Overdraft Fees Rise At Community Banks
LAKE BLUFF, ILL. — The national median price of overdraft fees has peaked at $28, holding steady for the past seven months, according to a recent study from Moebs $ervices.
But if any financial institution is inching that figure higher, it's the community banks.
Typically the big Wall Street banks lead the increase, explained Mike Moebs, economist and CEO of Moebs $ervices. However, according to the Moebs $ervices study, community banks have increased their overdraft fee by an average of $2 in the last seven months.
"They are doing this in anticipation of a sharp drop in revenue, due to the upcoming loss of interchange fees that is mandated in the Durbin Amendment to the Frank-Dodd bill," said Moebs. "And we expect credit unions will follow suit prior to the implementation of that provision of the bill."