Truist Reveals No-Overdraft Accounts | PYMNTS.com
Truist Financial Corporation is set to launch two new no-overdraft checking accounts, making it the latest in a string of banks to move away from this lucrative revenue stream.
The accounts will be part of Truist One Banking, which is expected to roll out this summer, the company announced in a press release on Tuesday (January 18).
In addition to no overdraft fees, the accounts will also offer a deposit-based line of credit – up to $750 – that does not rely on credit scores for qualification. Truist said that over the next few months it will also be waiving the Returned Item Transfer, Negative Account Balance and Overdraft Protection fees on all accounts.
Read more: More banks dropping lucrative overdraft fees
“Truist wants to change the way people think about banking by creating an experience around what matters most to them,” said Truist CEO Bill Rogers. “Guided by our purpose to inspire and build better lives and communities, we provide banking solutions that improve the financial well-being of our customers and create better pathways to financial inclusion for all.”
The company says these new services address some of the biggest challenges faced by its customers: rejected purchases at the point of sale, lack of access to short-term credit and the impact of unexpected charges.
“For customers who frequently experience overdraft issues, Truist will actively partner to offer assistance and share advisory advice regarding these new offerings,” the company said.
Truist said these changes, coupled with customer benefits from the new accounts, will help customers save about $300 million by 2024.
Read more: BoA to end NSF fees, lower overdraft fees to $10
As PYMNTS reported earlier this month, many banks in the United States have begun eliminating or changing overdraft fees, which brought in an estimated $15.4 billion in 2019, in a bid to compete. FinTechs at no cost and to appease customers and politicians.
Capital One lowered overdraft fees despite making about 0.5% of its revenue from them in 2020, while JP Morgan Chase, the nation’s largest bank, recently announced changes to its overdraft policy.
Last week, Bank of America announced it would eliminate the insufficient funds (NSF) fee and reduce overdraft fees from $35 to $10 starting in May.