Behaviorally informed regulations from the Federal Reserve Board prohibit banks from making overdraft protection the default option when opening a new account. That is a reasonable initiative, but as we have seen, default options are not always sticky.

it. If the default fund is terrific and can work well for most participants, or if the choosers are likely to blunder, then it might make sense to encourage people to select the default. If the creators of the default fund are not really experts, if the choosers know a lot, and if the situations of different choosers are relevantly different, then

Our goal, in short, is to help people make the choices that they would have made if they had paid full attention and possessed complete information, unlimited cognitive ability, and complete self-control.