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House Votes to Overturn Overdraft Fee Limit. Here's How to Avoid the Penalty

The CFPB had previously capped fees at $5 but you can still find banks that don't charge them.

Headshot of Tiffany Connors
Headshot of Tiffany Connors
Tiffany Connors Former Staff Editor
Tiffany Wendeln Connors was a senior editor for CNET Money with a focus on credit cards. Previously, she covered personal finance topics as a writer and editor at The Penny Hoarder. She is passionate about helping people make the best money decisions for themselves and their families. She graduated from Bowling Green State University with a bachelor's degree in journalism and has been a writer and editor for publications including the New York Post, Women's Running magazine and Soap Opera Digest. When she isn't working, you can find her enjoying life in St. Petersburg, Florida, with her husband, daughter and a very needy dog.
Tiffany Connors
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Viva Tung, CNET / Getty Images

The US House voted to overturn a $5 cap on bank overdraft fees. President Trump is expected to sign the measure.

It's part of the Trump administration's efforts to overturn Biden-era regulations enacted through the government's consumer watchdog, the Consumer Financial Protection Bureau, which has mostly been dismantled.

Overdraft fees are penalties a bank can charge if you overdraw on your account. The CFPB put the $5 cap in place in December, stating that the rule could save consumers up to $5 billion in annual overdraft fees.    

Currently, there is no limit on what banks can legally charge for overdraft fees, although you can find banks that don't charge any overdraft fees.

About the Author

Headshot of Tiffany Connors
Former Staff Editor
Former Staff Editor

Tiffany Wendeln Connors was a senior editor for CNET Money with a focus on credit cards. Previously, she covered personal finance topics as a writer and editor at The Penny Hoarder. She is passionate about helping people make the best money decisions for themselves and their families. She graduated from Bowling Green State University with a bachelor's degree in journalism and has been a writer and editor for publications including the New York Post, Women's Running magazine and Soap Opera Digest. When she isn't working, you can find her enjoying life in St. Petersburg, Florida, with her husband, daughter and a very needy dog.