Bankrate's 2025 Checking Account Survey has found that the average overdraft fee currently stands at $26.77. The report notes that many banks now offer fee-free options, with institutions like Citibank and Bank of America having taken steps to eliminate or reduce these charges.
Consumers looking to open accounts are advised to first identify their primary banking needs, which may include checking, savings, certificates of deposit, or specialized services. The survey suggests avoiding banks with excessive fees and considering various institution types.
Traditional banks, online banks, and credit unions each present different features. Online banks and credit unions may provide better rates and lower fees to members, according to the findings. Online banks are noted for their low fees due to lower operating costs from having few physical branches.
For checking accounts, traditional banks offer multiple options, while some credit unions and online banks provide high-yield checking accounts that allow everyday money to earn interest. Savings seekers might consider high-yield savings accounts, which typically pay higher annual percentage yields than traditional brick-and-mortar banks. While the average savings account APY is currently 0.62 percent, top online banks pay 4 percent APY and higher.
Certificates of deposit offer another way to earn guaranteed interest by locking up money for set periods, though early withdrawal penalties apply. Money market accounts, similar to savings accounts, may have check-writing privileges and debit cards but often require higher minimum balances.
The report includes a comparison of institution types. National banks offer wide product ranges and branch networks but may have higher fees. Community or regional banks provide high-quality customer service and lower fees but have limited branches. Credit unions feature lower fees and higher savings rates but require membership eligibility. Online banks offer lower fees and higher rates but lack physical branches.
Bankrate reviews hundreds of banks based on factors including APYs, fees, digital experience, and customer service. The survey recommends that consumers review account agreements for fee disclosures and consider managing accounts at multiple institutions if one bank cannot meet all needs.