November 2018 – Checking Account Overdraft Services: Policies, Fees and Private Site Management

​Overdraft services can help account holders avoid the inconvenience of declined transactions after a temporary lapse or in more extreme circumstances, but high fees are a frequent pain point. While overdraft fees may be an important revenue source—especially at their highest rates in years—banks risk reputational damage when they tack on excessive fees during potentially stressful times for account holders. Besides reducing fees, firms should provide account holders with straightforward options to tailor overdraft coverage and protection on their accounts to their needs. Transparency regarding fees is key, in addition to comprehensive online interfaces; account holders should easily understand available overdraft services without any calls or visits to manage settings. This report examines the various aspects of overdraft services among the Bank Monitor coverage group, including coverage and protection options, fee schedules and available online interfaces.

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