Income & Expense
Service Charges on Deposit Accounts
Also known as Deposit Service Charges
Service Charges on Deposit Accounts captures monthly maintenance fees, overdraft and NSF fees, ATM surcharges, and related deposit-related fees. Historically the largest single line of fee income for community banks.
Formula
The line captures monthly maintenance fees on consumer and business accounts, overdraft (OD) and non-sufficient-funds (NSF) fees, foreign ATM fees, account-closure fees, paper-statement fees, wire-transfer fees, and similar deposit-administration charges. Card interchange income is reported separately.
Why it matters
For community banks, deposit service charges have historically been the largest single fee-income line, often $5-15M annually for a $1B bank. The 2024 CFPB junk-fee rules capped overdraft fees at large banks (over $10B) at $5, cutting overdraft revenue 60-80% for affected institutions and pressuring smaller bank fee structures.
How to interpret
Service charges / total deposits between 30bps and 80bps is typical. Above 80bps signals heavy reliance on overdraft and similar fees that may face regulatory pressure; below 20bps signals a low-fee deposit model (typical of digital-first banks).
Thresholds
| Range | Label | Interpretation |
|---|---|---|
| > 0.8% of deposits | Heavy | Substantial overdraft / NSF reliance. |
| 0.3–0.8% | Typical | Established community-bank fee structure. |
| 0.1–0.3% | Light | Low-fee deposit model. |
| < 0.1% | Minimal | Digital-first or fee-free deposit model. |
Worked example
Frequently asked
Are overdraft fees included in this line?
Yes. Overdraft fees, NSF fees, account-maintenance fees, and similar are aggregated. Card interchange and trust fees are reported elsewhere.
Which banks were affected by the 2024 CFPB overdraft rule?
Banks with over $10B in assets must cap overdraft fees at $5 (or a higher break-even amount with documentation). The rule took effect October 2025. Smaller banks face indirect pressure from competitive repricing.
Can a bank's service-charge income recover after the CFPB rules?
Some banks have introduced new product features and revenue lines to offset — small-dollar overdraft-protection programs, subscription banking, monthly maintenance fee tiers. Recovery has been partial in disclosed cases.
Sources
- FFIEC Call Report Schedule RI, Line 5.b
- CFPB Final Rule on Overdraft Lending (December 2024)
See Deposit Service Charges across 4,335 US banks
BankRegReports ranks every FDIC-insured institution by Deposit Service Charges, refreshed quarterly within 48 hours of FFIEC release.