The numbers are startling:
57 million Americans have no savings to speak of; they couldn’t even cover a $400 emergency expense.
What that means is that many people aren’t just living paycheck-to-paycheck. They’re barely getting by.
And one of the major contributing factors to this downward spiral is the growing burden of overdraft (or non-sufficient fund “NSF” bank fees) that many Americans face on a daily basis.
Quick – take this 1-minute quiz to see how much you know about these sneaky fees!
The fact is, many hard-working, well-meaning Americans are in a constant bind. Despite their best efforts, if their checking accounts don’t have enough funds in them, a quick series of basic transactions can become extremely costly. At $30+ per transaction, overdraft fees can turn things like your lunch or your child’s prescription into an exorbitant tab.
We can help you make sure overdraft fees don’t set you back. Want to learn more right now?
You pay $95 in fees, the banks make $15 Billion.
What?! Yep, you read that right.
The latest Consumer Financial Protection Bureau’s study from August 2017 shows that in 2016 several of the largest banks in the U.S. collected over $15 billion from overdraft fees alone, highlighting a prevalent issue for Americans.
Of those who do incur overdraft fees, on average they’re paying $95 per month in those fees. And that’s just the average. There are many more people who are actually paying much more than that.
This infuriating number is based on the data we uncovered between July 2015 and June 2017 on over 200,000 checking accounts among our non-prime consumers. This data revealed some additional insights about the size and frequency of overdraft fees incurred by our users.
And it’s nothing short of upsetting:
While a quarter of accounts had no NSF fees, 51% averaged 1+ NSF fee per month and 22% averaged 3+ NSF fees per month.
43% of overdrafters were charged multiple NSF fees in the same day, since each transaction can trigger a separate fee.
86% of accounts that incurred at least one NSF fee in a given month will incur additional NSF charges sometime over the next three months.
NSF fee charges most frequently occurred 3 days before a customer’s paycheck deposit.
Giving people a financial heads up.
Most people probably don’t realize this but 76% of Americans get hit with an overdraft fee each month. Overall, the data we uncovered paints a picture where overdraft and other fees are a regular occurrence for many middle class Americans and a serious impediment to their building any savings.
To address this overwhelming need, MoneyLion’s data-driven tools offer overdraft fee alerts and personalized mobile app cards that give users greater awareness of their spending habits so they can better stave off those unwanted fees.
Get rewards, not punishment.
Numerous psychological studies show that positive reinforcement helps to change behavior in a positive way. Our personal financial mobile app helps customers not just avoid overdraft fees and manage their cash flow, but also to get on a path to sustainable financial health.
Smart notifications: When a customer incurs an overdraft or other bank fees as well as face low account balances, we provide them with a clearer picture of the fee charges they could incur.
Get stronger financially: Customers get customized tips based on their unique spending habits so they can identify ways to improve their savings.
Loans that make sense: Ability to get funds as soon as same business day with multiple ways to lower their interest rates. Our loans also help our customers manage unexpected expenses that could leave them vulnerable to additional fees.
Get rewards: The more responsible our customers are, the greater their rewards. They can earn points and redeem rewards for important financial milestones: improving credit scores, making on-time payments, demonstrating low credit utilization or maintaining a positive checking account balance.
We have an even better solution in the works.
Imagine a day when you don’t need to stress about the unexpected expenses that pop up in your life. Just picture no longer having to worry about building your savings, much less even thinking about saving money. That’s because someone else will help take care of that for you.
Stay tuned. There’s a very bright light at the end of the overdraft fee – and saving money – tunnel. And we think you’re going to love what MoneyLion has in store for you.
See the exciting teaser about what you have in store for you (and get on the waiting list!)