Customers to Save Billions as Banks Change Overdraft Fee Policies

Report details customer benefits to changing banking landscape

Photo by Dmitry Demidko on Unsplash

A new report from Pew details how changes in the banking landscape have resulted in a dramatic reduction in overdraft fees charged by some of the nation’s largest banks.

Pew notes:

The 25 largest U.S. banks by branch count have made substantial changes to their overdraft policies in the past 12 months that could save consumers more than $4 billion annually.

I’ve reported on these changes at a number of banks — an effort to compete with emerging neobanks and fintech companies offering alternative banking products.

Truist Joins Banking’s Movement Away from Overdraft Fees

The move also comes as the Consumer Financial Protection Bureau (CFPB) has increased its focus on “junk fees” charged to consumers in the financial marketplace.