- Freezing rain
Two years after most banks agreed to reduce overdraft fees, those hated fees are starting to head up again.
The Consumer Federation of America and Cincinnati Business Courier report that Fifth Third Bank and US Bank, Cincinnati's two largest banks, are both planning overdraft fee hikes.
The reports say Fifth Third will raise fees for a second overdraft from $33 to $37.
And they say US Bank will raise fees for small overdrafts from $10 to $15. It will raise the penalty for bigger overdrafts form $33 to $35.
Won't be as bad as in the past
There is good news, however. Unlike the overdraft fees of a decade ago, these won't escalate like they did in years past. Fifth Third no longer charges a rolling $8 a day fee for overdrawn accounts, and will not charge anything for overdrafts of less than $5.
But don't close your account and switch to another big bank to protest.
The Consumer Federation of America says this is happening with banks nationwide that have not raised fees in the past two years.
However, with the economy slightly stronger now, it says they are adding and raising fees where they can, as long as they are allowed under the new consumer protection laws.
As always, don't waste your money.
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