U.S. banks that meet the Federal Financial Institutions Examination Council’s $1 billion‑asset threshold reported $2.96 billion in combined overdraft and non‑sufficient‑funds (NSF) fees for the first half of 2026, according to a Motley Fool Money analysis of FFIEC Call Report data. The average overdraft charge remains about $35, a figure that aligns closely with what the largest banks actually assess.
Who’s driving the revenue?
JPMorgan Chase alone accounted for roughly 19% of the reported fees, making it the top collector among the 512 banks covered. Wells Fargo and Bank of America round out the three institutions responsible for most of the swing in overdraft and NSF revenue since 2019. While Bank of America slashed its fee to $10 per overdraft item in May 2022, Chase still charges $34 per incident, capped at three fees per day.
Trends over the past years
Overdraft and NSF revenue fell sharply from 2019 to 2023, dropping by nearly half as several major banks eliminated or reduced fees during the pandemic. After that decline, the industry has seen modest growth for two consecutive years, putting the 2026 six‑month total on pace with the $5.9‑$6 billion generated in 2024 and 2025.
Who is most affected?
Federal Reserve data show that 12% of Americans paid an overdraft fee in 2025. Lower‑income households, younger adults, and Black and Hispanic consumers were disproportionately represented among those who incurred fees, reflecting lower average checking‑account balances in these groups.
Practical steps to keep more of your money
Financial‑expert Joel O’Leary of Motley Fool Money advises a proactive approach: set up low‑balance alerts and treat the warning as your true zero balance. Real‑time text notifications give you a chance to adjust spending before a fee is assessed.
Beyond alerts, maintaining a simple budget and regularly reviewing account activity can catch potential overdrafts that an alert alone might miss. For frequent overdrafters, consider switching to a no‑overdraft‑fee account. Many online‑only banks offer such products with no monthly maintenance fees and robust mobile apps, allowing you to manage your money from your phone while avoiding costly penalties.
What the data doesn’t capture
The FFIEC reports only include banks with assets over $1 billion, so the true national total is likely higher. Smaller community banks and credit unions are exempt from reporting, meaning their overdraft collections are not reflected in the $2.96 billion figure.
Understanding how banks generate revenue from overdraft fees underscores the importance of personal financial stewardship. By leveraging technology, staying aware of account balances, and choosing fee‑friendly banking options, families can protect their hard‑earned dollars from unnecessary charges.
Original reporting: KEYT (Ventura/Santa Barbara) — read the source article.
