Want free checking? Try a credit union

credit union banks checking
The majority of America's biggest credit unions still boast free checking.

If you're looking for a free checking account, a credit union is probably your best bet.

More than two-thirds, or 72%, of the nation's 50 biggest credit unions still offer free checking accounts without minimum balance or direct deposit requirements, compared to only 39% of banks, according to a new survey from Bankrate.com.

While free checking has declined across the board, it has disappeared more rapidly at the banks -- with 65% of banks and 78% of credit unions offering free checking in 2010.

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"While banks have significantly scaled back free checking accounts, free checking remains the rule, rather than the exception, among credit unions," said Greg McBride, senior financial analyst at Bankrate.

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Many banks have been adding fees to checking accounts in recent years as new regulations -- like the 2010 Card Act, which limited fees and interest rates issuers can charge certain customers -- forced them to find alternative revenue streams.

There are usually ways for customers to avoid monthly fees, however, like carrying a minimum amount of money in an account or setting up direct deposits. A total of 96% of credit unions and 95% of banks have checking accounts that allow you to avoid a monthly fee by meeting certain requirements.

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Monthly checking account fees range from $1 to $10 at credit unions, and the most common are $2 and $5. Checking accounts at banks come with an average fee of $5.48.

ATM fees are also higher at banks. The average fee for a non-customer to use a credit union's ATM is $2.29, compared to $2.50 at banks. Meanwhile, using an out-of-network ATM costs a credit union customer $1.01 and costs a bank customer $1.57.

Charges for overdrawing your checking account, known as overdraft fees, average $26.74 at credit unions and $31.26 at banks.

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