Bankrate.com Releases
Fall 2005 Checking Study

NEW YORK, Dec. 1, 2005/PRNewswire-FirstCall/ -- Bankrate, Inc. (Nasdaq: RATE) announced today that it has released its Fall 2005 Checking Study. The research gathered by Bankrate.com shows these significant trends in ATM fees, bounced check fees and interest-bearing checking accounts:

* The cost for using the "wrong" ATM -- one owned by a bank where you don't have an account -- hit an all-time record. You'll be hit twice for a single withdrawal -- once by that other bank's ATM fee and once by your own bank, for a total average fee of $2.91.

* Bankrate.com estimates that American consumers will pay more than $4.3 billion in withdrawal fees during 2005 for using someone else's ATMs.

* Bounced check fees have gotten sneakier. While the average insufficient funds fee fell a few cents, from $27.13 to $26.90, Bankrate found more banks are instituting "tiered" fees that ramp up the more often you bounce a check or leave a check uncovered. Even at $26.90, the bounced check fee remains the second-highest recorded since Bankrate began surveying checking accounts in 1998.

* Interest-bearing checking accounts remain an unattractive option, where you have to pay considerably more to open an account and avoid fees, in return earning a pittance in interest.

"Making two withdrawals each week from another bank's ATM is throwing away more than $300 per year," said Greg McBride, Senior Financial Analyst at Bankrate.com. "With bank fees rising, consumers need to be more diligent in researching the best options for their money. The information provided in our checking study, in tandem with our rate tables and advice, helps consumers make the best choices for their banking needs," McBride added.

The study also offers consumer advice on finding the best checking account options. For example:

* Look for a checking account without a balance requirement.

* Move any excess money from your account into a higher-yielding savings or money market account.

* Don't settle for lower fees and balance requirements when what you really want is NO fees and balance requirements.

Bankrate's semiannual study surveys 458 accounts from the leading banks and thrifts in each of the 25 largest markets to find the latest trends on checking accounts and ATM fees. The study also compares checking accounts offered by online banks.

Bankrate's Checking Study is an extension of its Web site's checking and savings channel, which provides consumers with access to savings account interest rate tables, award-winning editorial content and savings calculators.

The key findings of the study are:

Average Yield: Interest rates are rising, but you probably haven't noticed from watching your checking account. The average yield on an interest checking account is 0.31 percent; up only slightly form the record low of 0.27 percent two years ago. The prime rate has gone up from 1 percent to 4 percent in that same period.

Minimum to Open and Earn Interest: The average minimum deposit required to open an interest checking account and earn interest is nearly $450, consistent with the findings over the past four years.

Minimum to Open a Non-Interest Account: The average minimum deposit required to open a non-interest account is just $72.56, virtually unchanged from the spring survey.

Minimum Balance Required to Avoid Fees - Interest Account: The average balance required to avoid fees on an interest account is an onerous $2,294, just $1 lower than the average in the prior study, and the sixth consecutive time the average has exceeded $2,000.

Minimum Balance Required to Avoid Fees - Non-interest Account: The average balance required to avoid fees on a non-interest account is a reasonable $267.78, down from $301.47 in Spring 2005.

Monthly Service Fee - Interest Account: The average monthly service fee on an interest checking account is $10.81, down slightly from $11.08 in spring 2005, but still the third highest ever recorded. Worth noting is that since the fall 2003 survey, the monthly service fee no longer includes the cost of canceled checks or image statements, and this tends to understate the average fee relative to periods prior to the switch.

Monthly Service Fee - Non-interest Account: The average monthly service fee on non-interest accounts has always been a fraction of that seen on interest accounts. The current average of $3.00 is the lowest seen in previous editions of the survey, though since fall 2003 the monthly service fee does not include the cost of canceled checks or image statements. This tends to understate the average relative to periods before that change, but the declining trend was well established even then.

