Overdraft and NSF Fees Rise Above $12 Billion

June 3, 2026 — Press Release

With Federal Protections Rolled Back, States Can Take Action as Banks Increasingly Charge Struggling Families Overdraft Fees   

WASHINGTON – Since the Trump Administration and Congress’s decision to roll back limits on overdraft and nonsufficient funds (NSF) fees, many of the country’s largest banks have begun to ratchet up their overdraft fee take. Overall, struggling families paid over $12 billion in overdraft and NSF fees in 2025. A new report from the National Consumer Law Center (NCLC) outlines steps states can take to limit fees and abusive practices imposed on the people who can least afford them. A new issue brief analyzes the 2025 overdraft fee revenue of the 20 largest consumer banks and spotlights several in the “Overdraft Hall of Shame.” 

About a quarter of people live in households that pay overdraft fees each year. The fees fall disproportionately on Black households, people with lower incomes, and people with limited education.

“With Congress and the Trump Administration reversing protection against abusive and unfair bank practices that multiply overdraft fees, some banks are seizing the opportunity to turn struggling families into a profit center,” said Lauren Saunders, senior attorney at the National Consumer Law Center. “While Washington turns its back on people struggling with the affordability crisis, state leaders must seize the opportunity to push back against predatory overdraft fee practices.” 

A 2024 rule from the Consumer Financial Protection Bureau (CFPB) was expected to save households $5 billion a year – $225 a year for families that pay overdraft fees. In the lead up to the rule, many banks had made voluntary changes to reduce or eliminate fees as a result of regulatory pressure. But the CFPB overdraft fee rule was reversed by Congress in 2025, and the Trump Administration has also reversed enforcement actions and guidance against unfair overdraft and NSF fee practices. With the federal pressure off, fees are trending up. 

Several banks stand out in the 2025 data for their high or rising overdraft fee revenue: 

• JP Morgan Chase and Wells Fargo each charged about $1 billion per year in overdraft fees in 2025.
• Much smaller PNC Bank was third, with fees up 8 percent from 2023 to 2025 to $279 million.
• USAA Federal Savings Bank, which caters to the military community, has dramatically increased its overdraft fee revenue since 2023, by a larger percentage than any other bank, primarily by introducing overdraft fees in late 2023. 
• On a per account basis, Regions Bank had the most overdraft fee revenues among large banks, $30 a year on average, and many families paid far more.
• Overdraft revenues are no longer available for credit unions after the National Credit Union stopped requiring reporting of that data, but in 2024 Navy Federal Credit Union had $28 in overdraft fees per account, higher than all but one of the top 20 banks.

Notably, some national players charge no overdraft fees, including Capital One, Citibank, American Express, and Ally Bank, and none of the top 20 banks charges NSF fees.

“It’s especially shocking that USAA, which caters to military families, is extracting money from families struggling to buy groceries, medicine, and gas,” Saunders said. “States cannot stand by while their residents’ bank accounts are drained of billions of dollars during a national affordability crisis.”

Although states do not have the same control over banks that the federal government has, they can take action to limit overdraft and NSF fees, especially by banks and credit unions chartered in their states and potentially others. State action is also important to keep the pressure up for voluntary changes. The report urges that the top reforms states can take are: 

• Limit overdraft fees to $5
• Prohibit NSF fees
• Allow banks and credit unions to collect no more than six overdraft fees per year or fees totaling no more than $200 a year

Other actions states can take to limit particularly abusive practices include, among others:

• Prohibit overdraft fees on debit card and ATM transactions
• Prohibit multiple fees for a single negative balance episode, even one involving multiple payments or days 
• Require a $50 cushion for small overdrafts and a 24-hour grace period before charging a fee
• Ban “surprise” overdraft fees incurred when the balance was positive at the time of the transaction but later settled negative.

The report also urges that states collect data on overdraft and NSF fees to spotlight institutions that abuse their customers and those that do not.

Related Resources

• Press Release: House Republicans Ignore Rising Prices, Vote to Keep $35 Big Bank Overdraft Fees, Apr. 9, 2025
• Issue Brief: Top Overdraft Fee Offenders Hitting Civilian, Military Families, Apr. 3, 2025
• Press Release: 276 Groups Oppose Bill, with Wednesday Vote, to Allow Big Banks to Impose Large Overdraft Fees, Mar. 4, 2025
• Issue Brief: Overdraft Rule Returns $5 Billion in Big Bank Junk Fees to Consumers’ Pockets, Jan. 29, 2025