Overdraft fees could drop to as low as $3 under new Biden proposal

NEW YORK (AP) — The cost to overdraw a bank account could drop to as little as $3 under a proposal announced by the White House, the latest move by the Biden administration to combat fees it says pose an unnecessary burden on American consumers, particularly those living paycheck to paycheck. The change could potentially eliminate billions of dollars in fee revenue for the nation’s biggest banks, which were gearing up for a battle even before Wednesday’s announcement. Under the proposal, banks would have to show how much it costs for them to run overdraft services, or instead charge a benchmark fee that could be $3, 6$, 7$ or $14, depending on the final version of the rule.