AREA BANKS OFFER FREE CHECKING

Citing fierce competition, many banks in the area are offering free checking.

That means customers can operate a checking account at no charge with basic service. Customers must pay for the printing of the checks, but regular processing of checks written on the account will be free.

Before, many customers had to pay a monthly service charge when they opened a basic checking account.

"We have done this in a number of markets and the reception has been tremendous," said Cord Polen, the president of Cape Girardeau's Commerce Bank. "We have carried it over to Cape Girardeau hoping for the same success."

It's no secret that banks exist to make money, and Polen said by offering free checking, customers are more likely to take advantage of other services available at the bank.

Representatives from other banks in Cape Girardeau agreed.

"When we say free checking, we mean free," said Rhetta Miller, a marketing officer with Capital Bank Corp. "The only thing customers pay for is the checks."

Miller said Capital hopes to profit from other services customers might take advantage of while using their free checking account.

"We hope we will be able to cross sell other bank services and provide bank loans through these types of accounts," she said. "Capital started offering free checking a couple of months ago: Oct. 1."

Miller said Cape Girardeau is competitive when it comes to banking. She said if all banks don't already offer free checking, they will probably add the service soon.

"We know everyone eventually purchases a car or maybe a home at some time," said Jeanne Goodman, the senior vice president of marketing at Boatmen's Bank. "We want to start a relationship with them and we want them to come back for more."

Goodman said by offering free checking, Boatmen's Bank has the opportunity to point out other services to customers.

"And we offer more than one way to have a free checking account," she said. "We have accounts geared toward the college student or for our senior account holders."

Capital and Commerce also are creating free checking accounts they call unique.

"Our free checking is a little different because they have to apply for our Special Connections credit card," Polen said. "It doesn't matter if you're approved or not, or whether you use the card if you are accepted, but you do have to apply. We also offer overdraft protection if you're accepted. An advance off the credit card can be made automatically."

Polen said Cape Girardeau is one of the most competitive banking markets in the state.

"Our company has been pleasantly surprised," he said, "with the results from offering free checking."