Paying the Bank: Majority of Americans Unaware of Which Bank Services Charge Them Money

WILMINGTON, Del., May 24, 2011 /PRNewswire/ -- Fact vs. Fiction: American's struggle to distinguish "real" or "fake" bank fees and services. A survey by ING DIRECT USA, the nation's largest direct bank, revealed not one of the 1,000 consumers surveyed were able to categorize all of the bank fees correctly.

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The survey tested American's knowledge of current bank fees by choosing "real" or "fake." Only one in 20 (five percent) could correctly identify all of the "real" fees listed, and just under one in 10 (ten percent) saw through the "fake" fees. As more Americans are faced with confusing "fee" services versus "free" services, they are susceptible to unnecessary financial losses.

"Many banks continue to add-on customer costs, and the obscurity over new and existing fees has forced Americans to gamble with their bank accounts," said Arkadi Kuhlmann, President and CEO of ING DIRECT USA. "As a result, consumers are experiencing diminishing balances even when not spending money, particularly in their checking accounts. Americans can change the game by making smarter choices with their money including finding a bank that helps grow their checking and savings, not shrink it."

Fees 101: Real vs. Fake Fees

Eleven of the 20 fees surveyed were fictitious. The following are actual fees banks charge and the percentage of Americans that answered the survey incorrectly:

• Almost two-thirds (60 percent) were not able to identify the "balance fee"
• More than half (56 percent) were unable to identify the "reference letter"
• Half (50 percent) were unable to identify the "returned statement"

Of the fake fees surveyed:

• Almost two-thirds (62 percent) thought there was a fee to "edit/cancel scheduled transaction"
• More than half (56 percent) were unable to identify "mobile banking fee" as fake

The Fact on Fees

Today, checking and savings accounts increasingly come with strings attached, including monthly, minimum balance, overdraft and ATM fees. In 2010, the government began regulating banks' need for customer authorization to cover any debit-card purchases that may overdraw the account. Despite the opt-in policy, banks are predicted to make $38 billion in 2011 from overdraft fees alone – an industry high, according to Moebs Services. More than ever, consumers must familiarize themselves with the ins-and-outs of their bank accounts in order to steer clear of fees.

Fee-Free Checking: Electric Orange(SM) Checking Celebrates One-Million Customers

ING DIRECT believes banking should be transparent and aims to empower consumers to take control of their finances with simple, no hassle, fee-free products such as Electric Orange Checking. Over the past ten years, ING DIRECT has seen significant growth (35 percent) it its number of checking account customers and welcomed its one-millionth customer in May.

Fees Wrecking Your Checking? Tips to Avoid Checking Fees:

• Make Your Checking Account Work For You, Not Against You. Money emergencies happen so be sure to read the fine print of the checking account before signing up. Too many "free" checking accounts come with maintenance and monthly fees that steadily eat into account balances – even if the account holder doesn't spend a dime.

• Avoid Auto Opt-in – Don't automatically opt-in for overdraft plans. Instead, challenge yourself to live within your means and avoid over spending all together. Some checking accounts charge a $30 fee for the use of overdraft protection even if you spend as little as $1 over.  

• Know Your Balance. Pay attention to your "available balance" versus the "current balance" on your checking account. If you transfer money into your checking account, know when it will be available for use so that you don't go into the red because your deposit hasn't cleared.

• Don't Get Robbed at the ATM. Challenge yourself to find a fee-free ATM near your home and office so you never are caught without easy access to cash. And if you need to check your account balance, skip the ATM which often charges fees – instead, use your bank's mobile application or review your balance online for free.

• Make it Automatic. Set up a free automatic bill pay and savings plan to keep track of when money will be taken out of your checking account. By avoiding unscheduled payments or last minute 'late' payments, you can maintain the minimum account balance requirement and skip the fee for dipping below it.

• Make the Switch. Eliminate fees completely by switching checking accounts to a bank that is fee free. Time spent doing so will save you money in the long-term.

Survey Methodology

The national phone survey was conducted within the United States by TNS on behalf of ING DIRECT USA from February 16-20; 2011 included 1,000 adults age 18+. No estimates of theoretical sampling error can be calculated; a full methodology is available.

About ING DIRECT USA

ING DIRECT, the nation's largest direct bank and largest thrift, is dedicated to inspiring Americans to become a nation of savers. Since its inception in 2000, more than 7.6 million Americans have entrusted their savings with ING DIRECT, building the bank to nearly $91.3 billion in assets.  ING DIRECT has developed a comprehensive social media Savers Community, including Twitter, Facebook and it's We, The Savers blog.  For more information about ING DIRECT call 1-800-ING-DIRECT, and for information about its commitment to financial education visit Planet Orange.  

Style note to Editors: ING DIRECT is always capitalized and never referred to as ING.

MEDIA CONTACT:
Kendall Roy, ING DIRECT USA
302-255-3619
[email protected]

SOURCE ING DIRECT USA

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