The four banks which eliminated overdraft fees saving you $30

BANKING fees can hit customers hard for minor mistakes

For example, overdraft fees can be triggered over very small purchases.

It could be over just a $5 cup of coffee, which after a $30 overdraft fee, could cost the customer a total of $35.

Thankfully, more banks are doing away with these fees as regulatory and consumer pressure ramps up.

These fees are charged when the bank determines that a checking account does not have the funds to cover an expense.

According to Bankrate, the average fee for overdrawing a checking account rose for the third straight year in 2021 to $33.58.

That amount represents a 22-cent hike over the past two years.

Amid customer blowback, some banks have decided to eliminate the fees altogether.

Others have agreed to lower them.

The banks eliminating overdraft fees

Below is a list of major banks that have announced plans to eliminate them completely.

• Alliant
• Ally Bank
• Capital One
• Citibank - set to go into effect during the summer
• Discover

Banks lowering fees

While some financial institutions are not getting rid of the fees, they are lowering them.

These institutions include:

1. Bank of America - Beginning May 2022, the bank has committed to lowering overdraft fees to $10.
2. KeyBank - By the end of 2022, the bank will reduce overdraft fees to $20 and cap the number of charges to three per day
3. PNC Bank - The bank has capped overdraft fees to $36 per day
4. Santander Bank - The bank has gotten rid of fees for any overdrafts that are less than $100
5. US Bank -  Starting June 30, the bank will increase the amount an account could be overdrawn without incurring a fee to $50

How much banks profit from fees

According to the Consumer Financial Protection Bureau (CFPB), banks and credit unions collected about $15.5billion from overdraft and non-sufficient funds fees in 2019.

The CFPB has said they are often applied for reasons people do not expect or understand.

They also take a heavy toll on families living paycheck-to-paycheck, which represents the majority of Americans.

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