How to avoid those Overdraft Fees

“Overdraft Fees Remain Costly; Here’s How to Avoid Them.”

Despite predictions that banks would eliminate overdraft fees, they remain a costly burden for many consumers.

Last year, the average overdraft fee was $26.77, only a one percent dip from the $27.08 average in 2024, according to the latest checking account survey by Bankrate.com. Ninety-four percent of the account options Bankrate studied still charge a fee when accounts have a negative balance.

A few years ago, the Consumer Financial Protection Bureau (CFPB) announced a new rule that would have limited overdraft fees to $5. Faced with increasing public scrutiny of so-called “junk fees,” some major banks voluntarily changed their overdraft policies, lowering their fees, offered grace periods, or eliminating their fee.

But in 2025 Congress killed that regulation (see below), and consumers continue to pay more than $12 billion a year in fees.

“The death of overdraft fees was greatly exaggerated,” said Ted Rossman, Bankrate’s principal analyst. “At some banks you’re still paying $25, $30, or even $35 per overdraft,” Rossman noted. “Overdraft fees are not dead.”

More info at:
https://www.checkbook.org/delaware-valley-area/consumers-notebook/articles/Overdraft-Fees-Remain-Costly-Here-s-How-to-Avoid-Them-7991