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. Revenue was up 23% from the first full quarter of President Donald Trump’s second term.
1. Fees climb
US banks collected $1.6 billion in overdraft fees in the third quarter, a 9.4% increase from the prior three-month period and the highest quarterly amount in four years. Fees rose 23% in the three months ended September compared with the first full quarter of Trump’s second term, though they remain below their all-time highs.
2. Consumer concerns
Some economists said rising overdrafts could be an early warning sign of weakening consumer finances. Moody’s Analytics chief economist Mark Zandi said he wondered whether increasing overdrafts might lead developing credit problems. The increase follows a rollback of a Consumer Financial Protection Bureau rule that would have capped overdraft fees at $5 per transaction; the rule never took effect.
3. Bank figures
JPMorgan Chase and Wells Fargo charged a combined $590 million in overdraft fees in the third quarter, roughly equal to the amount collected by the other 20 largest banks combined. JPMorgan’s fees rose 32% from the first quarter of 2025, while Wells Fargo’s rose 17%. Bank of America’s overdraft fee revenue increased 49% over that period to $55 million.
