Bank of America announced it will reduce the price of overdraft fees.
Starting in May, the company said the price of an overdraft fee will go from $35 to $10.
The bank also plans to eliminate non-sufficient fund fees in February and remove the ability for clients to overdraw their accounts at an ATM.
“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 at Bank of America.
Sen. Elizabeth Warren, who has been a vocal critic of big banks and overdraft fees, called Tuesday's announcement a step in the right direction but said the fees should be completely eliminated.
In December, Capital One announced it was eliminating overdraft fees.
Forbes reportsthat banks made more than $12 billion in 2020 from overdraft fees.
