Clark Howard Bank Account Comparison

Evaluate your financial institution using the Clark Howard bank account comparison method to eliminate monthly fees, increase savings yield, and locate customer-friendly alternatives.

5 time blocks, 60 minutes in total.

Time blocks

Audit Monthly Fees and Overdraft Rules: 10 min
Review 90 days of statements for monthly fees and overdraft terms
Check Savings Yield vs National Averages: 10 min
Calculate annual returns and compare rates with online accounts
Screen Credit Unions and Online Banks: 15 min
Search creditunion.gov or top online banks for fee-free checking
Compare ATM Access and Foreign Fees: 10 min
Check out-of-network ATM rebate policies and debit card fees
Map Out the Transfer Timeline: 15 min
Inventory recurring payments and direct deposits for migration

About this routine

Consumer advocate Clark Howard consistently advises consumers to avoid major megabanks that charge monthly maintenance fees, overdraft fees, and offer negligible interest rates on savings. Applying a structured Clark Howard bank account comparison allows you to audit what you pay today and identify customer-first alternatives like credit unions and online banks.

Clark Howard highlights three main factors when choosing a financial institution: zero monthly maintenance fees, strong savings yields, and reasonable ATM access. Credit unions often provide better customer service and lower loan rates, while online banks lead the industry in savings yields and fee-free checking accounts with ATM fee rebates.

This 60 minute review guides you through auditing your current account fees, comparing online savings yields, screening regional credit unions, and drafting a step-by-step transition plan. Taking time to run this evaluation can save hundreds of dollars a year in unnecessary bank charges.

Why this routine works

Eliminates monthly maintenance fees and hidden bank charges
Identifies high-yield savings alternatives for better interest returns
Provides a structured checklist for migrating direct deposits and auto-pays

FAQ

What is Clark Howard's main advice on choosing a bank?

Clark Howard recommends avoiding big national banks with monthly maintenance fees. Instead, choose local credit unions or online banks that offer fee-free checking and high-yield savings.

Why does Clark Howard recommend credit unions over major banks?

Credit unions are member-owned non-profits that typically offer higher interest rates on deposits, lower interest rates on loans, and significantly lower fees than commercial megabanks.

How long does a full bank comparison take?

A thorough comparison takes 60 minutes using this step-by-step checklist to review statements, screen alternatives, and map out payment migration.