Wednesday, August 31, 2016

Banks More Likely to Have Consumer Friendlier OD Features than CUs

A recent study by Moebs $ervices found that banks have more consumer friendly overdraft (OD) features than credit unions.

The study looked at the De Minimis and Daily Cap features of 3,800 credit unions and banks.

De Minimis means that when a transaction causes an account to become overdrawn with a very minimal negative balance, the account will not be charged an overdraft fee.

A Daily Overdraft Cap limits the number of overdraft fees that will be charged in one day.

Moebs $ervices found that 33.8 percent banks had De Minimis features versus 12.9 percent of credit unions.

In addition, Moebs $ervices found that 29.2 percent of banks had Daily Caps on the number of overdraft fees. However, only 7.4 percent of credit unions used Daily Caps.


  1. Great spin, but lousy analysis. No mention of fee amounts? Transaction sorting? Alternate overdraft options, such as savings transfers, lines of credit and associated costs?

    Without such considerations, the declaration of which is consumer friendly is utterly meaningless and misleading. I'm disappointed that you would air such fluff.

    1. There have been plenty of cus that have been transaction sorting, etc.
      In the end there is a de minimus difference between banks and credit unions once you get above the small ones.
      Not just on this but everything.
      Except one pays federal tax on income.

  2. Can we get a link to the study? I find it hard to believe this over arching conclusion that banks have friendlier OD features than CUs can be drawn from a legitimate study.

    1. Please provide me with your e-mail and I will send you the press release about the study.



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