Update 6/21/22: Citi has now removed overdraft fees.
Original post (2/24/22): Citi has announced a plan to eliminate overdraft fees, returned item fees and overdraft protection fees by this summer. Earlier this month TD Bank announced the removal of overdraft fees for overdrafts of less than $50 and 24 hours to avoid overdraft fees of more than $50. Financial institutions are estimated to have made more than $15 billion in overdraft fees in 2019.
It seems to me like banks are prioritizing attracting deposits because they now foresee huge profits from net interest margin especially as the Fed raises rates.
They forgot the part where their IT system will still charge you the overdraft fees until they are able to update it in 2028.
Until then, you can call customer service who will claim you weren’t charged overdraft fees because they eliminated them in 2022.
But no need to despair, as you can visit a branch to speak to a banker, and you’ll have your $34 back in 2-3 hours or so.
Unless the banker doesn’t enter it into the system correctly, in which case you can try again tomorrow.
DCU has overdraft coverage backed by their credit card if you have it. Can someone tell me what this feature is called?
Basically they advance the shortage amount from the credit card to the checking account. Would like to know what other banks/credit unions offer this.
“Overdraft Protection”
I don’t know if DCU-specifically calls it that, but that’s the general industry term for what you are describing.
(Edit: My comment is “awaiting moderation” for some reason. So if my reply pops up many hours after someone else has already answered your question, that’s why, lol.)
There is my reply (about 9 hours later, lol).
And it is useless and not what OP was asking for. They already mentioned “overdraft coverage” in their comment so they were specifically asking about the credit card aspect.
Some friends try to give me grief for churning bank bonuses like I’m doing something wrong; I never felt bad about it. Seeing that institutions made more than $15 billion in overdraft fees in 2019 makes me want to find even more bonuses.
You’re churning get back at them for being profitable? So if they weren’t profitable, you’d stop? I really doubt it. There’s no need to hide behind some righteous facade. No one is playing this game to be righteous. Everyone’s doing it for money.
Including the banks, above all 😆
We’ll likely never find out the answer to your question (since big banks will continue to do similar things for the foreseeable future).
Naddi Lol. Not sure why you’re getting so worked up over my comment. Of course I’m in it for making money, but I don’t feel bad because of the kind of crap banks pull. You can get off your soap box.
I get paid a salary for doing “real” work and I’ll grab whatever easy money they’re handing out on the side. Nothing more needed to justify or defend myself.
You have some dumb friends.
Last week was the announcement that there was going to be an announcement that they are working on a plan.
They likely lose more money on allowing customers to go negative than they make from overdraft fees. Now they just won’t let you go negative under any circumstances.
I’m pretty sure they do very well with overdraft fees. It not much different than a short term loan but at interest rates that would even make the mob blush.
Probably more regulations coming that make it not worth it