Citi has announced plans to get rid of overdraft fees in a move that makes it the first major U.S. bank to completely eliminate the charges.
According to CNN, Citi plans to implement the change this summer. Alongside the elimination of overdraft fees, the bank will also say goodbye to insufficient funds fees and overdraft protection fees.
“This latest enhancement is a significant step for Citi as a leader in the banking industry offering the most consumer-friendly overdraft practices,” Gonzalo Luchetti, CEO of US Personal Banking at Citi, said in a statement. “We are continuously looking for ways to utilize our industry-leading capabilities to make the financial system easier and more equitable for communities who have little or no financial buffer.”
Among the top five U.S. banks—JPMorgan Chase, Bank of America, Wells Fargo, U.S. Bank, and Citi—the latter is the only one so far to do away with the controversial charges. Bank of America did recently move to significantly slash overdraft fees, announcing in January that it will drop its $35 fees to $10 starting in May, and also get rid of insufficient fund fees in February.
“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,” Holly O’Neill, Bank of America’s president of retail banking, said in a statement. “These latest steps will further support our clients and empower them to create long-term financial wellness. We remain committed to taking actions that will further bring down overdraft fees in the future and continue to empower clients to drive positive changes to behavior pertaining to overdraft.”