Bank fees rise for checking, ATMs; fewer credit unions offer free accounts

Checking and ATM fees are rising at the nation's banks, and fewer credit unions are offering free accounts, two new studies show. MoneyRates.com's semi-annual bank fees survey found that, by nearly every measure, the fee environment for consumers has worsened since the end of 2011.

The average minimum checking-account balance needed to avoid a monthly service fee jumped by $856, to $4,447. Overdraft fees jumped to an average of $29.83, up from $29.23, said the data provider about bank rates, personal finance and savings accounts. Among banks that charge a monthly fee, the average cost was $12.08, up from $11.28. ATM fees also rose.

"This is the most comprehensive rising fee trend we've seen in one of our checking account surveys," Richard Barrington, MoneyRates.com senior financial analyst, said in a statement. Typically, credit unions have been a haven for fee-sensitive consumers, but the ranks of those offering free checking is shrinking, according to a Bankrate.com study, also released Monday.

Seventy-two percent of the nation's 50 biggest credit unions offer free checking accounts with no minimum balance required, down from 76 percent last year, Bankrate.com said. Read more>>

Survey: More Than 25% of Americans Have No Emergency Savings

While nearly half of Americans don't have enough money saved to cover emergencies, one-quarter don't have any money saved, according to Bankrate.com's Financial Security Index survey. The general rule of thumb is to have enough cash saved to cover at least six months of expenses.

However, only 25 percent of Americans have saved that amount and 17 percent have three to five months' expenses saved, while 28 percent have no emergency savings and 21 percent have less than three months' expenses saved. Those earning more than $75,000 annually have higher odds of saving six months of expenses. Only 9 percent of these high earners don't have emergency savings versus 52 percent of those earning less than $30,000.

Among retirees, 41 percent have enough money saved to cover at least six months' expenses, while 26 percent have less than six months' expenses saved and 18 percent have no savings. In addition, 41 percent of college graduates report having emergency savings compared with 14 percent of those with a high school education. According to race, 23 percent of white Americans have no emergency savings compared with 38 percent of nonwhite individuals. Read more >> 

Most Americans Are Flat Broke

Most Americans don't have nearly enough money stashed away for emergencies and more than one-in-four don't even have a single penny saved. While the general rule of thumb is to have an emergency fund that will cover at least six months of expenses, only 25% of Americans have that amount saved, research released Monday by Bankrate.com finds.

About 49% of Americans don't even have enough money saved to cover three months of expenses -- slightly worse than the 46% of Americans who reported having less than three months worth of savings last year. And 28% don't have any cushion whatsoever -- up from 24% last year, according to the report, which was based on a survey of 1,000 adults. "Incomes are largely stagnant, so it's difficult for people to make significant headway on savings when household expenses are creeping higher but incomes are not," said Greg McBride, senior financial analyst for Bankrate.com.

"Prolonged unemployment has also depleted the savings of many people who at one time had a more appropriate cushion." Read more >>