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Overdraft fees hit a record

Citi Reports Quarterly Profit Of 4.4 Billion

People walk by a Citibank office in midtown Manhattan in New York City.

If you’ve overdrawn your checking account lately, you may have noticed a jump in the penalty. A recent study from economic research firm Moebs Services says the median overdraft charge reached $30 last year—up from $29 the year before.

Banks say they’re trying to make up for lost revenue. Since 2010, customers have to opt in to overdraft plans, which let you buy that $4 latte even when you have just $2 in your account. That’s cut into the fees banks can collect. Moebs says people are also being more careful not to spend money they don’t have.

About the author

Amy Scott is Marketplace’s education correspondent covering the K-12 and higher education beats, as well as general business and economic stories.

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