Two banks cut or eliminate overdraft fees

By KEN SWEET
AP Business Writer

NEW YORK (AP) — Bank of America is slashing the amount it charges customers when they spend more than they have in their accounts and plans to eliminate entirely its fees for bounced checks. It’s the latest move by the nation’s biggest banks to roll back the fees they long charged customers to overdraft their accounts, fees that would often rack up to hundreds of dollars a year for frequent overdraft users. The Charlotte-based bank will cut the fee it charges customers to overdraft to $10 from $35 starting in May. It will also stop charging fees for non-sufficient funds — which are levied when it rejects a transaction — better known as “bouncing a check.”

Wells Fargo says it will give customers 24 hours to bring their balance above zero before charging them a $35 fee.

It will also start giving people access to direct deposit funds up to two days in advance.