Bank / Credit Union

Bank of America announces 90% drop in overdraft fees

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August 25, 2022

Bank of America has announced that overdraft fees for its more than 35 million consumer checking accounts dropped by 90% compared to last year.

Earlier this year, Bank of America announced it would cut non-sufficient funds fees and reduce overdraft fees from $35 to $10. In addition, the bank provides a SafeBalance checking account to eliminate overdraft fees, which made up 45% of new checking account openings, according to a press release.

"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," Holly O'Neill, president of retail banking, Bank of America, said in the release. "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."

Overdraft fees now make up less than 0.4% of the bank's total revenue for the second quarter of 2022.