Economy

Women Pay More Bank Fees Than Men and This Is Why

Colman Andrews

Published: July 30, 2019 11:41 am

Last Updated: January 6, 2020 2:56 am

It’s well-known that women in the U.S. get paid less for their work than men. The pay gap averages about 20% — that is, female full-time year-round workers make 80.5 cents for every dollar a man earns. In middle-skill jobs (advanced manufacturing, information technology, transportation, etc.), women make only 66% of what their male counterparts do. That number can drop even lower for certain jobs. These are the worst-paying jobs for women.

There are plenty of other cases of gender-driven financial inequality in modern American life (why does a woman’s blouse cost more to wash and press than a — usually larger — man’s shirt?), and now a new study adds yet another example: women pay 18% more in bank fees annually than men.

The investing app Stash analyzed data from more than half a million of its users in this country, and found that men paid an average of $182 per year in ATM, overdraft, and late fees; minimum balance penalties; commissions; and other bank charges — while women averaged $218. That 18% difference rose to 30% when only overdraft fees were considered.

Stash CEO Brandon Krieg suggests that women pay more bounced-check charges because their lower income makes it harder for them to maintain a minimum balance in their accounts. “Financial disparities…amongst men and women impact nearly every part of a woman’s financial life,” Krieg told CBS News.

The disparity between men’s and women’s salaries is expected to eventually disappear. However, it won’t happen until 2070. The gender pay gap varies from state to state — and these are the worst–paying states for women.