As Congress considers resolutions nullifying the CFPB’s recent Overdraft Rule, new Morning Consult data shows how much Americans appreciate current overdraft protection programs
With lawmakers considering Congressional Review Act resolutions that would nullify a controversial CFPB Overdraft rule that would effectively end overdraft protection as we know it, a new national survey conducted by Morning Consult on behalf of the American Bankers Association shows that consumers value and understand existing overdraft services offered by financial institutions.
According to the national survey, seven in 10 consumers (70%) find their bank’s overdraft protection valuable – as compared with only 14% who do not find it valuable. Eight in 10 consumers (80%) who have paid an overdraft fee in the past year were glad their bank covered their overdraft payment, rather than returning or declining payment, and 68% of consumers think it’s reasonable for banks to charge a fee for an overdraft, as opposed to only 23% who think it’s unreasonable. Three in 4 consumers view overdraft fees as reasonable when considering that large payments like mortgages or rent payments are covered and paid on time (74%) or when considering that customers are protected from late or other penalty fees if payments overdraw a customer’s account (75%).
“The survey, consistent with past national polling, shows that Americans clearly appreciate and understand current overdraft programs,” said ABA President and CEO Rob Nichols. “The CFPB’s misguided rule would put those programs at risk by implementing a government price cap on overdraft fees, making overdraft protection almost impossible to offer. We urge the Senate and the House to nullify this rule and prevent Americans from being forced to rely on less regulated and higher risk non-bank lenders for their short-term liquidity needs.”
The survey also finds that the vast majority of consumers (91%) said it is easy for them to check their account balance so that they can avoid overdrawing their account. Two-thirds of respondents (66%) are aware that customers can opt out of receiving overdraft protection at any time after they’ve accepted the service, as compared with only 8% who incorrectly believe that customers are required to stay in the program once they accept the service.
Of those respondents who are currently enrolled in overdraft protection, 85% have never seriously considered stopping or getting out of the service. Nearly three-quarters (72%) said they prefer that their bank offer overdraft protection as an option to customers whether there is a fee or not, as opposed to only 11% who prefer that their bank not offer overdraft protection at all.
Significantly, the survey shows that nearly half of bank customers (42%) would likely leave their bank if another bank offered a much lower overdraft fee. This indicates customers are not making mistakes when they access overdraft but are consciously choosing to use the product. Moreover, this suggests that community banks purportedly exempt from the CFPB’s new rule could lose customers if the rule is implemented and larger competitors are forced to reduce their overdraft fees.
The full results for today’s survey questions are as follows:
When asked “How valuable do you find the overdraft protection offered by your bank?” consumers provided the following responses:
- Very valuable – 34%
- Somewhat valuable – 36%
- Not too valuable – 8%
- Not valuable at all – 6%
- Don’t know/no opinion – 16%
When asked “Regarding the bank covering your overdraft payment, were you glad the payment was covered, or would you have preferred the bank return or decline the payment?” consumers who have paid an overdraft fee in the past year provided the following answers:
- Glad the payment was covered – 80%
- Would have preferred the bank returned or declined the payment – 17%
- Don’t know/no opinion – 3%
When asked “How reasonable is it, in your opinion, for banks to charge fees for overdrafts?” consumers provided the following answers:
- Very reasonable – 29%
- Somewhat reasonable – 39%
- Somewhat unreasonable – 14%
- Very unreasonable – 9%
- Don’t know/no opinion – 10%
When asked “Knowing each of the following, how reasonable is it, in your opinion, for banks to charge fees for overdrafts? — Overdraft protection from banks ensures customers’ large payments such as mortgages or rent payments are covered and paid on time in the event these payments overdraft a customer’s account,” consumers provided the following answers:
- Very reasonable – 37%
- Somewhat reasonable – 37%
- Somewhat unreasonable – 8%
- Very unreasonable – 4%
- Don’t know/no opinion – 14%
When asked “Knowing each of the following, how reasonable is it, in your opinion, for banks to charge fees for overdrafts? — Overdraft protection from banks protects customers from late or other penalty fees if payments overdraft a customer’s account,” consumers provided the following answers:
- Very reasonable – 35%
- Somewhat reasonable – 40%
- Somewhat unreasonable – 8%
- Very unreasonable – 5%
- Don’t know/no opinion – 13%
When asked “How easy is it for you to check your account balance, so that you can avoid overdrawing your account?” consumers provided the following responses:
- Very easy – 73%
- Somewhat easy – 18%
- Somewhat difficult – 2%
- Very difficult – 1%
- Don’t know/no opinion – 6%
When asked “To your knowledge, can customers opt out of receiving overdraft protection at any time, or are they required to stay in the program once they accept this service, or are you not sure?” consumers provided the following responses:
- Customers can opt out – 66%
- Customers can’t opt out – 8%
- Don’t know/no opinion – 27%
When asked “Have you seriously considered stopping or getting out of your bank’s overdraft protection service?” consumers enrolled in overdraft protection service provided the following responses:
- Yes – 11%
- No – 85%
- Don’t know/no opinion – 5%
When asked “Would you prefer that your primary bank offer overdraft protection even if you are charged a fee for using it, or that your bank not offer overdraft protection at all?” consumers provided the following responses:
- I prefer that my bank offer overdraft protection as an option to customers, whether there is a fee or not – 72%
- I prefer that my bank not offer overdraft protection at all – 11%
- Don’t know – 17%
When asked “How likely are you to switch banks if the new bank offered a much lower overdraft fee than your current bank (e.g., $5 fee vs. $30 fee per overdraft)?” consumers provided the following answers:
- Very likely – 19%
- Likely – 23%
- Unlikely – 19%
- Very unlikely – 23%
- Don’t know/no opinion – 16%
About the Survey
This poll was conducted by Morning Consult on behalf of the American Bankers Association from March 21-23, 2025, among a national sample of 4,475 adults split into two representative groups for specific question sets (Split Sample A n=2,274 | Split Sample B n=2,203). The interviews were conducted online and the data were weighted to approximate a target sample of adults based on age, race/ethnicity, gender, educational attainment, and region. Results from the full survey have a margin of error of plus or minus 1 percentage point.