Bank of America joins the ranks of financial institutions slashing overdraft fees

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Bank of America announced Tuesday that it will be reduced overdraft fee For its 66 million consumer and small business customers. From next month, the banking giant will no longer allow customers to withdraw excess money from ATMs and will do away with insufficient funds (NSF) charges for bounced checks and other similar transactions.

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Starting in May, the overdraft fee on transactions covered by the bank will be reduced from $35 to $10 when an account balance is overdrawn, including recurring or automatic payment transactions. The bank will also waive the $12 Balance Connect™ service fee for transferring funds from linked accounts to multiple withdrawal accounts.

“Over the past decade, we have made significant changes to our overdraft services and solutions, reducing customer reliance on overdrafts and providing resources to help customers responsibly manage their deposit accounts and overall finances ,” said Holly O’Neill, the bank’s retail president. banking, said in Statement,

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The move comes from consumer advocacy groups and MPs Speaking out against overdraft fees and how they have unfairly affected consumers. Overdraft and NSF fees are a significant revenue source for US banks, bringing in an estimated $15.47 billion in 2019, according to a December report. Consumer Financial Protection Bureau, Banks with assets of over $1 billion include Bank of America, JP Morgan and Wells Fargo That year brought in 44% of the fees. According to the CFPB, these “fee harvesting practices” have persisted throughout the COVID-19 pandemic, with only less than 9% of consumer accounts paying 10 or more overdrafts per year.

Other financial institutions, including capital a, Discover And Allied Financial announced in 2021 that they would waive overdraft fees, while others Introduced less-punitive alternatives Like grace period or short term loan.

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Consumers seeking help in dealing with overdraft and NSF charges can submit a Complaint to CFPB. Advice on managing bank accounts and avoiding fees is available CFPB website,

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