A new CFPB rule could lower overdraft fees to just $5 - here's what that could mean for checking account customers

Overdraft fees can cost upwards of $40, which can be expensive when you're already low on cash. A new CFPB rule could cap overdraft fees to $5 for very large institutions starting next October, providing immediate relief for those struggling with financial burdens. This measure aims to combat the financial strain that overdraft fees impose, especially on low-income consumers.

The Consumer Financial Protection Bureau recently finalized a rule that would limit large financial institutions - institutions that have $10 billion or more in assets - from charging high overdraft fees. The rule, set to take effect on October 1, 2025, is crucial for consumers to monitor, as it directly impacts their banking fees and overall financial health.

If you have a checking account with a large national bank or credit union, the CFPB's recent rule could likely affect you. Major institutions such as Bank of America and Wells Fargo might adjust their overdraft policies due to this regulation, highlighting the importance of selecting a bank that aligns with consumer financial well-being.

Read at Business Insider