BOK Financial BOKF joins other U.S. banks in removing non-sufficient fund (NSF) and overdraft fees. As part of its efforts to enhance the financial well-being of its customers, BOKF recently announced that it would eliminate all NSF fees and reduce overdraft fees by the end of 2022.
The charges are levied by the bank when there isn’t sufficient money in an individual’s checking, or savings account to cover a processed transaction (overdraft fees) or rejected transaction (non-sufficient funds fees).
By the end of the year, the bank will reduce the maximum number of overdraft fees charged per day from five to three and increase the overdraft cushion to $50 from $5. Hence, the removal of such fees elevates customers’ financial strength.
Derek Martin, BOKF’s consumer banking services executive, noted, “We understand that managing your personal financial situation can be complex and that everyone needs a break from time to time.” He continued, “These changes will give our clients more control and increased flexibility.”
Earlier, the company removed fees for transfers between linked accounts, fees charged for accounts with a negative balance beyond five business days and excessive withdrawal fees on savings accounts. Also, in May, the company’s Opportunity Banking account received Bank On certification, reflecting features that ensure low cost, high functionality and consumer safety.
Of late, banks have been facing increased scrutiny from regulators and lawmakers for charging overdraft and other fees to consumers. Several U.S. consumer banks have been asked to eliminate all consumer overdraft fees to safeguard customers. BOKF’s actions align with such requests and bode well for the company in the long run.
Over the past year, shares of BOKF have gained 2% compared with the 8.1% growth recorded by the industry.
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Other Banks Taking Similar Steps
Several banks, including Bank of America BAC and Citigroup C, have stopped charging NSF fees and overdraft fees.
This January, Bank of America announced changes to its overdraft services, including plans to do away with NSF fees, effective February, and lower overdraft fees to $10 from $35 beginning in May. The company said that it would also remove transfer fees associated with its Balance Connect for overdraft protection service in May.
Since 2010, BAC has taken several steps to “empower its consumer and small business clients to bank with greater confidence and reduce overdraft usage.” The efforts have substantially lowered fees related to overdrafts.
In February, Citigroup announced that it would completely terminate overdraft fees, return item fees and overdraft protection fees by this summer, making it the largest U.S. lender to do so.
Citigroup’s overdraft fee collection has been among the lowest when compared with its peers. Other than a consumer-friendly overdraft policy, the banking giant continues to expand access to banking products and services, making banking more financially inclusive for underserved communities.
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