It’s a reality that many financial institutions are starting to face – the digital checking account boom is not as profitable as it might seem. Offering free checking accounts online may seem like an attractive entry point, but it comes at a high cost. These accounts typically attract low-balance, low-engagement customers, and while they may temporarily boost deposit numbers, they rarely generate the kind of long-term growth banks need.
So, what’s the alternative? Read more on the case for high-yield savings accounts at BankBeat.