Bank of America cuts overdraft fees
Overdraft charges will go from $35 to $10 beginning in May
Bank of America cutting some fees on its overdraft services, joining recent enhancements by JPMorgan and Capital One.
The bank on Tuesday announced that it will begin to eliminate fees for nonsufficient funds in February and reduce overdraft charges from $35 to $10 beginning in May.
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"Over the last decade, we have made significant changes to our overdraft services and solutions, reducing clients’ reliance on overdraft, and providing resources to help clients manage their deposit accounts and overall finances responsibly," Holly O’Neill, president of retail banking at Bank of America, said in a press release.
Company logo Bank of America on Feb. 26, 2016, in New York ( Thomas Trutschel/Photothek via Getty Images / Getty Images)
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"Throughout the process we have engaged our National Community Advisory Council (NCAC) for their guidance and feedback on our changes," she explained. "These latest steps will further support our clients and empower them to create long-term financial wellness."
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The bank estimates the move will cut its overdraft fees 97% from 2009 Levels.
Night view of logo of the Bank of America Tower. It is an American multinational banking and financial services corporation. (Roberto Machado Noa/LightRocket via Getty Images / Getty Images)
The bank is also eliminating two smaller fees. It will no longer allow customers to overdraft their accounts at the ATM and will eliminate a $12 fee it charged customers when the bank automatically moved money from one account to another to avoid an overdraft, often moving money from a long-term savings account into the customers' primary checking.
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Other banks have done their part in working with customers on overdraft fees as well. Capital One recently announced it will end its overdraft fees in hopes of bringing "humanity" back to banking, as reported by FOX Business.
Similarly, JP Morgan Chase recently gave its customers additional options to avoid overdraft fees, including giving customers until the next business day to "to bring their balance back to $50 overdrawn or less to avoid overdraft service fees from the previous day," also reported by FOX Business.
The Associated Press and FOX Business' Suzanne O'Halloran contributed to this report.