U.S. banks collected about $1.6 billion in overdraft fees in the third quarter, the most in four years. Reuters calculated the total and reported that bank data provider KBRA Financial Intelligence confirmed it. Overdraft fee revenue rose 9.4% from the prior quarter.
Below: the overdraft fee revenue figures, which banks drove them, and what it may mean for customers. Checklist items are The Jolt Journal’s own suggestions, not bank or regulator guidance.
Overdraft fee revenue: the headline numbers
| Measure | Reading | Source |
|---|---|---|
| Q3 2026 overdraft fee revenue | About $1.6 billion | Reuters via Investing.com |
| Change from the prior quarter | Up 9.4% | Reuters |
| Change from Q1 2025 | Up 23% | Reuters |
| Rank | Highest quarterly total in four years | Reuters |
| Versus all-time highs | Still well below | Reuters |
- Reuters said Q1 2025 was an all-time low for collections.
- The 23% rise is measured from that low point.
- By The Jolt Journal’s arithmetic, the prior quarter was roughly $1.46 billion and Q1 2025 about $1.3 billion.
Which banks drove overdraft fee revenue
Reuters looked at the 20 largest banks and the 50 largest lenders. A few names stand out.
| Bank | What Reuters reported |
|---|---|
| JPMorgan Chase and Wells Fargo | Together charged $590 million in Q3, about equal to the rest of the 20 largest banks combined |
| JPMorgan Chase | Overdraft fee revenue up 32% since Q1 2025 |
| Wells Fargo | Overdraft fee revenue up 17% since Q1 2025 |
| Bank of America | $55 million, up 49% since Q1 2025; it cut its fee from $35 to $10 in 2022 |
| Citi | Eliminated overdraft fees in 2022 |
| First Citizens (Raleigh, N.C.) | Up 200% since Q1 2025, the largest rise among the 50 largest lenders; did not respond to Reuters |
By The Jolt Journal’s arithmetic, JPMorgan and Wells Fargo account for about 37% of the $1.6 billion. A JPMorgan spokesperson told Reuters that 75% of transactions on overdrawn accounts carry no fee. Reuters said both banks have added grace periods and other limits.
A timeline of overdraft fee revenue and policy
| When | What happened | Source |
|---|---|---|
| 2022 | Citi eliminated overdraft fees; Bank of America cut its fee from $35 to $10 | Reuters |
| December 2024 | The CFPB finalized a rule for banks and credit unions with more than $10 billion in assets, with a $5 fee option | CFPB |
| Q1 2025 | Overdraft fee revenue hit an all-time low | Reuters |
| Spring 2025 | Congress repealed the rule; Reuters said the resolution was signed in May | Congressional Research Service, Reuters |
| Q3 2026 | About $1.6 billion collected, a four-year high | Reuters |
| November 2026 | Midterm results renew talk of CFPB oversight | Reuters |
The pattern is a low point, a rule that never took effect, and a steady climb. Reuters did not say how much of the climb came from higher fees and how much from more overdrafts.
Why overdraft fee revenue is rising
Reuters pointed to several possible causes. It did not name one.
- Rule rollback. The CFPB’s December 2024 rule let covered banks cap overdraft fees at $5. It was due to take effect on October 1, 2025. The Congressional Research Service said Congress repealed it, so it never took effect.
- Weaker oversight. Reuters said the administration has cut CFPB staff and scaled back enforcement. Those moves face court challenges.
- Consumer strain. Reuters said inflation-adjusted wages have fallen since April.
- Expert view. Adam Rust of the Consumer Federation of America tied the rise to changes at the CFPB, per Reuters.
Mark Zandi, chief economist at Moody’s Analytics, told Reuters: “I wonder if increasing overdrafts may be a leading indicator of developing credit problems.” Reuters added that Moody’s reports auto loan and credit card delinquency rates have been roughly flat for about a year.
What the overdraft fee revenue data does not show
- It does not show how many customers paid. A small group can pay many fees.
- It does not show why customers overdrew their accounts.
- Reuters said overdraft totals alone do not prove broader credit trouble.
- The CFPB did not respond to Reuters’ request for comment.
The totals also leave out fees that are not labeled overdraft, such as returned-item charges, which some banks list separately.
What may happen next to overdraft fee revenue
| Possible shift | What Reuters reported |
|---|---|
| Congressional oversight | Democrats, who won this month’s midterms, have pledged to examine CFPB oversight and enforcement when the new Congress convenes |
| Bank caution | J.V. Proesel of Moebs Services said most banks his firm advises are reluctant to add fees they may have to reverse later |
| Expected rule change | Proesel said some lenders expect another regulatory shift |
None of this is a forecast. The Congressional Research Service noted that, after a repeal, the CFPB may not issue a rule in substantially the same form unless a later law allows it. Rules and bank policies can change with little notice.
What one overdraft costs at different banks
The next table is The Jolt Journal’s own arithmetic, using the fee levels Reuters reported. It shows why the bank matters. It assumes a $20 debit purchase that overdraws an account and a fee charged in full.
| Fee level | Fee | Fee as a share of the $20 purchase |
|---|---|---|
| No overdraft fee (Citi’s policy since 2022) | $0 | 0% |
| Bank of America’s reduced fee | $10 | 50% |
| The former Bank of America fee | $35 | 175% |
Reuters said Wells Fargo also told it that about three in four transactions on overdrawn accounts carry no fee. Whether a given purchase is charged depends on the bank’s grace period, balance rules and the account type.
What customers can do about overdraft fee revenue
These steps are The Jolt Journal’s suggestions, not advice. The site’s guide to overdraft fees and how opt-in works covers the rules in more detail.
- Find your bank’s fee. It is in the fee schedule. It can range from nothing to $35 per item.
- Check your opt-in status. Ask what your account does when a debit card purchase exceeds the balance.
- Turn on low-balance alerts. A text before the balance runs out costs nothing.
- Link a savings account. Some banks cover a shortfall from savings for a smaller fee or none.
- Ask about grace periods. Reuters said JPMorgan and Wells Fargo offer some.
- Compare accounts. The site’s comparison of Chime, Varo and Current includes overdraft terms, and its list of the best online banks can help narrow the search.
Editor’s take
Editor’s take: the overdraft fee revenue rise is real, but it comes from a very low base. Fees are up 23% since Q1 2025 and still below past highs. The split among banks is the more useful detail. Citi charges nothing and Bank of America charges $10, while others still lean on the fee. A customer’s bank choice matters more than the national total.
This article is for general information, based on a Reuters report published November 13, 2026, the CFPB, the Congressional Research Service and bank statements quoted in Reuters. It is not financial advice. Figures may be revised.
