Bank of America (NYSE:BAC) watched its shares stay stable soon after Wednesday’s opening bell, on new product news.
The banking giant today announced significant changes to its overdraft services, including plans to eliminate non-sufficient funds (NSF) fees beginning in February, and to reduce overdraft fees from $35 to $10 beginning in May.
The company will also eliminate the transfer fee associated with its Balance Connect for overdraft protection service in May. These and earlier changes over the last decade, together with industry-leading solutions that can help consumer clients avoid overdraft fees – such as the no overdraft fee SafeBalance® account and Balance Assist – will lead to overdraft fee revenues being reduced by 97% from 2009 levels.
The bank’s retail banking chief, Holly O’Neill, said in Wednesday’s news release, "Over the last decade, we have made significant changes to our overdraft services and solutions, reducing clients' reliance on overdraft, and providing resources to help clients manage their deposit accounts and overall finances responsibly,"
"Throughout the process we have engaged our National Community Advisory Council (NCAC) for their guidance and feedback on our changes. These latest steps will further support our clients and empower them to create long-term financial wellness."
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.
BAC shares lost six cents to $49.15.
