US bank overdraft fees jump 9% to four-year high, data shows
XLF•US banks collected $1.6 billion in overdraft fees in the third quarter, up 9.4% from the prior quarter and the highest quarterly total in four years. Fees were up 23% from the first full quarter of Trump's second term.
1. Fees reach four-year high
US banks collected $1.6 billion in overdraft fees in the third quarter, up 9.4% from the prior three-month period and the highest quarterly amount in four years. Fees had reached an all-time low in the first quarter of 2025 and have risen steadily since; they remain below their all-time highs.
2. Large banks collect most
JPMorgan Chase and Wells Fargo together charged $590 million in overdraft fees in the third quarter, roughly equal to the total for the other 20 largest banks combined. JPMorgan's fees rose 32% from the first quarter of 2025, while Wells Fargo's rose 17%. Both banks said three-quarters of transactions that trigger overdrafts incur no fee.
3. Experts watch consumer health
Some economists said rising overdraft fees could be an early warning sign of weakening consumer health and developing credit problems. The fees have risen as the Trump administration has scaled back CFPB oversight priorities; a rule that would have capped fees at $5 per transaction was rolled back by Congress and never took effect.
