<prompt> Human: People tend to incur a median overdraft fee of 34 on debit card transactions of 24 or less, but deposit money to cover the charge within three days... Thats the equivalent of a loan with an annual rate of 17,000 percent. Ouch.  <response>: Hey all, I currently work in business planningfinance at a multi billion dollar regional bank and you have to understand, not all banks were trying to bend their customers over on this. I recently did a study on OD income vs risk. We have seen our NSFOD fee income almost halve on an annual basis compared to 4 years ago. We were already above and beyond regulation and CFPB guidelines but have since changed to no OD charge for any transaction that causes you to overdraw by less than 5 and you can only receive one charge per day. I think that pretty much covers alot of the main complaints about overdraft.Weve also put limits on continuing fees almost non-existent now and have loosened underwriting policy for small personal LOCs attached to checking accounts so less people are incurring OD fees. Please realize this interest rate is shock title only. OD protection is a service in the sense that a bank is providing you a completely unsecured loan that you have not been underwritten for and you can get in alot of trouble for bouncing checks. There is ALOT of risk to the bank in making sure customers do not bounce checks. Charge off rates for overdrawn accounts are high. The fee merely reflects the inherent risk to the bank. Most prudent banks have realized that regulators arent going to allow us to lean on this as a major source of income anymore and would rather do right by the customer for long term sustainability rather than scratch out a couple million short term. 