Bank of America is considering a new overdraft-free checking account.
Bank of America is considering a new checking account that will prevent customers from withdrawing more money than they have in their account and getting hit with pesky overdraft fees.
Even if the new checking account is introduced, Bank of America will still offer its existing checking account — which will remain unchanged.
For more than two years, the bank’s checking accounts have not allowed customers to overdraw funds at the point of sale, like when you’re checking out at a cash register.
The new account would not only stop overdrafts from happening at the point of sale, but it would also prevent them from occurring on any other transactions, including ATM withdrawals, automatic bill payments and checks. Currently, customers are dinged with a fee of $35 each time they overdraw their accounts in these ways.
Bank of America (Fortune 500) declined to comment on any specifics. The Wall Street Journal first reported the news, but a source familiar with the bank emphasized that the account is just a consideration at this point and does not mean the bank is getting rid of overdraft protection altogether — it would simply be another option for customers. ,