Personal finance
GE Capital Purchasing MetLife Bank

Washington DC Might Divest from Bank of America, Wells Fargo

Miles By Discover Offers Relief to Noncommittal Travelers

Collection Agencies Resurrecting Old Debts Through Credit Card Offers

Treasury Doubles Purchase Limits on Electronic Savings Bonds

Cordray’s First Move as CFPB Head: Regulate Nonbanks

Weekly Wrap: Bank of America’s Worst Week Ever?

Dear U.S. Banks, Your Business Model Stinks

Shadow Banking Due for Some Time in the Spotlight

Weekly Wrap: Banking Slowly Dissolves?

Under the Roofs of Coffee Shops You’ll Find Your Online Bank

Brokerage Checking Still a Competitive Choice

Beware the Mirthful FOMC Meeting

Did ING Direct Customers Overreact to the Capital One Purchase?

No Balance Transfer Fee Offers Reappear But Hard to Exploit

Russell Simmons’ RushCard Lowers Fees, Is Still Bad

The Reason Why Freddie Mac Doesn’t Want to You to Refinance

New Bank Perks Cater to Tech-Savvy Customers

St. Louis Fed President: Raise Interest Rates

Whitney Warns: Banks to Banish Middle Class

Dime Savings Cites Regulations in Switch to State Charter

FDIC to Banks: Start Lending Again!

Weekly Wrap: Grey Days and a Sideshow

Weekly Wrap: Banking’s Spring Is Still Far, Far Away

American Express and Gen Y: BFF?

Banks Close Revenue Gap from Overdraft Fee Losses
An update to a study from earlier this year found that while the average price tag on overdraft fees has increased, banks still lost money year over year. But the amount of money banks actually lost is now lower than first reported, pointing to a possible shift to profitability in 2012.

Back in January, we first reported bank research firm Moebs Services’ findings that financial institutions generated $29.5 billion in revenue from overdraft fees in 2011 — a decline of $3.6 billion compared to 2010. On March 9, Moebs updated their findings, reporting that banks actually earned $31.6 billion in overdraft fees, cutting the year-over-year drop in half to 4.5 percent from 10.1 percent.

Moebs also updated its estimate of the median fee charged by banks to $28, down from the earlier estimate of $30.

Large banks (those that carry $50 billion or more in assets) have a much higher median fee of $35, according to Moebs. The findings for large banks falls in line with MyBankTracker’s bank fee study, which studied common fees for the ten largest U.S. banks.

Our study of overdraft fees shows:

* The average overdraft fee is $33.70 at the top 10 U.S. banks
* Bank of America and Wells Fargo both charge $35
* Chase and Citi charge $34
* The average overdraft fee is $23.40

Regulations and fees

In July 2010, President Obama signed the the Dodd-Frank Act into law. Among the provisions of the law was a measure designed to prevent banks from locking consumers into fees when signing up for a new deposit account. Today, adding overdraft to your account is an opt-in only experience.

Even with the new law, some 100 million Americans made the decision to opt-in for overdraft by September of 2011. Moebs’ recent survey of 1 million checking accounts nationwide found that the consumer opt-in rate has grown to 75% and continues to increase.

Consumers’ willingness to opt in suggests that there is a fee level at which people are willing to pay to avoid being rejected at the cash register. The search for this “sweet spot” may be driving the move by some community banks and credit unions to lower their fees in hopes of attracting new consumers.

If your not sure if you are currently opted-in to overdraft, we recommend contacting your bank or visiting a local branch to confirm. At that point, weigh the pros and cons of keeping or adding the fee based on your spending habits and the cost to being charged the fee. But, consumers are always advised to take steps to avoid incurring overdraft fees.

Äë˙ ďĺ÷ŕňč

Weekly Wrap: Astrology is Bunk

Refinancing Your Mortgage Lines the Pockets of the Biggest Banks

Experian Unveils New Credit Score for the Underbanked

New Upromise Credit Card Gives 10% Cash Back at Major Online Retailers

The Best Experiences Your Credit Card Can Buy This Summer

Citi Offers New Way to Spend Rewards

Fed Study: CD Rates Are Less Attractive

Wells Fargo Raised Checking-Account Fee, Slashed Bill-Pay Fee

Weekly Wrap: Get Bullied, Get Rich

Taibbi: No Difference Between Banks and the Mafia

Why You Should Probably Raise Your Credit Limit, Especially When You Don’t Want the Money

Accounts Push Relationship Banking

Weekly Wrap: LIBOR Aside, You’re Still in Control

ftp clients for mac

Fed Report Shows Mobile Banking Empowers the Underbanked

Top Gas Credit Cards to ‘Refill’ Your Wallet

Prepaid Cards for Payroll Purposes: Fair to Workers?

Weekly Wrap: Mobile Banking’s Onward March

Banks Close Revenue Gap from Overdraft Fee Losses

Banks Lack Social Media Efforts… Oh Really?

SpringCoin: Out to Automate Credit Counseling

Could Student Loan Forgiveness Help the Economy?

Chase United MileagePlus Club Card Takes Flight

Caviar and Champagne With Your Checking Account?

Weekly Wrap: Cash Rules Everything Around You? Not For Long

SmarterBank’s Checking Account Helps Pay Off Student Loans

Chinese Furious Over Banking Fees

Banks Should Use Prepaid Cards to Hook ‘Em While They’re Young

Prepaid Travel Debit Card Provider Eyes U.S.

Sallie Mae Credit Card Helps Pay Back Student Loans

Post-CARD Act, Banks Shift to Prepaid on Campus

Weekly Wrap: Things Are Not as They Seem

Gen Y Eyes Retirement with Rose Tinted Glasses

Low Interest Rates: A Ticking Time Bomb?

Are Discover Partner Gift Cards Worth the Rewards Points?

Kony Solutions’ Branding Problem: Bank Software Firm Has Killer’s Name

Weekly Wrap: Fancy Gadgetry, No Money

Weekly Wrap: Millenials’ Big Day at the Races

UFB Direct Adds Money Market Account With 1.15% APY