Americans Paying $17.5 Billion Annually in Bank Overdraft Fees
USA Today reports that banks are making it easier for Americans to overdraw their bank accounts. The $17.5 billion Americans paid in bank overdraft fees in 2006 was up 70 percent from the $10.3 billion they paid were charged in 2004.
In the 1990s, banks began automatically covering overdrawn transactions, for a fee. These fees now average $34 per transaction.
Banks are also making it easier to overdraw your accounts. A growing number of banks are allowing debit card transaction when there are insufficient funds in your account. More banks are clearing checks from the highest amount to the lowest, thus allowing the bank to charge more fees.