BofA overdraft fees down 90% from year earlier

Bank of America in Charlotte, N.C., said its overdraft-service fees in June and July fell by 90% from a year earlier, reflecting policies designed to back off of such charges. 

The $2.2 trillion-asset BofA said in a Wednesday press release that consumer client overdraft fees made up less than 0.4% of its total revenue in the second quarter. 

For consumer accounts, the company eliminated nonsufficient funds (NSF) fees and reduced overdraft fees from $35 to $10. A checking account that lets customers avoid overdraft fees now represents about 45% of new account openings.

“Our scale, client focus and technology investments have allowed us to adopt policies and innovate in ways that help clients manage their everyday finances and liquidity needs on their own terms, while also delivering for our shareholders,” Holly O’Neill, Bank of America’s president of retail banking, said in the release. 

BofA said that, by next year, consumer overdraft fees will be down 97% from 2009 levels.

A growing number of banks are eliminating or reducing overdraft and NSF fees. Regulators, including the Consumer Financial Protection Bureau, are also giving more scrutiny to such charges.