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Overdraft charges appear to be creeping higher after a two-yearpause that began when the Federal Reserve ordered banks to get customers" permission before imposingthe fees, according to the Consumer Federation of America. In its annual survey of overdraft fees, the CFA said changes announced by two of thelargest domestic banks -- U.S. Bank of Minneapolis and Fifth ThirdBank of Cincinnati -- show "rates are again on therise" from an average of $35 per transaction. The survey, released Thursday, looked at overdraft fees andpractices at the 14 largest U.S. banks. U.S. Bank and Fifth Thirdwere among five that charge "tiered" fees, which varydepending on how many overdrafts are incurred in a twelve-monthperiod. Later this month, Fifth Third will start charging $37 per overdraftafter a $25 fee is assessed for an initial overdraft transaction. This replaces current fees of $33 for the second, third, and fourthoverdrafts in a 12-month period. U.S. Bank will charge $15 for an overdraft transaction that is $15or less, and $35 for any overdraft over that amount. It currentlycharges $10 if the overdraft is $20 or less, and $33 per item ifthe overdraft is more than $20. Nearly two-thirds of banks pile on second or per-day fees ifconsumers do not repay overdrafts immediately, the consumer groupsaid. It noted, however, that Fifth Third is dropping its sustainedoverdraft fee that adds $8 per day after an overdraft remainsunpaid for three days. Fifth Third spokeswoman Stephanie Honans said the study accuratelyreflects the planned changes at the bank."Additionally," she said in an email, "we do notcharge an overdraft fee when a customer"s account isoverdrawn by $5 or less at the end of our business day." In a statement, U.S. Bank said the higher overdraft charges stemmedfrom a review of all the bank"s deposit fees, which hadresulted in the elimination of other fees such as early accountclosure fees on checking and savings accounts. "We offer a lower fee for overdrafts caused by small dollartransactions and we don"t charge a fee if the account isoverdrawn less than $10," the bank said. "We havenumerous other features that help consumers manage their accountsand avoid fees, including email and mobile alerts and automatictransfer of funds from a savings or other account to avoidencountering a negative balance." Only three of the big banks -- Bank of America , Citibank , and HSBC -- do not permit customers to incur overdraft fees on debit-cardpurchases, the Consumer Federation study said. Citibank and HSBCalso prevent overdraft fees triggered at automated teller machines. The other 11 largest banks encourage customers to opt-in to payoverdraft fees on very small purchases, the survey said. "Consumers can be charged up to $370 in one day, according tothe maximum fee and daily limit fee policies that bankshave," Consumer Federation director of financial servicesJean Ann Fox said in a news release. Calling such assessments "staggering," she said: "Bank overdraftloans are a form of payday lending." RELATED : Consumer Financial Protection Bureau will investigate overdraftfees Fed restricts overdraft fees on bank cards Bank fees take hefty toll. The e-commerce company in China offers quality products such as Kids Plaid Shirts Manufacturer , Toddler Graphic Tees, and more. For more , please visit Toddler Graphic Tees today!
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