Will Overdrafts be Vaccinated in 2021?
The coronavirus is changing how overdrafts behave, are used and priced. Learn how and why in the report below.
Happy Holidays, Mike
The Era of High Priced Overdrafts & Low Limits is Coming to an End
Lake Forest, IL (December 18, 2020) According to the Moebs OD Survey for the 1st time more banks price overdrafts under $20 than credit unions, and some have large asset sizes, overall, more depositories are moving to a lower OD price.
So, banks are now realizing low OD price not only benefits the customer, but also their bottom line too. All five depositories shown have OD revenue three times the normal depository overdraft revenue level. COVID is driving overdraft prices lower. Working at home is giving people time to rethink banking and checking particularly.
<image008.png>$30 is the current median overdraft price, average is $30.49 from Moebs $ervices, an economic research firm who surveyed thousands of depositories in November.
OD revenue is down to $30.8 Billion from $34.6B for the same 3rd Quarter in 2019.
Furloughed workers and those without jobs are watching every penny. OD fees cannot be afforded. Plus, many workers have stored stimulus money in checking causing fewer overdrafts. Yet, with unemployment at 6.7% most workers are back on the job signaling a slight uptick in overdraft volume. Vaccines will stimulate the economy and OD activity. READ FULL ARTICLE
Written By: m.moebs
Date Posted: 12/19/2020
Number of Views: 440