DES MOINES, Iowa–Affinity Credit Union said it has reduced its ATM and debit card purchase overdraft fees to $15, and completely eliminated overdraft fees for debit card transactions of $5 or less.
The $140-million ACU noted that in comparison, the average overdraft fee in the U.S. is $33.58, according to a recent Bankrate.com study.
“Our members should not have to worry about paying an overdraft fee just to buy milk for their child,” said Jim Dean, Affinity Credit Union CEO. “Proactively eliminating fees is not what most financial institutions would do, but we are not most financial institutions.”
Affinity Credit Union said it has become one of the only financial institutions in Iowa to reduce and eliminate fees associated with overdrawn accounts. The new fee structure goes into effect Nov. 1.
In announcing the move, the credit union said excessive fees can lead to prolonged negative account balances, with each fee making it harder and harder to escape the cycle of debt. These fee adjustments reflect Affinity’s desire to help those who may be struggling to break that cycle, the CU added.
Reducing the Worry
“We’ve all struggled with finances at some point,” said Dean. “When money is tight, we want our members to be able to put gas in their car and buy groceries without having to worry about excessive fees.At its core, this is a decision that was made in the best interest of our members and community, not our bottom line. Ultimately, our goal is to live our mission statement of Building Better Lives and we are doing everything within our power to help our members do just that. By reducing fees, we are putting more money in our members’ pockets, helping them take care of their families and build wealth for the future.”