Why are Banks Cutting Overdraft Fees?

Huntington announces sharp reduction in fees as industry focus shifts

Andy Spears
2 min readMar 9, 2022
Photo by Christian Wiediger on Unsplash

Columbus, Ohio-based Huntington Bancshares announced this week it will cut the cost of an overdraft fee by about 60% starting in April. The bank also plans to reduce the fee it charges when a customer’s transaction is rejected due to insufficient funds. Both fees will go from a current amount of $36 to a reduced amount of $15.

The move at Huntington comes as major national banks and some regional banks are moving away from overdraft fees altogether.

The move is being further accelerated by the Consumer Financial Protection Bureau’s (CFPB) notice of intent to regulate the fee practices of the banking industry.

“Rather than competing on quality service and attractive

--

--

Andy Spears

Writer and policy advocate living in Nashville, TN —Public Policy Ph.D. — writes on education policy, consumer affairs, and more . . .