Overdraft fees could be the worst banking fees ever. They’re like speeding tickets: Drive carefully and you won’t get any. Likewise, if you manage your account balances carefully, you’ll never have to pay overdraft fees. But if you have a spending lead foot, overdraft protection might sound like a safe bet.
The American Bankers Association polled over 4,000 US adults in March 2024, and found that more than two-thirds found overdraft protection to be a valuable part of their banking experience. But the overdraft landscape is starting to change. In its final days, the Biden administration finalized a CFPB rule limiting the overdraft fees banks may charge—even as the incoming Trump administration threatened to do away with this entire agency, possibly preventing the rules from being implemented.
