Reimagining Overdraft Fees in Minnesota Saves $5 Million in Six Months for Affinity Plus Members
Affinity Plus Federal Credit Union (Affinity Plus) reported today its decision last summer to eliminate non-sufficient fund fees (NSF) and reduce overdraft fees has saved members nearly $5 million in its first six months—with low-moderate income individuals benefitting most.
- Affinity Plus Federal Credit Union (Affinity Plus) reported today its decision last summer to eliminate non-sufficient fund fees (NSF) and reduce overdraft fees has saved members nearly $5 million in its first six months—with low-moderate income individuals benefitting most.
- “It’s a bold approach, but these early results show that cutting non-sufficient funds fees and reducing overdraft fees is the right thing to do: it’s good for our members and it’s good for business,” said Dave Larson, Affinity Plus CEO.
- The $100 allowance was used by members across all demographics; however, those who benefitted most were lower income, lower credit tier, minority and younger members.
- The move to cut fees is also fueling explosive growth for Affinity Plus, which surpassed a milestone of 250,000 members in March and is now one of the fastest-growing financial institutions in Minnesota.