Fifth Third Bank is expanding its Free Checking option to all of its retail markets.
The bank created the account to make banking simpler for customers.
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Fifth Third launched Free Checking last year in select markets. It is now expanding the account to all customers in its 10 states from the Midwest to the Southeast.
“We understand that our customers value a checking account that is simple and straightforward,” says Brian Lamb, head of Retail Banking for Fifth Third. “So, we created Free Checking. The account features no monthly maintenance fees and no minimum balances.
Fifth Third’s new Free Checking account includes full services at the bank’s branches. It also covers the Fifth Third mobile app and bill pay.
“Our goal is to play a meaningful role in the lives of customers to become financially empowered,” Lamb adds. “This account provides a valuable solution so we can continue to help our customers pursue their dreams.”
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By GlobalDataFifth Third ended fiscal 2019 with assets of $169bn. It operates 1,148 branches across Ohio, Kentucky, Indiana, Michigan, Illinois, Florida, Tennessee, West Virginia, Georgia and North Carolina.
US checking account fees on the rise
In the US the average monthly cost of a checking account is $5.61 for non-interest-bearing accounts. For interest bearing accounts the average monthly fee is $15 according to Bankrate.
The Bankrate 2019 checking account and ATM fees study also notes that minimum deposits for checking accounts are climbing. The average minimum needed to open a non-interest checking account has increased by about 1.4% in the past year to $162.94. The average overdraft fee is $33.36, according to Bankrate. Furthermore, the cost of using out-of-network ATMs is increasing as well. Total ATM fees, on average, are getting closer to $5 per transaction.
More than 4 in 10 non-interest-bearing accounts (42%) are considered free checking accounts, up from 38% in 2018. Meantime, the average overdraft fee increased from $21.57 in 1998 to $33.36 in 2019.
