Bank of America cuts overdraft fees
Bank of America is slashing fees for account overdrafts, as reported by Local 10.
Bank of America today announced significant changes to its overdraft services, including plans to eliminate non-sufficient funds (NSF) fees beginning in February and to reduce overdraft fees from $35 to $10 beginning in May.
As part of a new move, Bank of America is reportedly cutting the amount it charges customers when they spend more than they have in their accounts and plans to eliminate its bad check fees altogether.
This measure is recently being implemented in the largest banks in the country, with the intention of reducing the overdraft fees that have been charged to clients for a long time. These fees often add up to hundreds of dollars a year for frequent overdraft users.
We're announcing sweeping changes to our overdraft services in 2022, including eliminating non-sufficient funds fees and reducing overdraft fees. Learn more –> https://t.co/c36lUraFyl
— Bank of America News (@BofA_News) January 11, 2022
In addition to reducing overdraft fees, Bank of America will also stop charging insufficient funds fees, which are charged when you decline a transaction, better known as a bad check.
In all, Bank of America, the nation's second-largest bank, estimates the steps will cut its revenue from overdraft fees by 97% from where it was in 2009, the year before it began taking incremental steps to rein in revenue. for overdraft fees.
“This is the latest step in the journey that we have taken,” Holly O'Neill, president of retail banking at BofA, said in an interview. "We have good financial solutions for customers without them having to rely on overdrafts, but we will still overdraft if necessary."
"We remain committed to taking steps to further reduce overdraft fees in the future and continue to empower customers to drive positive changes in overdraft-related behavior," O'Neill added.
The bank is also waiving two smaller fees. It will no longer allow customers to overdraw their accounts at the ATM and will eliminate a $12 fee that charged customers when the bank automatically moved money from one account to another to avoid an overdraft, often moving money from one savings account to another. long-term to customers' primary checking account.
Author: Emery Barreto 1:28 pm