LAKE BLUFF, Ill.—Rising overdraft prices have stabilized, according to a new report from Moebs Services.
After the firms'
Michael Moebs, economist and CEO at Moebs Services said that banks' overdraft pricing the last year has not moved noticeably.
"There were slight increases by a few banks and thrifts in the past several years, but nothing of significance for these two groups in 2013," he noted.
Banks with assets greater than $50 billion still have high overdraft fees at $35, while large credit unions (those mainly over $5 billion in assets) have a $25 median price, 29% lower than their big bank competitors.
"The best place to have your checking account to avoid high fees is at a community bank or credit union," said Moebs.
According to the latest Moebs study, which covered more than 2,900 depositories reporting fees as of January 2014, overdraft fee prices are lowest in the West.
"The South has been leading with pricing increases the past two years," said Moebs, "but now the rest of the regions in the country are catching up."
Large cities and rural markets have lower fees than suburban and small-city markets.
"Two years ago, large-city markets were the first to reflect price changes," he added. "Now, we find more suburban markets and small city markets increasing prices first. However, the rural markets are definitely still the last to change price."
Last year's report also covered more than 2,000 depositories reporting fees as of June, compared with OD fees reported six months previous in December 2012. That survey found the median overdraft fee in the U.S. moved up in 2013 to $30, from $29 in the previous year. In that same period, credit unions had increased their median OD charge to $28 from $27.
Bank and thrift pricing, however, remained unchanged at $30 during that period, the same price they charged in 2010.
