Are the mega-banks hiding the truth about free checking?
If free checking isn’t profitable, then how do you explain the free checking accounts being offered by Ally Bank and ING Direct?
Of course, neither online bank calls its free checking account free checking.
Actually, it appears free checking can be very profitable – just not for the mega-banks with their extremely costly branch networks.
Free checking is also available from another familiar online bank – USAA. Fortunately, this bank made the wise decision to name it’s free checking account free checking.
As for the free checking profitability issue, in reality, the big banks are simply trying to allocate millions – if not billions – of dollars in branch costs onto the checking account customers they’ve successfully driven from the branches.
Read more: ACTON Marketing