Welcome to MoneyNerd: This week the team dug into new proposed banking regulations and figured out what they might mean for you.
Also this week:
Bank overdraft fees (and how to avoid them).
Gas prices (yes, they’re still climbing).
Our Smart Money podcast (busting some credit card myths).
Summer travel tips (book soon).
Our weekly money tips (and more!)
Basel III Endgame: Not playing at your local cineplex
“Endgame” is not the final installment in another action franchise. It’s the name given to the last wave of banking regulation changes to be proposed in the United States under a global framework of banking standards called Basel III.
The international Basel Committee on Banking Supervision began work on the framework after the 2008 subprime mortgage crisis and its subsequent recession. Their goal? Prevent another financial meltdown.
Elements of the framework have been put into place over the intervening years, in the United States and elsewhere. In March, federal regulators proposed the final set of U.S. banking rule changes in response to Basel III — hence the “endgame” label.
The new rules, now open for public comment, are many and complicated. The piece that’s probably most relevant to you and me involves capital requirements — which dictate how much cash banks and other lending institutions must hold in reserve against potential loan losses.
The first set of “endgame” proposals, made in 2023, would have tightened capital requirements, in effect limiting how much money banks could lend. Those rules were scrapped when President Donald Trump’s election brought a new, more industry-friendly mood to D.C.
What will the new rules mean for consumers?
Proposed rules now under consideration would actually loosen capital requirements, modestly, potentially freeing up about $90 billion now tied up in reserves. The banking industry is all for it, and they say consumers will benefit as the cost of borrowing will drop because banks will have more money to lend.
Skeptics say most consumers will see minimal if any benefit, and argue that the new rules actually increase the risk of another fiscal crisis — like the one in 2008 that Basel III was meant to address.
Senior news writer Anna Helhoski did a deeper dive into the new rules and what their impact might be — read it here.
Average U.S. gas prices cross $4, Trump says U.S. will leave Iran
(Photo by Heather Diehl/Getty Images News)
On Tuesday, gas prices in the U.S. hit $4 — the highest average since 2022. Prices vary by state with the highest averages in California ($5.891) and the lowest in Oklahoma ($3.272).
Gas prices are up $1 — roughly 36% — since the Iran war began on Feb. 28. As of April 2, the national average gas price is $4.081, according to AAA, which tracks gas prices. Brent crude oil — the global benchmark — continues to hover above $100 per barrel after hitting a high of $119 on March 19.
In an address to the country on Wednesday night, President Donald Trump said he expects the war to last another two to three weeks, and during that period the U.S. will hit Iran “extremely hard.”
The Strait of Hormuz, through which roughly one‑fifth of the world’s oil and natural gas flows, remains closed to most shipping traffic. Trump did not commit the U.S. to reopening it, suggesting instead that other countries take the lead — echoing what he said in his Truth Social post the day before: “Go get your own oil!”
In his speech Trump said, “When this conflict is over, the strait will open up naturally. It’ll just open up naturally. They’re going to want to be able to sell oil because that’s all they have to try and rebuild. It will resume the flowing and the gas prices will rapidly come back down.”
The strait won’t necessarily “just open up naturally” if and when the conflict ends. Iran has the ability — and likely the incentive — to control the flow, and that could keep gas prices higher for some time.
Iranian officials made their stance clear earlier in the day. Ebrahim Azizi, head of the Iranian Parliament’s National Security Commission, posted on social media, “The Strait of Hormuz will certainly reopen, but not for you.” The U.S. may be the world’s largest oil producer, but it isn’t immune to disruptions at the world’s most critical oil transit chokepoint. And American refiners still pay prices set by global commodity benchmarks, which means prices could still stay high at the pump for American drivers.
Bookmark our gas price tracker for more updates.
The checking account fee you probably don't plan for
(Photo by Megan Varner/Getty Images News)
We just crunched the numbers and found that banks charge an average overdraft fee of $17 per transaction. An overdraft can be triggered by something as simple as a deposit that lands late or an expense that hits early. And those charges can add up fast.
The good news is some financial institutions don't charge overdraft fees at all, while others make them pretty easy to avoid. Here are a few ways you can protect yourself from surprise fees:
Set up a low-balance alert so you know when your account is running low before a transaction pushes it negative.
