BofA considers account that puts an end to overdrafts

  @blakeellis3 October 18, 2013: 2:51 PM ET
bank of america atm

Bank of America is considering a new overdraft-free checking account.


Bank of America is considering a new checking account that will prevent customers from withdrawing more money than they have in their account and getting hit with pesky overdraft fees.

Even if the new checking account is introduced, Bank of America will still offer its existing checking account -- which will remain unchanged.

For more than two years, the bank's checking accounts have not allowed customers to overdraw funds at the point of sale, like when you're checking out at a cash register.

Related: Overdraft fees cost bank customers hundreds a year

The new account would not only stop overdrafts from happening at the point of sale, but it would also prevent them from occurring on any other transactions, including ATM withdrawals, automatic bill payments and checks. Currently, customers are dinged with a fee of $35 each time they overdraw their accounts in these ways.

Bank of America (BAC, Fortune 500) declined to comment on any specifics. The Wall Street Journal first reported the news, but a source familiar with the bank emphasized that the account is just a consideration at this point and does not mean the bank is getting rid of overdraft protection altogether -- it would simply be another option for customers.

Related: How your checking account stacks up To top of page

Join the Conversation
Overnight Avg Rate Latest Change Last Week
30 yr fixed4.28%4.26%
15 yr fixed3.30%3.30%
5/1 ARM3.35%3.30%
30 yr refi4.32%4.25%
15 yr refi3.35%3.29%
View rates in your area
Find personalized rates:
Rate data provided
CNNMoney Sponsors
Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer LIBOR Warning: Neither BBA Enterprises Limited, nor the BBA LIBOR Contributor Banks, nor Reuters, can be held liable for any irregularity or inaccuracy of BBA LIBOR. Disclaimer. Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.