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ATM fees rise while overdraft and NSF fees fall
“ATM fees are biting harder than ever,” said Greg McBride, Bankrate’s chief financial analyst.
The average total fee a customer pays for an out-of-network ATM transaction rose to $4.73, a record high, Bankrate found, based on data from non-interest and interest accounts. The average overdraft fee fell 11% to $26.61 from last year’s average of $29.80, while non-sufficient fund fees hit an all-time low of $19.94, according to Bankrate. The average overdraft fee fell 11% to $26.61 from last year’s average of $29.80, while non-sufficient funds fees hit an all-time low of $19.94, on average, according to Bankrate.
However, few banks have done away with them altogether: 91% of banks still charge overdraft and 70% charge non-sufficient funds fees, Bankrate also found.
Last month, the CFPB ordered Bank of America to pay more than $100 million to its customers and $150 million in penalties for double-dipping on overdraft fees, among other violations.
“Despite recent progress in addressing overdraft fees, the job is far from complete,” said Nadine Chabrier, the Center for Responsible Lending’s senior policy counsel, in a statement.
Monthly fees can be hard to avoid
While free checking accounts are widely available, many banking customers are encountering monthly service fees and rising balance requirements, Bankrate found.
More than a quarter of checking account holders, or 27%, are regularly hit with fees, which can add up to an average of $24 per month, or $288 per year, according to another survey from Bankrate. While free checking accounts are widely available, many banking customers encounter monthly service fees and rising balance requirements. This can add up to an average of $24 per month or $288 per year. Here are some other options that you might want to consider. “Consumers are able to avoid additional account fees almost always by using direct deposits, maintaining a minimal balance, or limiting their use of ATMs not affiliated with the bank,” said Mike Townsend a spokesperson Some banking interest groups countered that overdraft protection is a much-needed safety net. “
Some banking interest groups countered that offerings such as overdraft protection provide a much-needed safety net.
Without the option of overdraft protection, “people are more likely to turn to predatory lenders, hurting the same people the administration seeks to help,” Jim Nussle, president and CEO of the Credit Union National Association, said in a statement.
For more on checking accounts, check out CNBC Select’s recent ranking on the [monthly service]best