With some banks removing them altogether, are we over overdraft fees? Not even close.
- 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.”
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!).