Checks provided on or after Aug. 20 will be returned unpaid, and payments processed as a check using a savings account may be turned down. Bank of America first alerted clients of the change in June. The change will encourage consumers to use their cost savings account as a place to conserve, and help them prevent transaction limitations, the bank stated in a statement.
It's unusual for banks to allow customers to compose checks on their cost savings accounts, because checking accounts are created for that explicit function, stated Ken Tumin, founder and editor of, a checking account comparison site owned by Loaning, Tree. "It's extremely rare to have that type of check writing ability," he stated.
The feature was little-used by consumers, Bank of America stated. Simply 1% of cost savings account holders were writing checks from their cost savings accounts, and those clients were writing approximately simply 4 checks a year. Hannah Lang covers banking and financial equity for The Charlotte Observer. She studied service journalism at the University of North Carolina at Chapel Hill and grew up in the very same town as her alma mater.
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By Paul R. La Monica, CNN Service Fees for bounced checks or doing not have adequate cash in your account might quickly be a distant memory. Bank of America is the current major financial organization to reveal that it is ending costs for insufficient funds. https://pbase.com/topics/spainact5/dont_bank_on_a_cleared_ch plans to cut overdraft fees from $35 to $10.
The overdraft cost reduction will start in May. Bank of America said that as soon as all these most current modifications enter into effect, the bank will end up slashing its charges for overdrafts by 97% from 2009 levels. "Over the last decade, we have made significant changes to our overdraft services and options, decreasing clients' dependence on overdraft, and supplying resources to help clients handle their deposit accounts and general financial resources responsibly," stated Holly O'Neill, president of retail banking for Bank of America, in the release.