Bank overdraft fees hit record highs during pandemic

Overdraft fees that banks charge for withdrawals exceeding funds in a checking account grew to their highest amount ever last year, as American households struggled financially during the coronavirus pandemic. 

The average fee for overdrawing an account was $33.58, a 22-cent increase over the past two years, according to a Bankrate survey released Wednesday. 

Among major U.S. cities, people living in Philadelphia, Baltimore and Houston last year paid the highest overdraft fees at more than $35. Cincinnati, Los Angeles and St. Louis paid the lowest fees at around $31, the survey revealed.