Four years after regulators tried to curb them with regulations; overdraft fees are on the rise.
The median fee for over withdrawing on a checking account was up to $30 in 2013; up a dollar from the year before and $4 from 2009.
Overdraft fees makes up the majority of checking-account fee revenue. Financial institutions generated $31.9 billion in overdraft revenue in 2013, down slightly from $32 billion in 2012 and markedly from 2009’s all time high of $37.1 billion.
“Banks lost significant fee income over the past few years, but in 2013 there was stabilization, [and] going forward revenue will grow slightly,” banking analyst Jefferson Harralson told The Wall Street Journal. “Banks are continuing to try to recoup the lost revenue by getting customers to use overdraft services and perhaps by nudging fees selectively.”
“What’s Hot” is aggregated content. PYMNTS.com claims no responsibility for the accuracy of the content published by the original source.
We’re always on the lookout for opportunities to partner with innovators and disruptors.
Learn More