Tuesday, March 28, 2017

Median CU Overdraft Fees Almost Doubled Since 2000

The median overdraft fee at a credit union has almost doubled since 2000.

According to research from Moebs $ervices, the median overdraft fee at credit unions is $29, up from $15 in 2000.

In comparison, the median overdraft fee at banks rose by 50 percent over the same period from $20 to $30.

When the overdraft fee is controlled for inflation, Moebs $ervices found that only 8 percent of the credit unions charged an overdraft fee that is less than or equal to the inflation-adjusted overdraft fee. The inflation-adjusted overdraft fee for credit unions would equal $20.86 per item.

Michael Moebs stated: "Credit unions have an image of being more consumer friendly. When taking a look at the history of overdraft prices, credit unions have been increasing their price at a much quicker rate and now almost on par with banks."

Read the MarketWatch article.

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