Citi becomes the first major US bank to remove overdraft fees
Citi becomes the first major US bank to remove overdraft fees

Citi becomes the first major US bank to remove overdraft fees

CITIGROUP has become the first major retail bank in the United States to announce that it will eliminate its overdraft fees.

It comes as the accusers hit record highs last year, as U.S. households struggled financially during coronavirus pandemic.

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More and more banks are starting to announce plans to eliminate overdraft feesCredit: Getty

Citi said today, February 24, that it will eliminate overdraft fees, returned goods fees and overdraft fees by “this summer”.

Customers are currently being charged $ 34 when they dive into the red.

The bank said customers who overdraw their accounts can bring their balance above zero by setting up free, automatic transfers from a savings account or, in approved cases, accessing a line of credit.

For customers who do not have these options set up, the bank said it will reject fees at ATMs and points of sale that overdraw an account.

Which other banks charge overdraft fees?

Citi claims to be the only top five US bank, based on assets, to completely eliminate these fees.

Meanwhile, Bank of America and Wells Fargo in January announced plans to help customers with overdrafts by reducing fees.

As of May 2022, Bank of America will cut the overdraft fees it charges customers from $ 35 to $ 10.

Bank of america also plans to eliminate fees for insufficient funds, remove customers’ ability to overdraw their accounts with ATM transactions, and scrap transfer fees for a program that lets customers link other accounts to avoid overdrafts.

Wells Fargo will also do away with overdraft fees and fees for rejecting checks from March 30th.

Customers who overdraw from their accounts will have 24 hours to bring their balance above $ 0 before being charged a $ 35 fee.

On December 1, 2021, Capital One also announced that it is completely eliminating overdraft fees.

Ally Bank was the first major US bank to let go of all overdraft fees in June last year.

What are other banks’ overdraft fees?

Many people may wonder if other banks will follow the lead of Ally Bank, Capital One, Bank of America, Wells Fargo and Citi.

It has not yet been determined and overdraft fees are still a part of many people’s present.

Below is a list of some banks that still charge overdraft fees:

  • BB&T: $ 36
  • Charles Schwab: $ 24
  • Chase: $ 34
  • Citizen Banks: $ 37
  • FifthThird Bank: $ 37
  • NavyFederal Credit Union: $ 29
  • PNC Bank: $ 36

The Sun also explains Dave Ramsey’s seven easy steps to pay off debt and get the economy on track.

Last year, a practicing nurse revealed how she was inspired to pay off $ 260,000 worth of debt in just eight months with his help.

In addition, we reveal about banks can take your stimulus check to pay your overdraft.

My only goal was to have £ 1m in my bank account – and when I got it I would earn £ 2m says Molly-Mae Hague

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