CNBC, June 5, 2020: Overdrafts earned the biggest banks $11.68 billion last year—and expert
Banks typically charge overdraft fees when you overdraw your checking account. Instead of having your debit card declined or the purchase canceled, your bank will cover the difference and charge you an overdraft fee, usually about $30 to $35. The similar “non-sufficient fund fee,” is usually levied when a check bounces in any transaction, including with any recurring bills customers may have.
These fees add up. Last year, banks with assets of $1 billion or more charged customers $11.68 billion in overdraft and non-sufficient fund fees, according to a recent report from the Center for Responsible Lending. The total does not include credit unions or smaller institutions with under $1 billion in assets.
