Younger generations pay the most in bank fees, report finds

Bank customers between the ages of 18 and 41 are paying more than three times as much in ATM and overdraft fees compared to baby boomers with checking and savings accounts, according to a Bankrate survey released Tuesday. 

Baby boomers pay an average of $2 a month in bank fees, while Gen Xers — people ages 42 to 57 — pay $4 on average, the survey found. By comparisons, the typical millennial pays $16 a month, while Gen Zers pay $19. The poll also found that younger customers are much more likely to have the type of accounts that charge monthly fees. 

Bank overdraft fees in the U.S. have hit an all-time high. In 2021, the average fee for overdrawing your account rose to $33.58, a 22-cent increase over the past two years, according to a different Bankrate analysis. Among major U.S. cities, people living in Baltimore, Houston and Philadelphia paid the highest overdraft fees last year at more than $35. Cincinnati, Los Angeles and St. Louis paid the lowest fees at around $31.