UW Credit Union drops overdraft fees to $5
MADISON, Wis. (WMTV) -UW Credit Union has announced a cut to overdraft and nonsufficient funds fees—dropping them from a $30 charge to a $5 charge.
The new policy went into effect Tuesday, applying to all accounts. UW Credit Union says the move supports a national movement to create more equitable banking.
According to a FinHealth Spend Report, low income households are nearly twice as likely to overdraft than other households.
“Everyone comes up short sometimes,” said UW Credit Union President & CEO Paul Kundert. “From a student managing their first bank account to families who lose track of their current balance, our goal for all members is to help them accumulate wealth, not erode it.”
Kundert added that though some fee is necessary to discourage over-drafting, it should be reasonable.
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