Link your checking account to a backup savings account. If your balance dips, that extra savings cushion can cover the gap. Many banks offer overdraft transfers at no charge.
Ask your bank about its waiver policy. Some might forgive the fee if a deposit is made within a day or so, while others won’t charge you if your account is overdrawn by only $50 or less.
You can also opt out of overdraft coverage entirely. That may mean your debit card gets declined at checkout, but it also means you won’t get hit with a fee. For some people, that’s a worthwhile tradeoff.
If your bank doesn't offer much flexibility — or charges more than average (some fees run as high as $35 per transaction) — it might be time to shop around. Some online banks and credit unions have moved away from overdraft fees, and switching accounts can be pretty easy.
With the right account and a few smart settings, an overdraft fee can be a money mishap you never have to pay for.
Watching your savings APY slip? Savings buckets can help. The Fed held rates steady this month, but we’re seeing some savings yields start to edge lower. When your money isn't earning what it used to, how you organize it matters even more. That’s where savings buckets step in. They let you split one account into clearly labeled goals (think emergencies, car repairs and vacations) so you’re not just staring at one lump sum trying to guess if you’re on track. With buckets, you actually know where you stand with each goal.
Don’t settle for paying full price. Amazon’s Big Spring Sale may be over, but you can keep saving money — even if you missed the deals. We rounded up seven of the best free coupon apps to help you locate discounts, cash-back rewards and more.
Choose your side hustle carefully. Not all side gigs will earn you a quick buck. We tried some. We interviewed people. And we scoured Reddit for real talk on how to work the gig economy. Read these tips before you start a new hustle of your own.
Summer flights are about to get a lot more expensive. Don’t wait to book.
Some domestic fares are already up 10–15%, and summer airfare is already around 19% higher than last year.
If you’re waiting for prices to drop, you’re probably going to be disappointed. Here’s what to do instead:
Book now, but book flexible. Spend a little more for a changeable ticket. If prices drop, rebook and get the difference back.
Set up price alerts. Keep watching even after you book. Price drops → rebook. Doesn't drop → you already locked it in.
Smart Money: Think you know who owes on credit cards?
In the news segment of the latest Smart Money podcast, senior news writer Anna Helhoski and NerdWallet data writer Kurt Woock unpack the findings of a new NerdWallet study that challenges common myths about credit card debt. They discuss why income is a poor predictor of who carries it, what expenses actually drive balances higher, and why Baby Boomers carry multi-card debt at surprisingly high rates.
Plus hosts Sean Pyles, CFP®, and Elizabeth Ayoola discuss the pros and cons of using AI for financial guidance.
Watch below or get the audio version.
Here’s what else you may have missed this week from NerdWallet:
A popular student loan repayment plan will be shut down — forcing over 7 million borrowers to find a new option. We covered what you need to know.
Did the price of your Netflix subscription go up? We reported on the latest price increases in our Netflix explainer.
Mortgage rates have been rising pretty relentlessly, and from where we stand now, it looks like April will see rates continuing to move higher. The Nerds provided an April mortgage outlook.
Data Nerd Erin El Issa wrote about how she’s saving nearly $1,500 this year by cutting out unnecessary subscription costs.
Can you pass our financial literacy quiz? Test your understanding of financial concepts, and find resources to build your knowledge.
GOP lawmakers deferred a new deal that would have quickly ended the DHS shutdown.
A highly anticipated jobs report will be released Friday morning (after this newsletter is sent). Check here for a full breakdown.
Elsewhere in money news:
Amazon bought Fauna Robotics, a company that created the Sprout humanoid robot. (Fortune) 🔒
Grad school doesn’t boost pay like you might expect for some popular degrees. (The Washington Post) 🔒
The rapid rise of lightly regulated private credit lending is raising concerns about a future financial crisis. (NPR)
SpaceX is confidentially filing for an IPO that would likely set a record offering. (CNBC)
President Trump is expected to overhaul steel and aluminum tariffs. (WSJ) 🔒
Your MoneyNerd team: Courtney Neidel, Anna Helhoski, Rick VanderKnyff.
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Until next week,
