MarketWatch Guides Consumer Banking Survey (original) (raw)

Banking Habits

Three out of four respondents in our consumer banking survey said they preferred to bank digitally, whether through a mobile app or online. Mobile banking was the most popular option — almost 41% of the people we polled preferred it. The next most popular banking method was online banking, which 33.5% of respondents preferred.

Still, in-person banking was preferred by a significant 25.5% of respondents. “Even though I can carry out transactions online, I prefer to go to my local branch,” one survey respondent said.

“They recently solved a minor problem in a matter of minutes. They make sure they make eye contact and address you by your name always.”

Nearly 75% of those surveyed prefer mobile and online banking over in-person banking.

There seems to be a trend within younger generations returning to in-person banking, perhaps for the personalized experience it can provide, our research suggests. The J.D. Power 2023 U.S. Retail Banking Satisfaction Study found that customers under 40 were almost twice as likely as customers over 40 to expect to visit a bank branch more often within the next year.

In our research, while roughly 19% of Gen Xers (a generation currently in their 40s and 50s) reported preferring in-person banking, almost 25% of Gen Zers (preteens to those in their late 20s) preferred to bank in person, which could be surprising for a generation largely raised on technology.

The majority of those who visit bank branches do so monthly or once every few months, according to our survey. The survey also found that the top reason among all respondents for visiting a branch location was making deposits and withdrawals. One in 10 survey respondents said they never visit a bank, preferring to do all of their banking digitally.

Mobile Banking Apps and Online Banking

Many survey respondents commented on how easy their mobile banking apps were to use. Others noted how easily they could access their account balances and deposit checks with their banks’ mobile apps.

Digital customers also mentioned how much they appreciated well-designed apps. One person said his favorite part of his bank was the ability to do nearly any transaction through its mobile and online platforms in real time.

For those who bank online, it was slightly more common for them to access their accounts daily (42.1%), followed by weekly (41.3%). Survey respondents who preferred mobile banking said they were much more likely to access their accounts every day (40.3%) rather than weekly (28.8%).

I had to use my bank's app to transfer some money from my savings account to my checking account and it was really easy and simple to do on the app.

MarketWatch Guides banking survey respondent

Banking customers tend to be much more satisfied with national banks’ mobile apps than with regional banks’ apps, according to the J.D. Power 2023 U.S. Banking Mobile App Satisfaction Study.

Primary Bank

Our survey shows people are incredibly loyal to their banks. The average respondent said they have been a customer at their primary bank for 13.4 years. The top three reasons people gave for considering a financial institution their “primary bank” were that it’s the one they’ve been with the longest, it’s where they receive their direct deposits or it’s where they make recurring payments.

Some institutions offer generous bank bonuses for opening new accounts in hopes of enticing long-term customers. However, while there may be tempting bonuses or higher interest rates elsewhere, 61.7% of the people we surveyed hadn’t considered switching banks in the past year.

We found that, in general, customers are satisfied with their banks.

Joint Accounts

Just under half of all survey respondents said they share a bank account. Unsurprisingly, 81.5% of married people said they share an account. (Read why that may contribute to a happy marriage.) Just over 22% of single respondents said they share a bank account with someone. The lowest percentage of those sharing an account were divorced people, at just 11.9%.

Multiple Banks

While over 40% of respondents indicated they only bank with one institution, the average number of financial institutions across our survey was 1.8. The top two reasons they gave for holding another account were to take advantage of different features and services and to support savings goals. The third most common reason was to get better interest rates.

A 2023 J.D. Power study found that in the previous year, 30% of customers who had a primary bank moved money to a secondary bank. The report also found that they moved an average of 37% of their deposits, likely taking advantage of climbing interest rates in high-yield savings accounts.

Checking Accounts

In our survey, respondents said they had an average balance of $11,195.38 in their checking accounts. Having low or no monthly fees was by far the most significant checking account feature for those we polled, with nearly three out of four respondents indicating this feature was important. The second most important feature they noted was access to free ATMs. The third, at 45% of all respondents, was having low or no overdraft fees.

Over 73% of respondents said they don’t pay a monthly checking fee — 45.9% of them because there’s no fee for their account, and 27.4% because they meet requirements to get the fee waived. Just over 13% of respondents reported paying between 5and5 and 5and20 in monthly checking account fees. (Maybe they should look into our list of the best free checking accounts.)

How People Access Their Money

Roughly 88% of respondents said they use ATMs, but cash is no longer king. The most common ATM usage was just one to three times per month, followed by fewer than 10 times per year.

