Banks With No Overdraft Fees
Banks are like every other institution — with the primary aim of generating income, and overdraft fees are considered one out of its plenty of income streams. There’s a constant controversial debate as to whether overdraft fees should be existent or not.
As stated earlier, this is a means of income for many banks, thus, the decision to curb it is most likely not going to happen.
Albeit, due to regulatory policies and other in-house bank policies, changes are being made to make over drafting more flexible. Recently, quite a number of banks have reduced the fees charged when you overdraw. Other banks eliminate overdraft fees completely but set up a must-do requirement before you are able to enjoy this service.
In this article, we will discuss and point out banks with reasonable overdraft fees as well as those with demands for you to enjoy no overdraft fee benefit.
Banks That Does Not Charge Overdraft Fee
One bank early in the fight for no overdraft fee is Discover bank. In 2019, the bank stopped charging insufficient fund fees and also has a reputation for not charging overdraft fees from its customers. Other major banks in the U.S have looked to eliminate or cut down on their overdraft fees. Outlined below is a list of some of these banks.
Bank Of America (BoFA):
In a statement released on their official website in January 2022 — the Bank Of America announced the end of NSF. Prior, the bank would usually charge customers non-sufficient funds fees. In addition to that, the bank also announced a new policy guiding overdraft. In May 2022, the bank introduced a cut down in overdraft fees from $35 to $10 — a significant reduction of $25 for customers to save up on. More to that, BOA has recently eliminated the $12 overdraft protection transfer fee. With all of these changes, customers wouldn’t have much of a headache with overdraft fees anymore. This change in policy is one that has resulted in bank flexibility and also the need to cut down customer expenses — which on one thought, would make anyone happy.
Citizens Bank:
In 2021, citizen bank introduced an overdraft fee grace period that allows customers an extension to get their accounts to a positive balance before the close of business. Although to date, Citizens bank charged a $35 overdraft fee — but announced plans to introduce a no overdraft fee policy in 2022. You would not incur an overdraft fee for purchases below $5 as long as you’ve applied for overdraft protection.
U.S. Bank:
In January 2022, the U.S. Bank stopped charging customers non-sufficient funds (NSF) fees. The bank also announced starting from June 30, 2022, it would increase the minimum amount that could be overdrawn without incurring a fee from $5 to $50. If your account reaches a negative balance of more than $50, you’d be charged an overdraft fee.
Santander Bank:
Similar to every other top bank in the U.S. Santander Bank has recently made an adjustment in its overdraft fee structure. The recent implementation allows customers to overdraft up to $100 without incurring an overdraft fee. This change took effect in the last quarter of 2021. For a plus, the bank also completely canceled charging customers $12 when they transfer funds between accounts to avoid overdraft. The bank says this service can only be enjoyed by customers that have applied for overdraft protection. Other than that, the bank is still in the business of charging $35 for overdrafts above $100.
Wells Fargo:
Earlier this year, 2020 — Wells Fargo announced that it would stop charging customers non-sufficient funds fees and overdraft protection fees. It also introduced a 24 hours grace period for customers to pay up their overdrafts before incurring a fee. With this new policy, customers can overdraft and pay up even before more expenses are incurred.
Discover Bank:
In 2019, Discover bank introduced a policy that totally eliminates overdraft fees from its customers. The bank seeks to allow its customers with a savings, checking and money market account an overdraft waiver. Read about the eligibility requirements here.
Q: How can I be eligible for overdraft Fees?
A: To be eligible for an overdraft, most banks require that you apply for overdraft protection. To get started, contact the customer relations service of your bank for assistance.
Q: Can I overdraft without getting charged?
A: Several banks have varying policies regarding overdraft fees. Many of which have a service fee, but at a fixed amount threshold.
Bottom Line
Overdraft policy differs from bank to bank. As much as you do not want to incur a fee for overdrawing your account, it is important that you are acquainted with your bank overdraft policy to determine whether or not there’s an exception.
Overall, stay in touch with your bank customer service relation officer or check their official website for a possible change in overdraft structure.
