How do banks make money from consumers? Surprise, surprise: it turns out that miscellaneous fees are a massive revenue driver for the retail banking industry. Overdraft fees alone constituted a whopping 8% of total net income in 2015—at least for big banks with over $1 billion in deposits, which are required to disclose their sources of revenue to the Consumer Financial Protection Bureau.
Overdraft and ATM fees are the worst offenders by sheer volume, but banks subject their customers to tons of other fees. No one’s saying that banks aren’t entitled to make a buck, but some of these fees seem questionable, to say the least. We made an infographic to break down all the ways your bank can charge you:
There are ongoing discussions at the Consumer Financial Protection Bureau about whether regulators should cap these fees. We would applaud that kind of change, but for now, when it comes to overdraft fees, Trim can help get your money back. Sign up for Trim to monitor your spending and put ridiculous fees back in your pocket.