People are still writing checks, though, with 51.2% indicating they write personal checks. But it’s clear that money-transfer apps are popular — 94.2% use some form of money-transfer app or service. The most popular app in our survey was PayPal, which 72.9% of respondents said they use. Also popular among the people in our poll were Cash App (45.7%) and Venmo (34.9%).

Savings and Money Market Accounts

About 52.5% of respondents said they have a savings account with a traditional bank, just under 29.7% use an online bank for storing their savings and 16.6% said they keep their savings at a credit union. The average balance respondents said they have in their savings and money market accounts was ∗∗23,773.33∗∗.Thatgavethemanaveragecombinedbalanceof∗∗23,773.33. That gave them an average combined balance of ∗∗23,773.33∗∗.Thatgavethemanaveragecombinedbalanceof∗∗34,968.71 across their checking, savings and money market accounts.

The Federal Reserve reported that Americans held an average balance of $62,500 in transaction accounts in 2022. This category includes checking, savings, money market and call accounts, along with prepaid debit cards.

19% of those surveyed earn less than 1% interest on their savings or money market accounts.

Savings Account Interest Rates

While you might think the interest rate would be the most important factor for choosing a new savings account, our survey found that it was actually fees. Of all respondents, around 68.5% indicated low or no monthly fees mattered the most, followed by nearly 47.7% who chose an account’s interest rate.

Despite the fact that many high-yield savings accounts (HYSAs) offer interest rates north of 4% or even 5% as of March 2024, over 60% of people in our survey earn less than 3% interest on their savings or money market accounts. About 5% earn no interest at all.

Over 55% of our respondents said they’d consider switching to an online bank for a better rate. Roughly 52.8% of those who wouldn’t switch said they’re comfortable with their current bank.

Certificates of Deposit (CDs)

Over 46% of survey respondents said they have a CD or have had one in the past. The average amount held in a CD was $42,176.97. The biggest reason they cited for opening a CD was earning high interest rates, followed narrowly by saving for long-term goals. Among respondents who did not have a CD, the most common reason was that they didn’t know what a CD was.

Customer Service

When rating their bank’s customer service, customers were pleased overall. About 50.1% ranked their bank’s customer service as excellent, and 33.5% ranked it very good. Just 1.2% of customers indicated their bank’s customer service was poor.

Customers’ Experiences With Their Banks

Our survey allowed respondents to share an open-ended positive customer service experience about their bank. Their answers show the important relationships banks have with their customers. One person shared that her bank helped her save so she “could give each grandchild $1,000 on graduation.” Another said, “I got my deposit early, which helped me buy groceries for Thanksgiving.”

For those who bank in person, the relationship with their tellers is a key part of their satisfaction. “The lady at my bank is always friendly and like family,” one person said.

They greet you by name when you walk in.

MarketWatch Guides banking survey respondent

Another common positive experience involved the security their bank provided, such as catching unauthorized transactions, replacing credit or debit cards, or reversing fraudulent charges. “They detected fraud before I did on my account,” one person recounted.

Another respondent wrote about contacting their bank for help with a fraudulent transaction. “I had a company charge me for something I didn’t order, and the amount was over $700,” they said. “I called to get it straightened out, and they immediately refunded my money and then did the investigation.”

Improvements Customers Want

Many respondents had no suggestions to improve their bank, but for those who did, common themes included upgrading technology, raising interest rates and reducing fees.

“Remove the monthly service fee,” one respondent commented. “I do not make a lot of money, and every month it puts me in the negatives, and then if I’m unable to fix it in time, I get a $30 overdraft fee.”

Many in-person banking customers noted the dwindling number of physical branches and reduced staff and service hours.

Frequently Asked Questions About Bank Accounts

Several banks currently offer annual percentage yields (APYs) of over 5%. Many online-only banks offer the highest savings yields since they don’t have the same expenses as regional or national brick-and-mortar banks. Check out our top recommendations for high-yield savings accounts for more information.

The banks that offer low or no monthly checking fees tend to be online-only. However, many regional and national banks, such as TD Bank and Bank of America, will waive monthly checking fees if you maintain a minimum monthly balance or receive direct deposit funds in your account.

To choose the best bank for your checking and savings accounts, consider the bank’s monthly fees and typical APYs for both accounts, as well as benefits such as Zelle, sign-up bonuses, debit card rewards and budgeting tools. Here are our expert picks for the best online banks.

*Data accurate at time of publication