Financial giant Bank of America is adjusting how it does business and will be either lowering fees or doing away with some altogether.
The company announced it will be lowering the cost of overdraft fees from $35 to $10 in May, The Associated Press reported.
It will also be doing away with fees levied when there’s not enough money in an account to cover a transaction, called non-sufficient funds or bounced checks.
Bank of America said about 25% of the money earned from either overdraft or NSF fees comes from NSF fees.
It has been more than 10 years since Bank of America started cutting fees associated with not having enough money in accounts.
“This is the final step in the journey we’ve been on,” Holly O’Neill, president of retail banking at BofA, said, according to the AP. “We have good financial solutions for clients without them having to rely on overdraft, but we will still have overdraft if it is needed.”
Capital One announced it would stop charging customers for overdrafts and bounced checks late last year, CNN reported.
Ally also recently got rid of overdraft fees.
PNC has a low cash mode that allows customers to manage their accounts more easily using their smartphones to help avoid fees, CNN reported.
Banks earned almost $15.5 billion in overdraft fees in 2019, the Consumer Financial Protection Bureau said last month.
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