NEW YORK–Wells Fargo has joined Bank of America in becoming the latest to announce it will significantly reduce its overdraft fee.
Like BofA, Wells Fargo said it will cut its OD fee to $10 from $35 beginning in May. It also plans to reduce the roughly $12 fees previously levied when customers used overdraft protection services.
Wells Fargo's Consumer and Small Business Banking CEO Mary Mack said in an interview the bank had taken its actions after studying customer spending data.
In addition to waiving certain fees, Wells Fargo said it will now also give customers who overdraw their accounts 24 hours to bring the balance above $0 before charging them a $35 fee, and it will begin giving customers who receive direct deposits access to those funds up to two days earlier than current practice.
As CUToday.info has reported, the move by two of the nation’s biggest banks follows similar decisions to reduce or eliminate overdraft fees. Capital One and JPMorgan Chase have also announced similar policies, as have several large credit unions.
CUToday.info has additional analysis of the Bank of America decision here.