Wells Fargo announced changes to its overdraft policy Tuesday, saying that it will give customers earlier access to direct deposits, a 24-hour grace period before incurring any overdraft fees and the elimination of non-sufficient funds fees by the end of the first quarter.
“Core to Wells Fargo’s evolution is making sure we stay focused on our customers, first and foremost,” said Mary Mack, CEO of Wells Fargo Consumer and Small Business Banking, in a statement. “The enhancements we’re announcing today add to changes we’ve made previously and give our customers more choice and flexibility in meeting their needs.”
Bank of America said that once all these latest changes go into effect, the bank will wind up slashing its fees for overdrafts 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 for Bank of America, in the release.
Ending the ‘overdraft show?’
Senator Elizabeth Warren lambasted JPMorgan Chase CEO Jamie Dimon last year for its fees, referring to him as “the star of the overdraft show.”
But JPMorgan Chase told CNN Business in December it has already taken some actions on overdraft charges and non-sufficient funds fees.
“We eliminated the non-sufficient funds fee and significantly increased the amount a customer can overdraw before overdraft fees are charged,” said Elizabeth Seymour, a spokesperson for the bank, last month. “These changes reflect our continuous efforts to offer the best, most competitive products and services our customers want.”
The bank also said in December that starting this year, it will give customers until the end of the next business day the chance to boost balances so they can avoid overdraft fees from the previous day.
JPMorgan Chase customers will also have access to direct-deposited paychecks up to two business days early.