Everything You Need To Know About Overdraft Fees [GRAPHIC]

Don't like keeping all of your money stuffed underneath the mattress? That could cost you a pretty penny.

Banks collected $29.5 billion in overdraft fees last year, or $124.08 per American adult, according to a new infographic by Mint.com. And those are far from the only fees imposed on customers. As of October 2010, half of bank accounts had been issued a staggering 49 different types of fees, some costing as much as $175, according to an April report. Don't expect the fad to fade away -- on the whole, fees are expected to increase on the whole this year.

At times, banks have pushed their lucked. Bank of America late last year proposed a monthly five-dollar fee for customers to use debit fees, causing a national uproar and hundreds of thousands of banking customers to pull their money out of big banks and put it in credit unions. BofA cancelled the fee just over a month later.

Here's all the other information you'll need to understand the state of American banking fees:

Comments

[Jay Gould]

05:36 PM on 01/30/2012

Overdraft fees did go up in the wake of the Durbin Amendment, which many of us predicted and that's just one of the all-too-predictable side effects that people now "discover" (another "startling" discovery you'll find here: http://blog.unibulmerchantservices.com/another-durbin-amendment-side-effect-gets-the-limelight).

Still, everyone should know that after the first time you overdraw your balance, you should call your bank and ask to be reimbursed for the penalty fee (which, by the way, cannot exceed $35 per occurrence). Most banks will do it for you. From the second time onward, however, you will have to pay the overdraft fee.

[sjoberdix]

06:27 AM on 01/30/2012

The only way to protect yourself and save money at the same time . Is cash only and you'll always live in your means!

[frank day]

07:46 AM on 01/30/2012

Some bills are difficult to pay with cash.

A good strategy is to link your savings account to your checking account.

That way any overdrafts get covered by you ( fee free) instead of the bank.

[sjoberdix]

09:12 AM on 01/30/2012

Money orders and a stamp, works just fine.

[Jondrea Smith]

09:24 PM on 01/29/2012

I understand when people purposely spend more money than they have, but I hate it when these fees are the result of the bank playing with someone's cash flow. Banks know better than any of us the time-based value of money and the detrimental effect of even a small hiccup on their part, especially when people have set up automatic ACH debits for their bills and expenses, dependent upon the timely deposit of their earned wages. That's where I have a problem. Banks shouldn't be allowed to levee undue fees on their customers due to negligence or malice on their parts.

[Kenz300]

02:07 PM on 01/29/2012

Move your money from the big multinatio­­­­­­­­­­n­a­l too big to fail banks.....­­....

There are local banks, savings and loans and Credit Unions that can and will treat you better.

Local banks lend locally for home and businesses

Here is what to do:.

1. Open up a new account at your local Credit Union.
2. Then transfer all your automatic transactio­­­­­­­­­­­­n­s to the new account
Make a list of all the direct deposits and automatic withdrawal­­­­­­­­­­­­s­.
Paychecks, Social Security, pensions, any bills paid automatica­­lly each month..­­­­­­­­­­­..
4. Once your certain that all deposits and withdrawal­­­­­­­­­­­­s are at your new account -- close the old account.

These too big to fail banks do not deserve your business. Take a stand and move your money.

Move to a Credit Union. They will treat you better

[SeenItBefore]

03:53 PM on 01/30/2012

My credit union paid ME to keep my money in their building. Not only do I EARN interest on my account (4), but my personal account debit card garners a nickel every time I use instaed of writing a check. That ADDED $22.15 to my account last year alone.

I spent 38 years with Wells Fargo and/or Bank of America and paid through the nose.

Never again will I be that stupid again!

[born 2b different]

01:49 PM on 01/29/2012

Everything you need to know to avoid paying overdraft fees:
http://www.staples.com/Staples-SPL-150-10-Digit-Display-Calculator/product_466463

[Kenz300]

01:33 PM on 01/29/2012

Banks need to quit acting like casino's and need to go back to lending.

[ErnestineBass]

08:38 PM on 01/29/2012

Yep. It's time for Congress to reinstate Glass-Steagall.

[SeenItBefore]

03:54 PM on 01/30/2012

Might as well close the barn door, the horse and your money are long gone!

[Kenz300]

11:58 AM on 01/29/2012

Move your money..........

Do business locally.... Big multinational banks lend over seas. Local banks lend locally.

Check out your local bank, savings and loan or Credit Union.

[Pam Herman]

02:03 PM on 01/29/2012

Local banks and credit unions are the only way to go. Even if a person can't move a mortgage (that isn't so easy), at least they can move savings and checking accounts.

[LeFlaneur]

11:03 AM on 01/29/2012

Lately I've also been getting account maintenance fees. What the heck is an account maintenance fee? Are they they rotating the tires and changing the oil in there? Account maintenance is what a bank does. How about a restaurant charging an extra "meal preparation" fee?

