Stop The Bleeding From Free Checking With


Free Checking loses $186/account per year on average for the typical financial institution.  With fee income declining and concerns that non-accruals and loan losses may be rising, many community financial institutions are taking a hard look at fee income opportunities.  Strunk’s Value Checking program can help you significantly improve your bottom line and increase customer satisfaction.  Let us show you how.

Increase Fee Income $40/Account 

Pro FormaFree CheckingValue Checking
Median Average Balance$2500$2500
Interest Income$29.00$29.00
Total Revenue$134.85$196.25
Enhancement Cost$21.00
Operating Expense$321.81$321.81
Pre-Tax Income/Account($186.96)($146.56)
5-Year Impact/10,000 Accounts$2.0 Million

*Assumes 20% of Value Checking accounts fall back to Free Checking


The bank is very pleased with the program, including the strategy, implementation, training, marketing and com- munications support that were provided. Most important, with the Value Checking account, fee income has increased by $432K annually.

We used Value Checking to implement a new fee-based checking strategy. Our employees and consumers love it – and believe it’s the best service we’ve provided in the past ten years.

Our credit union used Value Checking as a cornerstone in our new strategy of monthly membership dues. Now more members are taking advantage of more services, which results in more income for us. We’ve even been able to offer bonus dividends to our members!

The Value Checking program has strengthened our credit union financially, with fee income up about $7,000 per month!


  • Significant, differentiating enhancement to your core checking product
  • Pre-Tax income increases by $40 per year per account
  • FI income increases by $2.0 million per 10,000 accounts over five years
  • Your consumers still receive your high quality services for less than it costs you to provide them

10 Advantages Of Value Checking

1 Reverse Declining Checking Profitability:

Free checking accounts that were popular in the past have become very unprofitable for financial institutions. Two decades ago, all a consumer received with a free checking account was a debit card, statement, and access to their funds. Now, bill pay, online banking, mobile banking, and other costly services have been added to the typical account with no corresponding income to support it.

2 Offset Lower Overdraft Fee Income:

Fee income from overdrafts has dropped dramatically due to regulatory changes that all financial institutions must abide by. Changes to Regulation E in July, 2010 caused a drop in fee income of 20%- 30%.

3 Counter Shrinking Margins and Higher Capital Requirements:

Net interest margins have been narrow and are declining. Loan demand has also been soft. Increased capital requirements continue to phase in through 2019. As a result, fee income is even more critical. For commercial account analysis consumers the situation will worsen as interest rates rise.

4 Compensate For Declining Debit Interchange:

The Durbin Amendment to Dodd-Frank has curtailed debit card revenue and strategies to increase profitability by driving increased consumer debit usage have become less effective.

5 Protect Consumers From Credit Report Errors:

More than 40 million people in the U.S. have incorrect credit scores that negatively affect borrowing rates on mortgage loans, installment loans and credit cards.

6 Combat Identity Theft:

Javelin Research identifies identity theft as the fastest growing crime in the U.S. Recent studies show that consumers are willing to pay for identity theft alerts and credit score monitoring.

7 It’s A Product Consumers Want and Need:

Giving con- sumers something they want and need is key to maintaining and growing relationships. Your best relationships receive benefits for free. The bulk of accounts pay a fee for the service. Those who don’t want to pay a fee accept a lower cost account with few features.

8 Bolster Data Security:

As banking becomes more mobile the threat of identity theft increases. Likewise, as medical records become electronic with the advent of the Affordable Care Act, it is more likely someone will become a victim of med- ical fraud.

9 Differentiate Your Institution:

A recent Market Rates Insight study shows that community FIs have overlooked numerous high demand products that could help differentiate them from their competition and generate a lot of fee income.

10 Compensate For Increased Regulation:

More regula- tion equates to more expense for community financial institutions. Higher capital standards are around the corner. Tougher regulations on home lending and insurance products will make it more difficult to make loans and generate income.

Let Strunk help stop the free checking bleeding.

Email Or Call (877) 485-8808 For Your Free Assessment