Banks increase fees: Customers may consider switching banks

Banks increase fees: Customers may consider switching banks

More and more banks are increasing their fees, which primarily affects customers of a particular bank. According to a representative survey by the comparison portal Verivox, around half of those surveyed had their current account fees increased in the last two years. Of the 1,025 respondents, 82 percent pay fees on their checking account, with 49 percent of this group having experienced an increase in the last two years. Some customers reported price increases within the last year or fee adjustments up to two years ago.

Savings bank customers are particularly affected by the fee increases, as they rarely enjoy the advantage of a low-cost or free account. Savings bank and Volksbank customers were also affected by changes to withdrawals. The differences in checking account costs are significant. Although almost half of those surveyed have either a free or low-cost account with annual fees of less than 50 euros, only 30 percent of savings bank customers have such an account. At cooperative banks such as Volksbanken Raiffeisenbanken, 33 percent of customers pay less than 50 euros per year, and 9 percent even have a free account.

The rising costs at savings banks and Volksbanks are caused by the high operating costs for a nationwide branch network. These costs are passed on to customers through higher account fees. Customers, especially in rural regions, who value personal banking advice often have no alternative to regional credit institutions and therefore accept higher account costs. Verivox managing director Maier recommends that customers who pay attention to low account management fees monitor the costs of card transactions and cash withdrawals. It is advisable to consider changing banks if the account costs are over 50 euros annually and a cheaper account offer is available elsewhere.