Summary
The Biden Administration, through the Consumer Financial Protection Bureau (CFPB), is capping overdraft fees at $5, down from $35, starting Oct. 1, 2025.
The move, targeting “junk fees,” could save U.S. consumers $5 billion annually.
The CFPB suggests banks adopt cost-based fees or offer overdraft credit lines while disclosing interest rates.
Industry groups oppose the rule, and its future is uncertain under a Republican-controlled Congress and the incoming Trump administration.
As someone who has been struggling lately, I could really use this… I have to dip just to make ends meet and it’s $30 for every transaction. I try to plan it so the one big bill takes the hit to minimize impact.
If you have the option, I’d recommend switching to a credit union.
My CU has a small line of credit set up for me that protects from overdraft fees if I make a mistake. Should I ever overdraft, it’ll deduct from that instead, and then I’m on the hook for mere pennies instead of dollars.
My bank actually offered me something similar. I didn’t take them up on it because I know it’s subjected to credit approval, and I am in absolutely no position to be approved anyway. Plus, this line is great for this, but it can also be used for other things, and I honestly don’t need the temptation to further my issues.