In a recent interview with Alan Friesen, president and chief executive of Lincoln, Neb.-based consulting firm Haberfeld Associates Inc., Damien Weaver asked about the challenges of attracting low-cost deposits.

"It is a bloodbath at the present to time to get customers and their deposit dollars," he said, noting that deposit totals have finally bottomed out in their steady decline since 1948.

Internet marketing poses a particular challenge, because shoppers are making more informed decisions than ever about which bank they choose, Friesen added.

Maintaining a leading position on the free-checking front has become a priority for National City Bank, a 1,300-branch bank with a footprint in eight states. Even its most basic checking account excludes fees and minimum-balance or direct-deposit requirements, and offers free checks and online bill-pay.  Last month this Cleveland-based bank rolled out its Plus and Elite checking accounts, which offer additional benefits such as surcharge reimbursement when customers use non-National City ATMs.

Also, National City is just over a year deep in its savings rewards program that lets customers accrue points via savings account transactions, which can be redeemed at participating vendors and for cataloged merchandise.

Marketing programs like National City's can be a tough act to follow for community banks, Friesen said, but there is something National City's $136 billion in assets cannot guarantee: the comfort of banking with a familiar face.

In the end, it will be customer service that wins the day, Friesen said. "The game will be execution: Who can provide the best service," he said. "Almost all banks still fall short in that department."