Banks Rake In Billions from Overdraft Fees, Despite Industry Efforts to Reform

Banks in the United States made an estimated $3 billion from overdraft fees alone in just six months, according to a recent analysis of Federal Financial Institutions Examination Council (FFIEC) Call Report data. This figure represents the combined revenue from overdraft and non-sufficient funds (NSF) fees collected by 512 banks with more than $1 billion in total assets.

The average overdraft fee is around $35, as reported by the Consumer Financial Protection Bureau (CFPB). Major banks such as JPMorgan Chase and Wells Fargo generate a significant portion of this revenue. In fact, JPMorgan Chase alone accounted for about 19% of all reported overdraft and NSF fees in the first half of 2026.

A small number of large banks dominate the industry's overdraft and NSF fee revenue. For example, Bank of America's overdraft and NSF revenue fell from $1.56 billion in 2019 to $140 million in 2023 after it lowered its overdraft fee and dropped its NSF fee entirely.

To avoid paying these fees, experts recommend checking account activity regularly and keeping a basic budget to stay on top of income versus spending. Some banks offer no-overdraft-fee accounts that waive the fee for accidental overdrafts.