CHARLOTTE, N.C., Jan. 11, 2022 /PRNewswire/ -- Bank of America
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
ConnectTM 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 AssistTM – will lead to overdraft fee
revenues being reduced by 97% from 2009 levels.
"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," said
Holly O'Neill, President of Retail
Banking, Bank of America. "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."
Progress toward reducing overdraft fees
Since 2010,
Bank of America has taken many steps to empower its consumer and
small business 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:
- 2010 – Eliminated overdraft fees for consumer clients when
using debit cards at the point of sale
- 2011 – Introduced courtesy low balance alerts
- 2014 – Launched the SafeBalance "no overdraft fee"
account
- 2017 – Eliminated the extended overdrawn balance charge
- 2020 – Created Balance Assist, a low-cost solution to manage
short-term liquidity needs
- 2021 – Launched Balance Connect for overdraft protection,
letting clients link to up to five accounts to avoid
overdrafts
- Feb 2022 – Will eliminate
non-sufficient funds fees
- Feb 2022 – Will remove ability
for clients to overdraw their accounts at the ATM
- May 2022 – Will reduce overdraft
fees from $35 to $10
- May 2022 – Will eliminate Balance
Connect for overdraft protection transfer fee (formerly
$12)
"We remain committed to taking actions that will further bring
down overdraft fees in the future and continue to empower clients
to drive positive changes to behavior pertaining to overdraft,"
added O'Neill.
Essential Solutions
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:
- SafeBalance® – With SafeBalance, there are no overdraft
fees, and the monthly maintenance fee is waived for eligible
students under the age of 25 as well as for clients enrolled in our
Preferred Rewards program.
- Balance Assist – Balance Assist provides an affordable
way for clients to manage their short-term liquidity needs,
borrowing only the amount they need, up to $500 (in increments
of $100) for a $5 flat fee regardless of the amount borrowed.
Repayments are made in three equal monthly installments over a
90-day period. To learn more, review these additional product
details and eligibility criteria. Borrowers must have been a
Bank of America checking account client for at least one year.
- Balance Connect – Balance Connect allows our clients
overdraft protection through the ability to link up to five
accounts to their checking, while increasing simplicity and
accessibility through digital sign-up and management.
- BankAmericard® Secured Card – This credit card can help
clients establish, strengthen or rebuild credit, and they can apply
for an account with a security deposit starting as low as
$300. With responsible credit
behavior, over time, this could help clients improve their credit
score.
- Affordable Home Loans – In early 2019, Bank of America
launched its now expanded $15 billion
Community Homeownership Commitment, which has already helped 32,000
low- and moderate-income homebuyers achieve homeownership through
low down payment loans and down payment and closing cost grants. By
2025, Bank of America anticipates helping more than 60,000
individuals and families to purchase homes through the
program.
- Keep the Change® – This tool helps clients build savings
by automatically depositing spare change from rounded up debit card
transactions into a savings account. Over the last 15 years, this
program has helped clients direct more than $15 billion in excess change to client
savings.
- Better Money Habits® – A free financial education
platform that provides a simple, 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 has been recognized with more than 280 industry awards for
its innovation, financial technology, and delivering exceptional
client services and solutions.
Forward-Looking Statements
Certain statements
contained in this news release may constitute "forward-looking"
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. These forward-looking statements represent the
current expectations, plans or forecasts of Bank of America based
on 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 like
"expects," "anticipates," "believes," "estimates," "targets,"
"intends," "plans," "predict," "goal" 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 they are made, and Bank of America
undertakes no obligation to update any forward-looking statement to
reflect the impact of circumstances or events that arise after the
date the forward-looking statement was made.
Forward-looking statements represent Bank of America's current
expectations, plans or forecasts of its future 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 outcomes and results
may differ materially from those expressed in, or implied by, any
forward-looking statements. You should not place undue reliance on
any forward-looking statement and should consider all of the
uncertainties and risks discussed under Item 1A. "Risk Factors" of
Bank of America's Annual Report on Form 10-K for the year ended
December 31, 2020, and in any of Bank
of America's other subsequent Securities and Exchange Commission
filings.
Bank of America
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 66 million consumer and small
business clients with approximately 4,200 retail financial centers,
approximately 17,000 ATMs, and award-winning digital banking with
approximately 41 million active users, including approximately 32
million mobile 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.
For more Bank of America news, including dividend announcements
and other important information, register for email news
alerts.
Reporters May Contact:
Don
Vecchiarello, Bank of America
Phone: 770.361.2573
don.vecchiarello@bofa.com
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SOURCE Bank of America Corporation