SMITHFIELD – Navigant Credit Union, the state’s largest credit union, says it has eliminated or reduced the fees for overdrafting accounts.
The new fee structure terminates the $3 overdraft transfer fee on consumer and business accounts. The new policy also eliminates the $34 fee for returned insufficient/uncollected funds.
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While Navigant also ended the $34 fee for overdrafts of up to $9.99 paid by Navigant on consumer and business accounts, it reduced that $34 fee to $10 for overdrafts of between $10 and $99.99, and it’s now a $20 fee for overdrafts of more than $100.
“More often than not, overdrafts are the result of simple oversights like forgetting to deposit a check or transfer funds from separate accounts, and we don’t believe our members should be penalized for that,” said Navigant Credit Union CEO and President Kathleen C. Orovitz. “Our goal in everything we do is to help our members improve their financial well-being, and we are proud to be a leading financial institution in Rhode Island to roll out these protections.”
Navigant’s fee changes come as overdraft and non-sufficient funds revenue raised by financial institutions has declined since 2019 as banks moved to reduce fees in recent years. The Consumer Financial Protection Bureau said banks collected $5.8 billion in fees for overdraft and non-sufficient funds in 2023, a 50% drop from pre-COVID-19 pandemic levels.
That said, the bureau also noted that financial data in the fourth quarter of 2023 suggested that most banks are no longer significantly reducing their fees.
