In a move that’s giving some serious side-eye to the banks, the Biden administration just slapped a new rule on overdraft fees, because apparently charging people $35 for being broke is a little too cutthroat, even by American capitalist standards.

Yes, you heard it here first: the White House is not letting greedy banks feast on your limited funds anymore! President Biden has declared these fees ‘exploitative’—which, surprise, surprise, they are—especially when depositing a $3 coffee can somehow lead to a $30 nightmare. How do banks even sleep at night?

So what’s the new game plan? Starting October 2025, the banks will have three choices for overdraft fees: charge a $5 flat fee (which, let’s face it, is still annoying), cover their costs and losses (because apparently they have those!), or charge whatever they want as long as they play fair and disclose the terms—like any reputable loan shark would, right?

It’s a win for consumers, but color us skeptical. We already know that the big banks rake in approximately $8 billion annually from overdraft fees. That’s a hefty pot of cash, and nobody’s just handing that over without a fight. Of course, the banking industry has already let loose their pack of lobbyists to howl about how these rules are just too harsh. How dare we protect the consumer from being exploited?

You might be thinking, ‘Great! More money in my pocket!’—but hang on. The rule applies only to banks and credit unions with assets exceeding $10 billion (which is basically all the ones that matter) and, spoiler alert, those banks are already eying potential lawsuits and Congressional interference. Who knew the fight for our $5 back would be like watching an epic showdown between David and Goliath, but in this case, David’s armed with a smartphone and overdraft alerts?

Overdraft fees started back in the day when checks—yes, the ancient relics that make millennials giggle—were more common. But as a new generation struggles with financial burdens, these fees disproportionately target the less fortunate. According to the Consumer Financial Protection Bureau (CFPB), about 70% of overdraft fees are aimed at those whose average account balance hovers between $237 and $439.

If the new rule works as intended, we’re looking at a potential savings of approximately $5 billion per year for consumers. That’s roughly $225 back in the wallets of those who regularly face the wrath of overdraft penalties. So enjoy that savings, because who knows when we’ll receive the next ‘gift’ from our friendly neighborhood banks!

In conclusion, let’s keep our fingers crossed that this fee-squashing initiative survives the political storm and that 2025 brings with it a little less fiscal heartache for the working class. Now, where’s our $3 coffee at?