| The average online checking account costs 47 percent less than its branch-based counterpart, while the average online savings account pays 457 percent more interest than the branch alternative, according to WalletHub’s latest Banking Landscape Report.
The study shows that the average annual percentage yield of an online checking account is .42 percent, compared to .34 percent for a traditional checking account. The average monthly fee of an online checking account is $2.94, compared to $6.73 for a traditional checking account, and the average minimum-balance to avoid a monthly fee is $1,201 for online accounts, compared to $4,320 in traditional accounts, according to the study.
WalletHub also found that 65 percent of online-only checking accounts do not charge a monthly fee, up from 60 percent last year. And almost 40 percent of online checking accounts are interest-bearing, compared to just 26 percent of traditional checking accounts.
WalletHub also conducted a nationally representative online survey, which shows 62 percent of people don’t realize that online-only accounts offer better rates and lower fees. However, half of respondents in the survey said they haven’t switched to an online-only account because they like to going to a branch.
