New Dartmouth Bank narrowly beat Ledyard National Bank as the local bank that provides the best overall service package for students in a study conducted by The Dartmouth.
The survey compared annual interest rates, minimum balances for checking accounts, service fees for interest and non-interest checking accounts, service fees for Automated Teller Machine (ATM) use and the costs of printing checks.
New Dartmouth, located at 40 South Main St., does not charge for ATM use at other banks with its checking accounts. New Dartmouth covers the cost of foreign ATM use, a rare feature at a time when interest rates are low and banks are passing costs to the consumer.
New Dartmouth has 37 branch offices in New Hampshire.
"In the past, we've had the best deal in town," said Lorna Gade Watson, branch manager of New Dartmouth.
Ledyard National, located at 38 South Main St., also does not charge for ATM use at foreign banks, but does charge $2 to issue the card.
Founded in May 1991, Ledyard has only one branch office, which makes waiving a transaction fee essential.
First NH Bank, located at 43 South Main Street, charges $1 per withdrawal at foreign ATMs and has more than 70 branch offices and 100 ATMs in New Hampshire which give free service.
Fleet Bank, located at 63 South Main Street, charges $1.25 per transaction at foreign ATMs.
Fleet, with more than 800 of its own ATM locations, is the largest bank in New England, according to Hanover Branch Manager Richard Husband.
"The bulk of the student business is from New England," Husband said. Fleet Bank offers the teller banking services elsewhere in New England, an advantage for those who come from this area.
New Dartmouth and Ledyard National offer the best checking accounts for those who frequently use ATMs and do not need teller services in the entire New England area.
New Dartmouth has the lowest monthly fee for non-interest basic checking accounts with no minimum balance. It charges a standard monthly fee of $2 and charges $1 for every check written after the tenth check within the statement period.
For the same account, Ledyard National charges $3 a month. First NH customers pay $2.50 a month for a similar account and $1 for every check written over five during the statement period.
Fleet Bank offers the least attractive checking account in this category. It charges $3 a month and $1 for every transaction over 10 in the statement period, which includes checks and ATM withdrawals at its own machines.
New Dartmouth offers the lowest minimum balance for maintaining an interest-earning checking account without incurring a monthly fee for falling below the minimum.
A $500 balance is necessary at all times to avoid the monthly $5 service fee.
Ledyard National and First NH both have $750 minimum balances for interest-earning checking accounts without receiving service fees.
But Ledyard charges $7 if the average daily balance falls below $750, while First NH charges $8 if the balance drops below $750 at any time during the month.
New Dartmouth offers an interest-earning checking account with the same $500 minimum as Ledyard's non-interest earning checking account.
New Dartmouth's only drawback is that it charges a service fee if the account drops below the minimum, while Ledyard charges a service fee when the average daily balance falls below the minimum.
Fleet Bank has a $1,000 minimum for a similar account and it charges $6 a month if the balance falls below $1,000 at any time during the month.
Fleet also offers a non-interest-earning checking account which is impractical for students. It requires a $750 minimum at all times and has a $5 service charge if the account drops below the minimum.
The annual interest rate on checking accounts varies from 1.5 percent to 2 percent, according to the most recent releases of the lowest interest rate tier.
First NH yields 2.02 percent annually, New Dartmouth 2 percent, Ledyard 1.77 percent and Fleet 1.51 percent.
The cost of having 200 checks printed, the standard option for opening an account, varied from $10 to $12.10 at the four banks.
Ledyard charges only $10 for the checks, but it also charges $2 for an ATM card which the other banks offer free of charge. Ledyard's real cost to the customer is $12, closer to the cost of the three other banks.
Fleet charges $11.50 for the basic package of 200 checks, First NH charges $11.82, and New Dartmouth charges $12.10.
Ledyard offers a non-interest checking account with a $500 average daily balance to avoid a $4 service fee. Fleet offers a similar account that has a $3 monthly penalty if the daily balance ever falls below $750 during the month.
New Dartmouth Bank has organized a mailing to incoming Dartmouth students for the past few years. The package recently included account information from New Dartmouth, Fleet and First NH.
New Dartmouth purchases the mailing list from the Freshman Office and it must clear the information through the office before mailing it.
"Our response from the mailing has been tremendous," Watson said. "We actively solicit students and look at each new opportunity as a potential long-term customer."
First NH attempted to gain a larger share of the student banking deposits this year by creating a student checking account this August, designed specifically for students who do not write many checks and who keep low monthly balances, Branch Manager Cynthia Chapman said.
Fleet Bank's Husband said he was less enthusiastic about soliciting student accounts because it is such a large bank and the majority of its deposits do not come from students.
"The further down Main Street you are, the less business you get," Husband said, referring to Fleet's location at the south end of the business district.
