Tech »  Topic »  Overdraft fees: Which banks are eliminating them and why

Overdraft fees: Which banks are eliminating them and why

Bank of America is the latest "big four" financial institution to trim overdraft fees

Bank of America and Wells Fargo this week became the latest financial institutions to revamp overdraft fees: Starting in May, Bank of America will slash the penalty, imposed when a customer withdraws more than the available amount, from $35 to $10.

The Charlotte, North Carolina, bank said it is also abolishing its "non-sufficient funds" fee -- incurred when a payment bounces -- and eliminating the transfer fee associated with overdraft protection, when funds from one account are used to cover a shortage in another.

Wells Fargo said that, by the end of March, it would also ditch its non-sufficient fund charge as well as the fee for overdraft protection. Starting in October, the 169-year-old financial institution will also give customers a 24-hour grace period before imposing an overdraft fee and allow them to access direct-deposit payments two days ...

Copyright of this story solely belongs to cnet . To see the full text click HERE