Bank of America Consumer Overdraft Fees Drop 90% in June and July Following Industry Leading Changes
Bank of America today announced that in June and July fees related to overdraft services for its more than 35 million Consumer checking accounts declined 90% compared to the same period in the prior year. June and July were the first two months after sweeping changes related to these services were implemented.
Earlier this year, the bank announced industry leading changes that included the elimination of non-sufficient funds (NSF) fees and the reduction of overdraft fees from $35 to $10. Clients can also avoid overdraft fees altogether by choosing a SafeBalance checking account, which now represents approximately 45% of new checking account openings. Consumer client overdraft fees made up less than 0.4% of the company’s total revenue in the second quarter of 2022.
“For more than a decade, Bank of America has invested heavily in supporting our clients’ financial health through industry-leading solutions and ongoing enhancements to our overdraft services,” said Holly O’Neill, President of Retail Banking, Bank of America. “Our scale, client focus and technology investments have allowed us to adopt policies and innovate in ways that help clients manage their everyday finances and liquidity needs on their own terms, while also delivering for our shareholders.”
By next year, new solutions and enhanced programs introduced over the last decade will reduce consumer overdraft fees by 97% from 2009 levels.
Since 2010, Bank of America has taken many steps to empower its consumer clients to bank with greater confidence and reduce overdraft usage. The company leads the industry in helping clients avoid overdrafts and, in doing so, has significantly reduced the vast majority of fees related to overdraft. Key milestones along this journey have included:
In addition to the changes to overdraft related fees, Bank of America’s suite of Essential Solutions offers a powerful combination of transparent, low and no cost, easy-to-use offerings that help clients budget, save, spend and borrow carefully and confidently. The full array of solutions includes:
Last year, Bank of America was recognized with more than 280 industry awards for its innovation, financial technology, and delivering exceptional client services and solutions.
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Bank of America is one of the world’s leading financial institutions, serving individual consumers, small and middle-market businesses and large corporations with a full range of banking, investing, asset management and other financial and risk management products and services. The company provides unmatched convenience in the United States, serving approximately 67 million consumer and small business clients with approximately 4,000 retail financial centers, approximately 16,000 ATMs and award-winning digital banking with approximately 55 million verified digital users. Bank of America is a global leader in wealth management, corporate and investment banking and trading across a broad range of asset classes, serving corporations, governments, institutions and individuals around the world. Bank of America offers industry-leading support to approximately 3 million small business households through a suite of innovative, easy-to-use online products and services. The company serves clients through operations across the United States, its territories and approximately 35 countries. Bank of America Corporation stock (NYSE: BAC) is listed on the New York Stock Exchange.
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Don Vecchiarello, Bank of America