machine.
^^Based on data compiled by Bankrate available at http://www.bankrate.com/finance/banking/banks-have-the-most-atms-1.aspx
***Analysis by SNL Financial and CNN Money. http://money.cnn.com/2016/01/14/investing/atm-overdraft-fees/
*According to the 2016 Bankrate Checking Account Survey http://www.bankrate.com/finance/checking/2016-checking-account-survey-1.aspx
Henson Consulting (For MemoryBank)
Kelley Fitzgibbons, 312-374-8574