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Big banks are doing away with overdraft fees

Some institutions are doing away with overdraft fees.

citibank does away with overdraft fees

Find out which institutions.

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What is an overdraft fee?

An overdraft fee is a charge you pay when you spend more money than you have available in your account. Overdraft fees fall under the umbrella of non-sufficient fund (NSF) fees. This works similarly to a bounced check. Read more about it here.

What banks are doing away with the fees?

Citibank plans to eliminate all overdraft fees by this summer. They also plan to eliminate returned item fees and overdraft protection fees.

PNC Bank rolled out Low Cash Mode in April 2021. Low Cash Mode lets customers decide when the bank should pay for items if they have insufficient funds. It also gives you time to add money before you’re charged an overdraft fee. PNC has also capped the fees at one per day and has stopped charging insufficient funds fee.

Ally Bank waived overdraft fees during the pandemic, they have since announced that they will eliminated permanently.

Santander Bank has lifted overdraft fees for accounts overdrawn for $100 or less. They also reduced the number of returned item fees from six to three.

Capital One said they would be eliminating all overdraft and non-sufficient funds fees in early 2022.

JP Morgan Chase did away with their returned item fee/ non-sufficient funds fee. They increased their overdraft “cushion” from $5 to $50. This year, they plan to offer a full day to cover an overcharge and grant early access to direct deposit.

In February 2022, Bank of America got rid of bounced check fees. They also plan to reduce the overdraft penalty from $35 to $10 in May.

Wells Fargo also got rid of their bounced check charge. They also did away with the overdraft protection fee in March of 2022. The bank is also giving customers a 24 hour grace period before imposing the overdraft fee.

Discover, Chime, Axos, and Aspiration all offer checking accounts without overdraft fees.

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