According to a new report, several banks in the country are earning huge profits through overdraft fees by allowing their customers overdraw their checking accounts.

According to a report by the Consumer Financial Protection Bureau, the banks allow their customers to overdraw their balances and then reap huge profits form then in charges. Consumer groups are asking the banks to not allow customers to withdraw more than the available funds in their accounts.

Data showed that the median overdraft fee was $34 at the 33 largest financial institutions in the country while it was $30 at 800 smaller banks and credit unions in 2012. The CFPB's white paper with data from Informa Research Services showed that the banks are receiving huge profits form the customers thorough these fees.

The customers who decided not to spend more money than what they had in their account, were able to save more money than those who availed the overdrawing services from banks in the country. It was also found that the people, who earlier used these services but opted out, were able to save an average $450 during the second half of 2010.

"While both heavy overdrafters who did and did not opt in experienced a reduction in fees per account in the second half of 2010, the reduction in fees for those who did not opt in was $347 greater, on average, than for those who did opt in," the report read.