By After a price increase by Credit Unions in the first part of 2013, overdraft prices stabilized for all depositories according to the January 2-10, 2014 overdraft survey by Moebs Services, an economic research firm located in Lake Bluff, IL. "There were slight increases by a few banks and thrifts in the past several years," says Michael Moebs, Economist and CEO of Moebs Services, "but nothing of significance for these two groups in 2013."
| Overdraft Price | ||||||
Type of |
Median |
Median | ||||
| Banks | $30.00 | $30.00 | ||||
| Thrifts | $30.00 | $30.00 | ||||
| Credit Union | $28.00 | $28.00 | ||||
| Source: Moebs Survey January 2-10, 2014 of 2,890 Banks, Thrifts & Credit Unions. | ||||||
Best Place to Have a Checking Account? Community Bank or Credit Unions
Wall Street Banks, with greater than $50 Billion in assets, still have high overdraft fees at $35 while "the large Credit Unions, mainly over $5 Billion in asset size, have a median price for overdrafts of $25, or 29% lower than their big bank competitors." Notes Mike Moebs, "the best place to have your checking account to avoid high fees is at a Community Bank or Credit Union. If you are a consumer or small business who doesn't have time to monitor your checking account closely, then go to a Main Street financial institution to keep the fee charges down."
| Overdraft Price by Size | |||
Asset Size of |
Median | ||
| >$50 Billion(B) | $35 | ||
| $25B - $50B | $3450 | ||
| $5B - $25B | $33 | ||
| $1B - $5B | $30 | ||
| $500M - $1B | $30 | ||
| $100M - $500M | $29 | ||
| <$100 Million(M) | $25 | ||
| Source: Moebs Survey, January 2-10, 2014 of 2,890 Banks, Thrifts & Credit Unions | |||
Best to Live in the West in a Large City or the Country
According to the Moebs Study, overdraft fee prices are lowest in the West. "The South has been leading with pricing increases the past two years," comments Moebs, "but now the rest of the regions in the country are catching up."
Specific geographic markets reflect somewhat the same changes. Large cities and rural/ country markets have lower fees than suburban and small city markets. "Two or more years ago, large city markets were the first to reflect price changes," observes Moebs. "Now, we find more suburban markets and small city markets increasing prices first. However, the rural markets are definitely still the last to change price."
Overdraft Price | |||
Type of |
Median | ||
| Large Cities | $29.00 | ||
| Suburban | $30.00 | ||
| Small Cities | $30.00 | ||
| Rural | $29.00 | ||
| Source: Moebs Survey, January 2-10, 2014 of 2,890 Banks, Thrifts & Credit Unions | |||
Overdraft Price | |||
| Region |
Median | ||
| East | $30.00 | ||
| Midwest | $30.00 | ||
| South | $30.00 | ||
| West | $29.00 | ||
| Source: Moebs Survey, January 2-10, 2014 of 2,890 Banks, Thrifts & Credit Unions | |||
Winning Lowest Prices: Kansas and San Antonio
The State of Kansas has the distinction of having the lowest OD fees two years running, having taken over from California, the Moebs Study shows. San Antonio with the massive growth from the boom in oil has taken over the lowest price city from San Francisco.
To avoid high prices-- skirt the State of Delaware and Philadelphia markets which both have the highest prices in the country.
Overdraft Price | |||
| States |
Median | ||
| Delaware | $35.00 | ||
| Pennsylvania | $34.00 | ||
| Georgia | $33.00 | ||
| Minnesota | $28.50 | ||
| Washington | $28.00 | ||
| Kansas | $25.00 | ||
| Source: Moebs Survey, January 2-10, 2014 of 2,890 Banks, Thrifts & Credit Unions | |||
Overdraft Price | |||
Cities |
Median | ||
| Philadelphia | $35.00 | ||
| Atlanta | $34.00 | ||
| Tampa | $34.00 | ||
| Las Vegas | $33.50 | ||
| San Diego | $27.00 | ||
| Kansas City | $26.00 | ||
| San Francisco | $25.00 | ||
| San Antonio | $25.00 | ||
| Source: Moebs Survey, January 2-10, 2014 of 2,890 Banks, Thrifts & Credit Unions | |||
About Moebs $ervices, Inc.
Moebs Services, an independent economic research firm established in 1983, collects statistically significant, primary empirical data about financial institutions' services, pricing, operating expenses and financial condition. Data is then analyzed in a counter-intuitive manner, resulting in solutions that make sense. A special Pricing Program is being offered on February 10-12, 2014 in Palm Springs, CA. For more info please visitwww.moebs.com.
For Moebs Services
Liam Collopy, 510-635-4150
lcollopy@hardenpartners.com
