LAKE BLUFF, Ill.-Overdraft usage at all financial institutions dropped to its lowest point in the last 14 years at the close of the second quarter, according to a new study by Moebs $ervices.
According to the report based on Q2 Federal Reserve data, consumer overdrafts declined 2.8% over the first quarter to seven overdrafts per checking account per year. Consumer OD totals were 6.8 per account in 1999. Michael Moebs, economist and CEO at Moebs $ervices, attributed the decline to consumers becoming much more frugal. The fact that the decline has occurred two quarters in a row has the economist concerned about the future of overdrafts for the next 18 months.