Bank of America announced Tuesday that it would reduce overdraft fees for its 66 million consumer and small business clients. Beginning next month, the banking giant will no longer allow customers to overdraw funds at ATMs and will eliminate nonsufficient funds (NSF) fees for bounced checks and other similar transactions.
Starting in May, overdraft fees will also be reduced from $35 to $10 on transactions covered by the bank when an account’s balance is overdrawn, including via recurring or automatic payment transactions. The bank will also eliminate the $12 Balance Connect™ service charge to transfer funds from linked accounts to overdrawn accounts.
“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, the bank’s President of Retail Banking, said in a statement.