Member Exclusive, New banks

Varo’s No Fee Overdraft saved Americans more than $100 million over the past year

  • Banks charge billions of dollars of overdraft fees each year.
  • Overdraft fees cover the costs of "free checking" as those who pay them subsidize banking for everyone else.
Zoe Murphy | September 02, 2020
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Varo’s No Fee Overdraft saved Americans more than $100 million over the past year

Overdraft fees hit lower and middle income people the hardest. While hardworking people continue to slog it out during the pandemic, not one of the ten largest banks in the U.S. reduced or waived its overdraft fees.

Pernicious overdraft fees: According to the Center for Responsible Lending, the largest US banks took $11.7 billion in overdraft fees from the accounts of American consumers in 2019.

 

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