Due to recent financial regulations, banks were required to change the ways that they process transactions that create an overdraft, along with any associated fees. Many banks took their traditional overdraft policies and created an “opt-in” option for debit card transactions. Others bolstered their overdraft protection capabilities, promoting transfers from linked accounts as a way to protect against overdrafts. In this Bank Monitor report, we examine the different overdraft services offered by each bank, detailing the fees associated with each and the opt-in capabilities provided to private site users. 
 

 Every firm still has an overdraft policy that applies to non-debit and ATM card withdrawals. To cover purchases made by a debit or ATM card that might send a checking account into the red, banks are offering clients three solutions – Overdraft Coverage, Overdraft Protection and, at one firm, an overdraft-centric checking account. The fees charged to clients for overdraft services vary, both by the type of protection selected and the firm. For standard Overdraft Coverage, firms charge between $25 and $39 per incident, though some banks offer lower fees for initial overdrafts or for overdrafts below a certain threshold. For Overdraft Protection transfers, almost every firm assesses a $10 fee per transfer, and three firms also charge an annual fee for keeping linked protection to their account. Only one firm bypasses a flat fee altogether, instead charging clients based on the APR attached to the funding credit line. Other key findings include:

• Only four banks enable account holders to sign up for both Overdraft Coverage and Overdraft Protection via the private site
   
• 63% of firms waive Overdraft Coverage fees for overdrafts of $5 or less
   
• Half of all banks assess an Extended Overdraft fee, ranging from $7 to $29
   
• One bank fails to provide information about overdraft services online, instead relying on in-branch advertising and client mailings to keep customers informed of their options