With some banks removing them altogether, are we over overdraft fees? Not even close.
Answer: $29.80
Questions:
- What do you think are the reasons that people spend more money than what they have in their checking accounts?
- What has been the recent trend with the average amount of overdraft fees? Why do you think some banks have started removing overdraft fees?
- What are the ways that you can prevent your account from being overdrawn (spending more than you have in your account)?
Behind the numbers (BankRate):
“The trend among banks to reduce or eliminate overdraft and NSF fees comes at a time when proposed federal legislation would limit their ability to charge such fees. The Consumer Financial Protection Bureau (CFPB) has also called for an end to these fees, releasing a report that revealed 20 banks each earned between $50 million and $1.4 billion in overdraft and NSF fee revenue in 2021.
While average overdraft and NSF fees are lower than they’ve been in more than a decade, they’re not completely going away just yet. Fees for overdrafts and nonsufficient funds are still charged by 96 percent and 87 percent of accounts surveyed, respectively.”
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The NGPF Online Bank Simulator is a great way to teach your students how to manage an online bank account (and avoid those pesky overdraft fees!).