How Much Do Banks Benefit From Overdrafts? 3 Things You Can Do

Seeing that overdraft charge on your bank statementabout the overdraft fees you are paying. After all, in
is never a fun experience. Your bank statement issome cases you can clearly demonstrate that a
already full of withdrawals and fee deductions, somistake has been made and that you should get a
realizing that you have paid $35, $70, $105 or more torefund. Still, doing this regularly can get old, given that it
your bank in overdraft fees over the past month justuses up your valuable time.
adds to your woes.2. Switch to a different bank overdraft protection bank:
It gets one thinking, "How much do banks benefit fromAnother thing you can do is just to up and leave your
overdrafts?" The answer is: a whole lot. In fact, banksbank in anger. However, in many cases, this is like
together make over $30 billion per year ingoing from the frying pan to the fire: most national and
overdraft-fee-derived profits each year in the U.S.local banks also have strict (and expensive) fee
alone. As you can see, overdraft programs are nopolicies.
small potatoes for banks. And, they will do what they3. Switch to a no-overdraft-fee bank: A third option
can to continue to earn these fees from you in theyou have is to find a bank whose policy is to never
future, month in and month out.charge you an overdraft fee - even if you overdraw
If you are concerned about banks making money viathe account. These banks will never try to charge you
overdraft fees at your expense, here are 3 things youan overdraft fee. Now, that's refreshing!
can do:Yes, banks do benefit greatly from the overdraft fees
1. Complain to your bank and hope for a refund: Thereyou pay them each month. Why not stop feeding their
is no shame in lodging a complaint with your bankprofits and instead find a better bank?