Bank of America will be debuting significant changes to its overdraft services, which will include plans to do away with non-sufficient fund (NSF) fees as of February and to cut overdraft fees from $35 to $10 as of May.
The company announced these changes on Tuesday (Jan. 11), adding that it in May, it also plans to do away with the transfer fee that comes along with its Balance Connect for overdraft protection.
In February, Bank of America also plans to remove the ability for clients to overdraw accounts at the ATM.
Per the announcement, these changes — coupled with previous changes the company has made — will cut overdraft fee revenues by 97% when compared to 2009 levels.
Since 2010, Bank of America has looked into letting its consumer and small business clients having more power. The company has cut down on most fees related to it, with some milestones including rolling out Balance Connect for overdraft protection — letting clients link up to five accounts — and doing away with extended overdrawn balance charges.
“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,” said Holly O’Neill, president of retail banking, Bank of America.
“Throughout the process we have engaged our National Community Advisory Council (NCAC) for their guidance and feedback on our changes,” O’Neill continued. “These latest steps will further support our clients and empower them to create long-term financial wellness.”
PYMNTS reported last month that Bank of America has also rolled out a luxury credit card — the Bank of America Premium Rewards Elite Card — which will come with a $550 annual fee and double points for things like travel and dining.
Read more: BoA Debuts Luxury Credit Card With Airline, Lifestyle Credits
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