Bank of America consumer overdraft fees drop 90% in June and July following major industry changes

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Year-over-year decline fueled by continued overdraft program improvements, including no overdraft fees SafeBalance® Account and Elimination of NSF Fees

CHARLOTTE, North Carolina, August 17, 2022 /PRNewswire/ — Bank of America today announced that in June and July, overdraft service fees for its more than 35 million consumer checking accounts were down 90% from the same period of the previous year. June and July were the first two months after the implementation of sweeping changes related to these services.

Earlier this year, the bank industry-leading announced changes which included the elimination of insufficient funds (NSF) fees and the reduction of overdraft fees from $35 at $10. Customers can also avoid overdraft fees altogether by choosing a SafeBalance checking account, which now accounts for about 45% of new checking account openings. Consumer customer overdraft fees accounted for 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 the financial health of our customers through industry-leading solutions and continuous enhancements to our overdraft services,” said Holly O’Neill, president of retail banking, Bank of America. “Our scale, customer focus and technology investments have enabled us to adopt policies and innovate in ways that help customers manage their day-to-day finances and liquidity needs on their own terms, while meeting the needs of our shareholders.”

By next year, new solutions and improved programs introduced over the past decade will reduce consumer overdraft fees by 97% from 2009 levels.

Progress towards reducing overdraft fees

Since 2010, Bank of America has taken many steps to help its consumer customers bank with more confidence and reduce the use of overdrafts. The company leads the industry in helping its customers avoid overdrafts and in doing so has significantly reduced the vast majority of overdraft fees. The key stages of this journey included:

  • 2010 – Elimination of overdraft fees for consumer customers when using point-of-sale debit cards
  • 2011 – Introduction of courtesy low balance alerts
  • 2014 – Launch of SafeBalance “no overdraft fee” account
  • 2017 – Elimination of extended overdraft balance fees
  • 2020 – Created Help with balancea low-cost solution to manage short-term liquidity needs
  • 2021 – Launched Balance Connection our enhanced overdraft protection service, which allows customers to link up to five accounts to avoid overdrafts
  • February 2022 – Elimination of insufficient funds fees on consumer deposit accounts
  • February 2022 – Removed ability for customers to overdraw their ATM accounts
  • May 2022 – Reduction of consumer overdraft fees by $35 at $10
  • May 2022 – Elimination of Balance Connect for Overdraft Protection Transfer Fee (formerly $12)

Essential solutions

In addition to changes to overdraft fees, Bank of America’s suite Essential solutions offers a powerful combination of transparent, low-cost and free, easy-to-use offers that help customers budget, save, spend and borrow with caution and confidence. The full suite of solutions includes:

  • SafeBalance® – With SafeBalance, there are no overdraft fees and monthly maintenance fees are waived for eligible students under 25 as well as customers enrolled in our Preferred Rewards program with eligible balances.
  • Help with balance – Balance Assist offers customers an affordable way to manage their short-term cash needs, by borrowing only the amount they need, up to $500 (in increments of $100) for a $5 package regardless of the amount borrowed. Repayments are made in three equal monthly installments over a 90-day period. For more information, check out these additional product details and eligibility criteria. Borrowers must have been a Bank of America current account customer for at least one year. Over 400,000 Balance Assist loans have been completed since the program began.
  • Balance Connection – Balance Connect provides our customers with overdraft protection through the ability to link up to five accounts to their checks, while increasing simplicity and accessibility through digital enrollment and management.
  • Secured credit cards – Personalized Cash Rewards, Unlimited Cash Rewards, and BankAmericard® Secure Cards can help customers establish, strengthen, or rebuild credit, and they can apply for an account with a security deposit from as little as $200. With responsible credit behavior, over time, this could help customers improve their credit score.
  • Affordable Home Loans – In early 2019, Bank of America launched its new $15 billion Community Home Ownership Pledge, which has already helped 36,000 low- and middle-income buyers access homeownership through low-downpayment loans and down payment and closing cost grants. By 2025, Bank of America expects to help more than 60,000 individuals and families buy homes through the program.
  • Keep the Change® – This tool helps customers build savings by automatically depositing spare change from rounded up debit card transactions into a savings account. Over the past 15 years, this program has helped clients lead more than $15 billion excess change to customer savings.
  • Better Money Habits®A free financial education platform that provides an easy and accessible way to connect people to the tools, resources, and education they need to take control of their finances.

Recognized leadership

Last year, Bank of America was recognized with more than 280 companies price for its innovation, fintech, and exceptional customer services and solutions.

Forward-looking statements

Certain statements in this press release may constitute “forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements represent Bank of America’s current expectations, plans or forecasts based on currently available information. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. These statements often use words such as “expects”, “anticipates”, “believes”, “estimates”, “targets”, “intends”, “plans”, “predicts”, “goals” and other similar expressions or future or conditional verbs. such as “will”, “may”, “might”, “should”, “would”, and “could”. Forward-looking statements speak only as of the date on which they are made, and Bank of America undertakes no obligation to update any forward-looking statement to reflect the impact of circumstances or events occurring after the date on which the forward-looking statement has been made.

Forward-looking statements represent Bank of America’s current expectations, plans or forecasts regarding its results, revenues, expenses, efficiency ratio, capital measures and future business and economic conditions more generally, and other future matters. These statements are not guarantees of its future results or performance and involve certain known and unknown risks, uncertainties and assumptions that are difficult to predict and are often beyond Bank of America’s control. Actual results may differ materially from those expressed or implied by forward-looking statements. You should not place undue reliance on forward-looking statements and should consider all of the uncertainties and risks discussed in 1A. “Risk Factors” in Bank of America’s Annual Report on Form 10-K for the Year Ended December 31, 2020and in all other subsequent filings by Bank of America with the Securities and Exchange Commission.

Bank of America

Bank of America is one of the world’s leading financial institutions, serving individuals, small and medium-sized businesses, and large corporations with a full range of banking, investment, asset management, and banking products and services. other financial and risk management products and services. The company offers unparalleled convenience in United States, serving approximately 67 million retail and small business customers with approximately 4,000 retail financial centers, approximately 16,000 ATMs and award-winning digital banking services 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 businesses, governments, institutions and individuals worldwide. whole world. Bank of America provides 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 its customers through operations across United States, its territories and about 35 countries. Bank of America Corporation (NYSE: BAC) shares are listed on the New York Stock Exchange.

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Journalists can contact:
Don VecchiarelloBank of America
Phone: 1.980.387.4899
[email protected]

SOURCE Bank of America Corporation

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