U.S. Bancorp is raising some of its overdraft fees, the latest example of banks changing what they charge checking-account customers.
The Minneapolis-based bank will start charging debit card customers $35 for overdraft protection on transactions of more than $15 starting June 29, a company spokesperson said May 16. It currently charges $33 for overdrafts on transactions of more than $20.
U.S. Bank also will raise its prices for overdrafts on smaller transactions, to $15 for charges of $15 or less, from the current overdraft-protection price of $10 for charges of $20 or less.
The pricing changes are “part of an overall review of our deposit fees,” spokesperson Teri Charest said in an email. “While there’s nothing inherently special about the dollar threshold, our goal is to continue to ensure that the fee is relative to the size of the overdraft so that our customers never experience the proverbial ‘$35 cup of coffee.’”
Later this year, U.S. Bank also plans to eliminate some of its checking account fees, including charges for closing an account early, and will reduce its stop-payment fees, Charest said.
Its overdraft changes are the latest attempt by large banks to adjust to new regulations capping debit card overdraft-protection and interchange fees.)
Despite its newest price changes, U.S. Bank’s tiered overdraft-fee structure and its policy of waiving a fee if a customer overdraws an account by less than $10 are “steps in the right direction,” says Mike Moebs of research firm and consultancy Moebs Services, estimating that recent regulations likely have cut at least 10% from the bank’s overdraft revenue.
A longer version of this story is on AmericanBanker.com.
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