Another Big Financial Institution Ends Overdraft Fees - Paycheck

Another Big Financial Institution Ends Overdraft Fees

Ahhh yes, the dreaded bank overdraft fees. Everyone eventually has that “$38 cup of coffee” because they accidentally overdraw their checking account. We all hate them but it looks like another big bank is saying goodbye to these fees!

The latest financial institution dropping overdraft fees is Alliant. It is a digital-only lender with $14 billion in assets and 600,000 customers. Alliant is also now the second-largest financial institution to end overdraft fees. You might have heard that back in June another online lender, Ally Bank, became the largest financial institution to scrap overdraft charges.

Just for perspective on how big of a deal this is, roughly 5% of checking account holders overdraft more than 20 times a year. At $35 a pop, that equates to more than $700 annually in fees per customer, a significant amount given that many of these clients are often living paycheck-to-paycheck.

Overdraft fees are quite common and they are a key source of revenue for many lenders. These fees brought in $12.4 billion in 2020 alone!



What do you think? Should more banks and credit unions end these fees?


Connect with us on social media and share your thoughts!

👉 sign up for our weekly newsletter by clicking here👈 and never miss another article!

Lastly, check out this article about the Top 10 Highest Paying Jobs in Michigan

And this article about how Manufacturing workers will now have easier access to Michigan unemployment benefits

As always, here at Paycheckology we are “Translating the media circus into what matter$”


Related Articles

Farm consolidation, pandemic contributing to rising food costs

August 4, 2021

As consumers continue to see rising food prices in the grocery stores and at their favorite restaurants, many wonder what’s going on

Read more

What the opioid settlement means for Wisconsin

August 4, 2021

According to a report by the Wisconsin Department of Health Services, 1,100 Wisconsinites died last year due to opioid abuse.

Read more

How Pennsylvanians Feel About The Current State Of The Pandemic

July 28, 2021

With a year and a half into the COVID-19 Pandemic, the light at the end of the tunnel started to shine.

Read more
Category Sidebar

Thanks for signing the pledge! Click here to share this on Facebook.

By using this website, you automatically accept that we use cookies.