BANK of America has become the latest bank to support overdraft customers by reducing fees.
It comes as overdraft fee hit a record high last year, as American households struggle financially during the coronavirus pandemic.
Starting in May 2022, Bank of America will cut the overdraft fee it charges customers from $35 to $10.
“We have great financial solutions for our customers that don’t have to rely on overdrafts,” said Holly O’Neill, president of retail banking.
Bank of America There are also plans to eliminate insufficient funds, eliminating the ability for customers to withdraw money through their accounts with ATM transactions, and scrap wire fees for a program that allows customers to link other accounts. to avoid overdraft.
However, Bank of America is not the only bank to make the overdraft change.
On December 1, 2021, Capital One announced that it would eliminate overdraft fees altogether.
Capital One founder and chief executive Richard Fairbank said the bank was doing this to restore “ingenuity, simplicity and humanity to banking”.
The move comes despite Capital One reportedly making $150 million in annual revenue from fees, according to CNBC.
Ally Bank was America’s first major bank waive all overdraft fees in June.
“Overdraft fees can be a major cause for concern,” said Diane Morais, president of consumer and commercial banking at Ally Bank.
“We’ve become clear that the best way to relieve that anxiety is to get rid of those fees.”
What is the overdraft fee of other banks?
Many may wonder if other banks will follow the lead of Ally Bank, Capital One and Bank of America.
That has yet to be determined, and overdraft fees are still a part of many people today.
Here is a list of some banks that still charge overdraft fees:
- BB&T: $36
- Charles Schwab: 24 dollars
- Chase: $34
- Citizens Bank: $37
- CitiBank: $34
- Thursday Bank: $37
- NavyFederal Credit Union: $29
- PNC Bank: $36
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https://www.the-sun.com/money/4442301/how-much-bank-charges-overdrafts-bank-of-america/ How much does your bank charge for overdrafts as Bank of America latest fee reduction