U.S. banks are once again raking in billions from overdraft and non‑sufficient‑funds (NSF) fees. According to a Motley Fool Money analysis of Federal Financial Institutions Examination Council (FFIEC) Call Report data, banks with more than $1 billion in assets collected $2.96 billion in these fees during the first half of 2026. That figure puts the industry on pace to match the roughly $6 billion earned in 2024 and 2025.

How the numbers compare

The average overdraft fee remains about $35, as reported by the Consumer Financial Protection Bureau (CFPB). The data show a slight rebound after a sharp decline between 2019 and 2023, when many large banks cut or eliminated their overdraft charges. From 2019 to 2023, industry revenue fell by nearly half, driven by pandemic‑related spending changes and a wave of fee reductions.

Since that dip, overdraft and NSF revenue have risen modestly for two straight years. A small group of the largest banks drives most of the earnings. JPMorgan Chase alone accounted for about 19 % of all reported fees in the first half of 2026, the highest share among the 512 banks covered.

Big banks’ fee trends

Three institutions dominate the swing in industry revenue:

• JPMorgan Chase – Charged $34 per overdraft item, capped at three fees per day. Its fee revenue fell from $2.06 billion in 2019 to $1.1 billion in 2023, then edged up to $1.11 billion in 2025 and is projected to stay near that level in 2026.
• Wells Fargo – Collected $1.7 billion in 2019, dropping to $937 million in 2023 and remaining roughly flat at $928 million in 2025.
• Bank of America – Cut its overdraft fee to $10 per item, capped at two fees per day, after a $35 charge prior to May 2022. Its fee revenue fell dramatically from $1.56 billion in 2019 to $140 million in 2023, then rose slightly to $152 million in 2025.

Who is most affected?

The Federal Reserve reports that 12 % of Americans paid an overdraft fee in 2025. Lower‑income, younger, Black and Hispanic consumers were more likely to incur a fee, reflecting lower average checking‑account balances among those groups.

Practical steps to avoid fees

Financial experts stress that the simplest way to avoid overdraft charges is to monitor balances before spending. Many banks now offer real‑time low‑balance alerts via mobile apps. As Motley Fool Money personal‑finance analyst Joel O’Leary advises, “Set up a low‑balance alert and treat that number like it’s your actual zero. A heads‑up text that says ‘hey, you’re getting close’ gives you a chance to react while it’s still a small deal instead of a fee.”

In addition to alerts, maintaining a basic budget and reviewing account activity frequently can catch potential overdrafts that an alert might miss. Some institutions also provide no‑overdraft‑fee accounts, which waive the charge even for accidental overdrafts. O’Leary notes that many of the best no‑fee accounts are offered by online banks, which typically have no monthly account fees and robust mobile platforms.

What this means for consumers

While a handful of large banks continue to generate substantial fee revenue, the overall trend shows that consumers who stay informed and use available tools can significantly reduce or eliminate these charges. As the industry’s earnings level out, the onus is on individuals and families to protect their hard‑earned money by leveraging technology, budgeting wisely, and considering fee‑free banking options.

Original reporting: El Paso News (HLL/CB) — read the source article.