In the days just before the banks started to get into the difficult waters a few years back, the banks came across a very lucrative revenue source - the poor. And with the economy fallen into a huge recession, there was no shortage of stock! In 2006, overdraft fees delivered close to twenty billion in revenue for banks, growing to more then 25 billion in 2008 and nearly 40 billion in 2012. We're talking about net profit! How the rich keep their money in the family using secret life secret insurance schemes.
There used to be times when banks either refused to cover overdrafts, and if they did they did it at no charge as a goodwill service to loyal customers. In the last decade, however, the practice changed and overdraft fees have doubled, even including an increase in the middle of the 2009 recession. The current median overdraft fee is $26, although if one just evaluates the larger Wall Street banks, the median is $33.
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