Bank fees update

Posted by: Live Smart   
September 23rd,

I am so glad to report that with credit card reform underway banks are modifying their overdraft free structure as well. As you remember, we have talked about overdraft fees before – how unfair and sneaky these can be. Now some big banks are taking a new look how these fees are applied and how they affect people. And they are taking action in the right direction.

Bank of America will be implementing new rule, where you can opt-out** from overdraft protection all together. This means that you will have to go to your branch of Bank of America and request opt-out from overdraft and after that when you use your ATM card and you do not have enough money, the purchase will be denied but you will not be charged $ 35.oo fee either. If you have not opted out, as long as your overage is less than $ 10.00, you will not be charged any fees, as long as you pay the bank back with in 5 days and get your balance back to positive.

JP Morgan Chase & Co is also going to reform their overdraft fees but no details are available at this time. If you are concerned about how your bank is currently handling overdraft fees, read the article linked to educate yourself more on the current trends, then call your bank and ask what is their current overdraft policy, what changes, if any,  are coming and request them to make overdraft fees more customer friendly. Make sure you understand whether your bank is opt-in* or opt-out in regards to overdraft fees and make necessary changes to your account based on your own preferences.

Next we will be talking about smart travel, how to decide what mode of transportation is best to your destination, how to find best deals on airfare and more. Post a question, if you want to know something specific :)

For more information on overdraft fee overhaul in some bigger banks click here.

*opt-in – when you specifically request to be included in the program

**opt-out – when you are automatically enrolled in the program and have to specifically request to be removed from the program.

This entry was posted on Wednesday, September 23rd, 2009 at 12:04 pm and is filed under Money. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

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