“I”™d rather fight than switch” was the advertising campaign in the 1960s for a brand of cigarettes named Tareyton.
Today, more consumers are fuming over extra fees and would rather switch than fight when it comes to paying more in bank checking fees.
More than 70 percent said they move their checking accounts rather than pay a fare increase. That was one of the findings in the latest poll done by Princeton Survey Research Associates International for Bankrate.com.
The monthly Financial Security Index found that just 28 percent would tolerate any increase.
“With restrictions on overdraft fees and a proposed cap on debit card swipe fees, financial institutions need to recover that revenue elsewhere,” Greg McBride, senior financial analyst at Bankrate, said in a statement. “As a result, they”™re re-evaluating everything from debit card reward programs to free checking accounts, and anything that was once free is now fair game.”
The survey found of those making between $50,000 and $75,000 a year, 73 percent would consider moving their account to another bank. Three-quarters of those earning above $75,000 said they would switch.
Of those earning $30,000 per year or less, 60 percent reported they would consider changing.
The survey, which had a margin of error of plus or minus 3.7 percentage points, found that seniors were the most loyal among bank customers, with slightly less than half saying they would find another bank if fees were to rise. The most likely reason for that, according to a financial executive, is that they have a one-on-one personal connection.
“They do go into the branch and usually have a person they talk to every time they go there, and so they”™re connected to that financial institution,” said Marty Mosby, managing director at investment firm Guggenheim Partners.
Generation Y, as a whole, showed no loyalty to a bank; 71 percent said they would switch. One reason suggested for the overall lack of customer loyalty is the younger group”™s use of the Internet and online banking.
In September, the American Bankers Association (ABA) reported that 36 percent of bank customers prefer online banking compared with other means. In 2009, 25 percent of customers preferred online banking.
The survey by the ABA showed that the popularity of online banking was not exclusive to the younger customers; it was the preferred method for all customers under the age of 55. Those over 55 still prefer to visit their branch.
