Business Checking Accounts Experience 10.3 Percent Jump in Fees
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Moebs Survey Finds Annual Increase in Median Price of Overdraft to $28 from $25 CHICAGO--(Business Wire)-- Businesses saw a sharp increase in their checking account fees this year, according to national survey results just released from Moebs Services, an economic research firm in Lake Bluff, Ill. The national median for business checking account overdrafts was up $3 to $28, from $25 last year, the same for NSF or returned checks, and most other fees. The fee increase was led by Wall Street banks, those with more than $500 billion in assets, which charged $35 per overdraft, according to CEO Mike Moebs. More than 2000 banks and credit unions were surveyed about their business checking accounts in the study. Among those surveyed, 94.3 percent of banks and 27.8 percent of credit unions offer business checking and 40.9 percent of financial institutions offer a "free" business account. "This is up from last year for all institutions, as large banks try to protect loss of business, especially small business, and community banks and credit unions try to take as much market share as they can get," says Moebs. Evidence of a potential market move is reflected in the minimum balance to avoid a fee, with the large banks almost doubling from $1,250 in 2008 to $2,250 in 2009, while community banks and credit unions stayed the same at $1,000 and $500 respectively. "Main Street institutions definitely offer a better pricing deal than the big Wall Street banks," says Moebs. "In these hard economic times, businesses should seek the better deal." However, the Wall Street banks substantially increased the use of account analysis in the past year. Account analysis is like a cash management review, which is useful for businesses of all types. The survey found that 92 percent of Wall Street banks offer account analysis while only 66.3 percent of community banks and credit unions do. "Businesses need greater transparency from their banks to run their operations, so financial institutions offering account analysis to their business clients will win," says Moebs. There are over 27 million businesses in the US, with only 10,000 listed on Wall Street and the exchanges. Small business produces 65 percent of all US jobs. Financial institutions charged businesses about $9 billion in service charges on deposits in 2008, according to estimates by Moebs Services. For Moebs Services Kim Kellogg/Mara Tyler 510-635-4150 (office) 510-325-3195 (mobile) Copyright Business Wire 2009
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