Bounced Check Fee: The average bounced check fee dipped slightly to $26.90, but is still the second highest ever recorded. How rare an event is a decline? It is just the second occurrence in 15 editions of the survey.

Online Access: The availability of online access, which has crept slowly higher from 95 percent of the accounts in early 2003, is now applicable to nearly 98 percent of accounts.

ATM Surcharge: The average fee assessed by banks to non-account holders using their ATMs jumped from $1.40 to $1.54 since the spring survey. Of the banks that own ATMs, 82 percent charge $1.50 or more to non-accountholders, compared to 71 percent in the spring.

Percent of Bank-Owned ATMs with Surcharges: The percentage of banks with ATMs that assess surcharges hit a record high of 96 percent, eclipsing the previous record of 95 percent in spring 2002. To put it bluntly, if you use another bank's ATM, expect them to charge for the privilege.

Fee to Use Another Bank's ATM: Of course, surcharges are only half the battle against fees when using someone else's ATM. Equally important is the fee charged by your own bank for using another bank's ATM, which also hit a record high. The current average is $1.37. Of banks offering ATM cards, 69 percent charge $1.50 or more, up from 64 percent in the spring.

Annualized Cost of ATM Transaction Fees: With the average fee rising and the prevalence of ATM fees increasing, it is no surprise that the total cost to American consumers is also at a new high. Using General Accounting Office data on the number of ATMs and transaction volume, Bankrate.com estimates that withdrawals from ATMs belonging to other banks will cost a total of $4.3 billion in 2005.

INTERNET BANKS

Minimum to Open: Both interest and non-interest checking accounts can be opened for similar amounts, whether at internet banks or traditional brick- and-mortar banks. The amount required to open the account and earn interest is $504.73 at internet banks and $449.53 at brick-and-mortar banks. On non- interest accounts, there is scant difference with internet banks requiring a minimum initial deposit of $71.71 and brick-and-mortar banks requiring $72.56. Because of the limited number of non-interest accounts offered by online banks, the focus of comparison will be on interest checking accounts.

Average Yield: Internet banks have long offered much higher yields on interest checking accounts than their traditional brick-and-mortar counterparts. The average yield at internet banks is 1.7 percent, dwarfing the 0.31 percent at brick-and-mortar banks.

Minimum to Avoid Fees: Internet banks may offer much higher yields, but avoiding fees still means keeping a high balance. The average balance requirement on interest checking accounts at internet banks is $2,454.55 and is comparable to the $2,294.61 required at traditional banks.

Monthly Service Fee: The average monthly service fee on interest checking accounts at internet banks is $6.05. While this is lower than the average of $10.81 at brick-and -mortar banks, one such fee is still enough to wipe out more than two months of interest on a $2,000 balance.

Bounced Check Fee: Online or offline, bouncing a check will cost you. At internet banks, the first bounced check will set you back $25.72, compared to $26.90 at traditional banks.

For complete study results, go to http://www.bankrate.com/checkingstudy.

About Bankrate, Inc.
Bankrate, Inc. (Nasdaq: RATE) owns and operates Bankrate.com, a leading Internet consumer banking marketplace. Bankrate.com is a destination site of personal finance channels, including banking, investing, taxes, debt management and college finance. It is the leading aggregator of more than 300 financial products, including mortgages, credit cards, new and used auto loans, money market accounts and CDs, checking and ATM fees, home equity loans and online banking fees. Bankrate.com reviews more than 4,800 financial institutions in 575 markets in 50 states. In 2004, Bankrate.com had over 38 million unique visitors. Bankrate.com provides financial applications and information to a network of more than 75 partners, including Yahoo! (Nasdaq: YHOO), America Online (NYSE: TWX), The Wall Street Journal (NYSE: DJ) and The New York Times (NYSE: NYT). Bankrate.com's information is also distributed through more than 150 national and state publications.

SOURCE: Bankrate, Inc. - http://phx.corporate-ir.net/phoenix.zhtml?c=61502&p=irol-news
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