While it’s widely known that men, on average, earn more than women, it turns out there’s also a gender gap in banking behavior.
According to a recent survey by TD Bank, men rely on credit and invest more than women do, while women are bigger fans of mobile banking and pay more bank fees.
Here are some of the differences, according to TD's 2014 Bank Checking Experience Index:
Debit Card Usage
Nearly half of all women (48%) prefer to use debit cards for everyday purchases as opposed to just 38% of men.
Sixty-six percent of women say a debit card is essential, while only 53% of men do. And 28% of women call their debit card their most valuable banking product for everyday banking needs, compared to 22% of men.
(Tandguladze/Wikimedia)
Credit Card Usage
Fewer women have credit cards than men — 62% compared to 72%.
Reloadable Prepaid Cards
More women use reloadable prepaid cards than men for online purchases -- 56% to 43%. But men use them more often for day-to-day purchases — 41% as opposed to 33%.
Mobile Banking
Women make about twice as many checking account transactions through mobile banking as men do — two checks a month vs. one. Seventy percent of women rate their bank very good or excellent in terms of its mobile banking features compared to just 62% of men, and they’re also happier with their remote check depositing service.
More men than women invest — 39% vs. 27%.
Alternative Banking
Men are also more likely to use alternative banking products — 14% of them say they have recently used a check cashing service, compared to 10% of women. Fourteen percent of men have also used a money transfer agent such as
Bank Expenses And Fees
Men spend more on banking fees and services than women do, spending $42 a month, compared to $25 a month for women.
But women are more likely to pay out-of-network ATM fees — 37% vs. 29% — and overdraft fees — 44% vs. 36% on their checking accounts. However, men are more likely to have minimum balance fees — 18% to 11%.
Overall
While some of these differences may seem innocuous, they could also reflect problems for one gender or the other. For instance, financial abuse occurs in 98% of domestic violence cases, and disproportionately affects women. One reason women are less likely to have credit cards could be due to male partners prohibiting them from having their own credit cards to exhibit financial control.
On the flip side, men’s higher credit card use could reflect a more relaxed attitude toward debt that could cause trouble. According to Experian, men are 7% more likely than women to be late on their mortgage payments.
