Is there a cap on overdraft fees? How are they determined?

Back to learn

Is there a cap on overdraft fees? How are they determined?

Rounding it up

  • Overdraft fees are, in essence, very expensive loans; consumers are able to spend slightly more than the money in their account for a fee.

  • The government does not cap overdraft fees and instead, relies on the banks to remain competitive and cap themselves.

  • Proper budgeting, shopping around, and linking to other accounts can help you avoid overdraft fees.

  • There are products, like Cover, that offer a more affordable alternative to overdraft protection.

7 min read

Dan Bucherer
#overdraft#loans#fees#budgeting

Dan Bucherer

Dan is a runner and writer living in the Washington, D.C. area, where he currently works for a financial services trade association as the Communications Director.

Recent Articles

What effects do low interest rates have on the economy?

Should your spending change when interest rates rise?

Which assets do well with rising interest rates?

How do interest rates impact the stock market?

Why Instant Pay is becoming more popular during inflation

What are the pros and cons of inflation for consumers?

Related articles

What are overdraft fees & how are they calculated?

9 mins

Ally Streelman

If you’ve been charged an overdraft fee on your account, we’ll help you figure out why and how to avoid it next time.


What are overdraft fees & how are they calculated?

9 mins

Ally Streelman

If you’ve been charged an overdraft fee on your account, we’ll help you figure out why and how to avoid it next time.


#overdraft fees

#budgeting

#minimum balance

#auto-pay

logo.koho

Company

AboutCareersCultureGamerLearnPartnersTravelStatus

Connect

The KOHO Mastercard® Prepaid card is issued by KOHO Financial Inc. pursuant to license by Mastercard International Incorporated. Mastercard and the circles design are registered trademarks of Mastercard International Incorporated.

By using this website, you accept our Terms and Conditions. Follow these links for more information on our Privacy Policy, Accessibility Policy and Multi-Year Accessibility Plan. © 2022 KOHO Financial Inc.