[Captain Hindsight]

08:40 AM on 01/29/2012

Personal Finance should be an Elementary School graduation requirement. I it learned back in the 60's when I had a paper route, shoveled snow and cut grass for spending money. Those options are not as available today.
I bounced a check once and never use a debit card. I never charge something that I can't pay off within a month but I have the credit available for emergencies. I wait for sales and clip coupons.

I don't make much so I have to make every dollar count.

There is no reson to let the banks have a reason the charge these fees unless it is given to them and the will take every cent the can take according to the law.

Two two things that need to change are spending habits and banking laws.

[whitcombc]

01:09 AM on 01/29/2012

I am not one to side with irresponsible people. And that is the problem here. We have been so brainwashed that we believe that because a criminal act happens to you, because someone takes advantage it must be your fault. The Direct Deposit is IN the bank but the bank can delay posting it even though the money has left the sending agent, is in the receiving bank but just not posted to cover debits. The reason - because they can do it. It isn't right, it isn't moral, it isn't even strictly legal. But they can and often do do it. This is no longer banking. This is costly money movement.
If we get through this mess and get the banks to go back to Banking - paying you money for using your money for loans - then the gambling banks will have to risk their own investors money exclusively. Banking will be boring again - Stable boring and safe. Meanwhile credit unions are the only place you can be sure of some sort of real useful banking - move your money there.

[artfish]

07:48 AM on 01/29/2012

F&F
Sensible, smart, simple.

[jflorish]

12:08 AM on 01/29/2012

I'm surprised the fees for 2001 are not much less then 2011 ... I would have thought that number would be alot higher.

[lewis3k]

06:37 PM on 01/28/2012

That's why I have a credit union account.

[wtf is this]

03:51 PM on 01/28/2012

Thats a lot of people that can't balance their checkbooks.

[rory talbot]

09:08 PM on 01/28/2012

No, that's a lot of banks that rearrange the transactions so the largest pay first and create the largest number of fees. And since you can't "balance" your checkbook of you don't know about the fees (until after its too late), you get hit with even more fees.

[wtf is this]

10:01 PM on 01/28/2012

I agree they take advantage once you're in the hole. But it's a totally avoidable problem if you don't spend money unless you're sure you have it.

[spinotter11]

10:04 PM on 01/28/2012

If people are so close to zero that rearranging the order of debits and credits causes an overdraft, they are doomed to keep paying overdraft fees.

[EdgarRoniFigaro]

06:50 AM on 01/30/2012

One thing that's messed up almost everyone I know at least once is when their banks take their deposits and make them "unavailable for immediate withdrawl". Where that money goes for those two or three days is anyone's guess, but when you're living paycheck to paycheck, that sort of thing can really wreak some serious havoc. So sometimes the problem isn't irresponsibility on the customer's part... it's trickery on the bank's.

[FaaLaveLave]

01:38 PM on 01/28/2012

Had a checking account for thirteen years at B of A. Also, had a car loan, a large CD and an ATM that I used daily.

Yesterday we withdrew the tiny remainder of our checking account and will never bank with them again.

In the meantime have had to battle with our old time family bank in our town over their need to charge us a fee of $50 that would have added up to $200 had we let it ride. Gives me some insight where that bank is headed, too. Sad.........my Mom opened her first account there in 1941. Oh, that bank did back down off the $50 fee and we will fight them tooth and nail over every other unexplained, unanticipated charge that they try to make. WE have CHANGED, TOO.

[mdsman]

12:03 PM on 01/28/2012

lesson learned, don't write checks or use debit card if you don't have enough money in the account
pretty easy, really

[runswithscissors]

02:36 PM on 01/28/2012

Until, like they tried to do do me, BoA delays your direct deposit for two days for no reason (and without notice) and hits you with 13 overdraft fees ($39 a piece, for $507 total). Since my check didn't cover the monthly bills plus the phantom overdraft fees, I got hit with 3 more after the fact, bringing the total attempted scam up to $624. Needless to say I raised hell and got everything taken off, which they seemed to think made up for everything.

Lesson learned, don't give your money to criminal enterprises (even if they attempt to legitimize their scams with a fancy building and an innocuous sounding name).

[mamadillo]

05:58 PM on 01/28/2012

You learned the wrong lesson. What you should have learned is not to send out payments until the money is actually in your account. BoA is a miserable institution, but this particular problem results from your intentionally spending money you didn't yet have.

[mdsman]

06:54 PM on 01/28/2012

you wrote checks without confirming the direct was in? mistake....
You pointed this out and the bank made everything right? And you are still angry with them?
Seems that they did the right thing after you made an assumption.