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

Published: Feb 25, 2022 6 min read
Line of people ready to use the ATM at Citibank
Getty Images

Another bank is eliminating overdraft fees — and this time, it's one of the biggest banks in the U.S.

By summertime, Citigroup, the owner of Citibank aka Citi, will follow the moves of other banks by completely getting rid of overdraft fees, as well as overdraft-protection and non-sufficient funds (NSF) fees. The new policy would make Citi the largest U.S. bank thus far to nix such fees, which are charged when a customer doesn't have an account balance high enough to cover a transaction.

Citi’s decision comes amid pressure from competing banks and from a federal watchdog agency.

The Consumer Financial Protection Bureau (CFPB) recently announced that it's cracking down on banks that are "heavily dependent" on such fees. The agency launched an initiative last month that encourages consumers to lodge complaints about the worst “junk fees” they’ve encouraged at financial institutions, including banks, credit unions and credit card companies.

"Junk fee" is a broad term that includes charges that were excessive, unexpected or confusing. NSF and overdraft fees certainly fit the bill.