As national and regional banks around the country continue to eliminate low-cost banking services such as free checking and free debit cards, many consumers are concerned about the availability of these services. In light of news stories touting the “death of free checking” we wanted to address this issue clearly for all of our customers and other consumers who are considering Arvest Bank. We will continue offering a free checking account, a free debit card and will continue to have the lowest overdraft fees in the region. Below is the official press release confirming this announcement.
Arvest Announces Future of Free Checking, Debit Card
Overdraft/NSF Fee on Free Checking, Already Among Lowest in U.S., To Be Lowered Further
(October 3, 2011)—As free checking, free debit cards and debit card rewards are on the chopping block at banks across the country, Arvest Bank announced today its commitment to providing a feature-rich free checking account with a free debit card, free online and mobile banking, and a debit card rewards program. Additionally, Arvest Bank – known for having some of the lowest overdraft/nsf fees in the nation – is bucking another national trend by actually lowering overdraft/nsf fees for its Free Checking account.
With a national average of $27.00¹ for overdraft/nsf fees, Arvest has one of the lowest in the country at $17.43 for free checking accounts. However, as of Monday, November 7, 2011, the bank is implementing a flat fee of $17 for all accounts. Arvest officials confirmed they will continue to offer a very attractive free checking account and will continue to have the lowest overdraft fees in the region. When you combine the value of our free checking account with our extended hours and extensive branch network, Arvest will offer customers the best overall value of any bank in the nation.
Increasing overdraft fees is only one trend making national banking headlines. New federal price controls impose a cap on debit card swipe fees, also known as the interchange rate, which has many banks eliminating free checking and debit rewards to make up the lost revenue. According to research firm Moebs Services, nearly two thirds of big banks have eliminated free checking since the end of 2009.²
Arvest is defying the trend by maintaining a free checking account with a free debit card. This type of no minimum balance, no monthly fee account not only serves the interest of current Arvest free checking account holders, but also provides an alternative for consumers whose bank may have recently added fees to basic accounts. Barring future regulatory changes, Arvest is committed to providing these free services to consumers.
In addition, several national and regional banks are testing monthly fees for the convenience of using debit cards, the most popular form of payment in the US. To that end, many banks have eliminated debit rewards or ended new enrollments in their programs. Arvest is committed to keeping the use of debit cards free and to continuing to provide access to their successful debit rewards program.
1. Source: FDIC
2. Aspan, Maria. "American Banker 29 Aug. 2011. American Banker: The Financial Services Daily.