TD Bank has been redoing its overdraft fee policies, the CBC reported Tuesday (Feb. 1), and customers will be able to now overdraw their accounts by up to $50 before they get an overdraft fee.
Per the report, customers who overdraft more than $50 will have 24 hours to bring their account in line before TD Bank charges a fee.
TD Bank also reportedly plans to cut out the transfer fee for customers using savings overdraft protection services, with alerts and notifications sent to those whose account balances are getting low, helping them take action if possible.
All of this comes as the bank agreed to pay $122 million to settle with the Consumer Financial Protection Bureau (CFPB) over overdraft fee issues.
“These enhancements are designed to give customers more control over their finances — helping them make financial decisions that are best for them, better manage their money and minimize overdrafts,” said Matt Boss, head of consumer products at TD Bank.
This is a trend that has been going on for a while, with several newer banks taking the hint from the CFPB and no longer charging fees when customers spend more than what’s in their account. Other banks that have done so include Regions Bank, Bank of America, J.P. Morgan Chase, Capital One and Ally Bank.
Truist, PYMNTS writes, has unveiled “no overdraft” accounts, which is another example of banks moving away from what was once a fruitful income source. The accounts will reportedly be part of Truist One Banking, the bank said earlier this month.
Read more: Truist Unveils No-Overdraft Accounts
The accounts come with a lack of overdraft fees and will offer a deposit-based line of credit up to $750, which won’t come with credit score qualifications.
In the next few months, Truist plans to discontinue returned item, negative account balance and overdraft protection transfer fees for every account.
We’re always on the lookout for opportunities to partner with innovators and disruptors.
Learn More