A short talk (YouTube video) by Ramit Sethi criticizing bank overdraft fees as predatory. He explains how small overdrafts (e.g., $1.50) are often silently approved and trigger large fees (commonly $35), which can quickly accumulate and negate a consumer’s annual interest earnings; he also notes litigation has targeted these practices.
Overdraft fees One of the biggest scams in banking. Let's say you buy groceries the day before you get your paycheck and accidentally overdraw your account by $1.50. Now, instead of silently declining the transaction or giving you a warning, your bank often silently approves it. And then what do they do? Well, they silently charge you a $35 overdraft fee. You buy a coffee after you leave the shop. That's another silent $35 fee. Some people can rack up 100 plus dollars in fees in a single day. This has been subject to tons of litigation, by the way. Remember, one overdraft fee from a brick and mortar bank can wipe out your entire interest for the entire year.
