Many companies featured on Money advertise with us. Opinions are our own, but compensation and
in-depth research determine where and how companies may appear. Learn more about how we make money.

Author:
Published: Jan 11, 2022 3 min read
Facade of a Bank of America bank building
Getty Images

Bank of America customers who are sick of fees may breathe a sigh of relief in 2022. The bank says it will eliminate non-sufficient funds fees in February and lower its overdraft fees from $35 to $10 in May.

Overdraft fees kick in when your account’s balance isn’t large enough to complete a transaction, but the bank covers the bill. Starting in May 2022, Bank of America customers who incur this fee will be charged $10 instead of $35.

At Bank of America, non-sufficient funds (NSF) fees are traditionally charged when a transaction exceeds your available balance. The bank refuses the transaction, but still charges you a fee for not having enough funds available to complete it. This fee will be eliminated in February. That month, Bank of America will prevent customers from overdrawing their accounts at ATMs too.

Ads by Money. We may be compensated if you click this ad.AdAds by Money disclaimer
Get the help you need from a Financial Advisor now.
If you're crunched for time, find an online advisor that can help you while staying within your budget. Click on your state and find yours today.
HawaiiAlaskaFloridaSouth CarolinaGeorgiaAlabamaNorth CarolinaTennesseeRIRhode IslandCTConnecticutMAMassachusettsMaineNHNew HampshireVTVermontNew YorkNJNew JerseyDEDelawareMDMarylandWest VirginiaOhioMichiganArizonaNevadaUtahColoradoNew MexicoSouth DakotaIowaIndianaIllinoisMinnesotaWisconsinMissouriLouisianaVirginiaDCWashington DCIdahoCaliforniaNorth DakotaWashingtonOregonMontanaWyomingNebraskaKansasOklahomaPennsylvaniaKentuckyMississippiArkansasTexas
GET STARTED

Bank of America will also eliminate a transfer fee related to overdrafts. A service called "Balance Connect," available with most Bank of America checking accounts, is designed to help customers avoid overdraft fees by linking up to five other Bank of America accounts. When you don't have a large enough balance to complete a transaction, the bank transfers money from a linked account to cover the difference.

Normally, that transfer fee is $12, but it's being eliminated in May. However, the bank may still charge an overdraft fee if there aren't enough funds in your linked accounts to cover the transaction.

More banks eliminate overdraft fees

Bank of America is joining other large banks like Capital One, Ally Bank and Discover in taking moves to reduce or eliminate overdraft fees and other fees charged when customers don’t have available balances large enough to cover transactions.

The average overdraft fee is still about $35 across most large banks. So, if you’re covered by overdraft protection and you purchase a $5 coffee with a $0 available balance, you’ll have your coffee. But when the overdraft fee is added on, it means that $5 coffee actually sets you back by $40.

Many of the institutions on Money's "Best Banks" list have been getting rid of these fees, which have long been seen as a way to prey on low-income customers.

Ads by Money. We may be compensated if you click this ad.AdAds by Money disclaimer
Get the financial advice you need, without leaving your home.
An Online Financial Advisor can help you develop a sound and effective economic plan that works for you. Click below to learn more.
Get Started

More from Money:

5 Best Online Banks of 2021-2022

Capital One Wipes Out Overdraft Fees, Plus How to Avoid Them at Your Bank

5 Best Banks for Students of 2021-2022