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Overdraft Fees Hurt Members…So We Got Rid of Them

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Last year, banks and credit unions charged American consumers over $30 billion in overdraft fees. According to a 2020 Bankrate.com survey, the average overdraft fee was $34. That is a new record high, rising for the 20th time in the past 22 years.

But what is even more striking about overdraft fees is that they disproportionally hurt those that are most vulnerable. People living check-to-check, the Black and Hispanic communities, countless families still struggling financially from the pandemic, and individuals overwhelmed by other stresses as a result of Covid-19 to keep track of account balances, are the ones most likely harmed by overdraft fees.

The bottom line is that overdraft fees hurt our members. And family doesn’t take advantage when you need them most. That is why we decided to do what we always do — put the financial needs of our members above all else.

We are excited to announce that we are taking the industry-leading step to eliminate overdraft and non-sufficient funds fees for members as of October 1, 2021. Devidot Credit Union will be the only credit union in South Florida and one of the few financial institutions nationally to fully eliminate these fees. It is a significant step for the credit union but we felt strongly that this was the right thing to do. It is inconsistent with our mission as a credit union to continue to charge these fees when it is clear they harm the financial wellbeing of our members.

By eliminating overdraft and non-sufficient funds fees, we’re putting almost $1 million annually back in our members’ pockets. We are proud to help our hard-working members keep more of their money for the things that matter most.

With the elimination of overdraft and non-sufficient funds fees, it is our hope that we are making banking more accessible, inclusive, and forgiving.

If you know anyone that could benefit from not only fee-free overdrafts but also having a trusted partner to help guide them along each step of their financial journey, please tell them about us and your experience as a member. If they join the DCU family, you both could receive $70 through our Refer a Friend program.

As always, thank you for being a valued member of our family. To learn more about fee-free overdrafts click here.