The Latest in Bank Overdraft Fee News

June 2022 – New York Community Bank and Flagstar Bank to Eliminate Nonsufficient Funds Fees

New York Community Bank (NYCB) and Flagstar Bank announced separately on June 7 that they would be eliminating nonsufficient funds (NSF) fees from their checking accounts. NYCB said it plans to remove NSF fees on all of its consumer and business checking accounts starting Aug. 1 and that it will eliminate overdraft protection transfer fees. Flagstar Bank will also remove NSF fees beginning Aug. 1, as well as its continuous negative balance fee and overdraft protection transfer fee.

March 2022 – Huntington Bank Announces Overdraft Fee Reduction Starting July 2022

On March 8, Huntington Bank said it would be reducing its $36 overdraft fee to $15 beginning July 2022. Huntington Bank also currently has a policy of not charging overdraft fees when a customer overdrafts by $50 or less. If a customer does overdraft by more than $50, they can avoid an overdraft fee by bringing their account up to a positive balance by midnight Central time the next business day.

February 2022 – Citibank Will Remove Overdraft Fees by Summer 2022

Citibank announced on Feb. 24 that it will eliminate overdraft fees, overdraft protection fees and returned item fees for customers by summer 2022. Citibank will continue to offer overdraft protection services through transfers from a customer’s linked Citibank savings account, and customers who qualify for a Checking Plus account can use an overdraft line of credit to cover negative balances. Other overdraft services include opting out of overdraft coverage so Citibank will deny a transaction if it would result in a negative balance. Customers can also sign up for low balance alerts.

January 2022 – Bank of America Announces It Will Remove Nonsufficient Funds Fees, Reduce Overdraft Fees

Bank of America said on Jan. 11 that it would remove nonsufficient funds fees beginning in  February 2022, and that it would reduce overdraft fees from $35 to $10 starting in May 2022. The bank will eliminate its overdraft protection transfer fee in May, too.

December 2021 – Capital One Says It Will Eliminate Overdraft Fees in Early 2022

In December 2021, Capital One announced that it would no longer charge overdraft fees or nonsufficient funds fees on consumer accounts, and it has since implemented that policy. Customers now have options to automatically decline a transaction that would result in an overdraft, initiate a free transfer from a linked Capital One savings or money market account, or choose no-fee overdraft coverage. With the last option, Capital One may decide to cover a check payment, electronic payment, recurring debit card payment, ATM withdrawals or one-time debit card purchases that would result in an overdraft, but the customer must promptly replenish the funds in their account or risk having their account closed.

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