Truist Financial Corporation is set to launch two new checking accounts with no overdraft fees, making it the latest in a series of banks to move away from this lucrative income source.
The accounts will be a part of Truist One Banking, set to roll out this summer, the company said in a news release Tuesday (Jan. 18).
In addition to the lack of overdraft fees, the accounts will also offer a deposit-based line of credit – up to $750 – that doesn’t rely on credit scores for qualification. Truist said in the next few months it will also discontinue returned item, negative account balance and overdraft protection transfer fees on all accounts.
Read more: More Banks Ditching Lucrative Overdraft Fees
“Truist wants to change the way people think about banking by building an experience around what matters most to them,” said Truist CEO Bill Rogers. “Guided by our purpose to inspire and build better lives and communities, we’re delivering banking solutions that improve financial well-being for our clients and build better pathways to financial inclusion for everyone.”
The company say these new services address some of the biggest challenges facing its clients: purchases denied at the point-of-sale, a lack of access to short-term credit and the impact of unanticipated fees.
“For clients who frequently face overdraft challenges, Truist will actively partner to offer help and share consultative advice regarding these new offerings,” the company said.
Truist said these changes, coupled with the client benefits from the new accounts, will help clients save an estimated $300 million by 2024.
Learn more: BoA to End NSF Fees, Lower Overdraft Fee to $10
As PYMNTS reported earlier this month, many banks in the U.S. have begun to eliminate or modify overdraft fees, which brought in an estimated $15.4 billion in 2019, in an effort to compete with zero-fee FinTechs and placate customers and politicians.
Capital One dropped overdraft fees despite earning about 0.5% of its 2020 income from them, while JP Morgan Chase, the nation’s biggest bank, recently announced changes to its overdraft policy.
Last week, Bank of America announced it would eliminate non-sufficient fund (NSF) fees and reduce overdraft fees from $35 to $10 starting in May.
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