The Consumer Financial Protection Bureau on Thursday announced the final version of a rule limiting banks' ability to charge overdraft fees. It says the rule will save American consumers $5 billion annually.

Large US banks will have to cap overdraft fees at $5 — or an amount that covers their costs and losses — under a new consumer protection rule that’s been vigorously opposed by industry and Republicans.

The Consumer Financial Protection Bureau is closing a loophole that it says allowed big banks to profit heavily from overdraft fees. A new rule targets ban

The rule announced Thursday would require big banks and credit unions to slash long criticized high overdraft fees from $25 or $35 in many cases.

The U.S. watchdog agency for consumer finance on Thursday adopted new regulations capping the amount banks can charge for overdrafts, saying the rule would save depositors $5 billion annually.

It is unclear whether the rule, which could help save Americans billions in fees each year, will remain in place after President-elect Donald J. Trump returns to office.

Key Takeaways The Consumer Financial Protection Bureau issued a rule capping overdraft fees at $5 in most cases.The fee cap goes into effect in October and would save households that pay overdraft fees an average of $225 a year,