Truist Financial Corporation will launch two new checking accounts with no overdraft fees, becoming the latest in a string of banks to steer away from this lucrative revenue stream.
The accounts will be part of Truist One Banking, which is due to launch this summer, the company said in a press release Tuesday (January 18).
In addition to the lack of overdraft fees, the accounts also offer a deposit-based line of credit — up to $750 — that doesn’t rely on credit scores for qualification. Truist said it will also end return shipping fees, negative balance and overdraft protection transfer fees for all accounts in the next few months.
Read more: More and more banks are forgoing lucrative overdraft fees
“Truist wants to change the way people think about banking by building 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 deliver 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 its customers face: purchases being refused at the point of sale, lack of access to short-term credit, and the impact of unexpected fees.
“For customers who frequently experience overdraft issues, Truist will be actively working together to offer assistance and provide advisory advice on these new offerings,” the company said.
Truist said these changes, coupled with customer benefits from the new accounts, will help customers save an estimated $300 million by 2024.
Learn more: BoA ends NSF fees, cuts overdraft fee to $10
As PYMNTS reported earlier this month, many U.S. banks have begun scrapping or changing overdraft fees, which raked in an estimated $15.4 billion in 2019, to compete with fee-free FinTechs and appease customers and politicians.
Capital One cut overdraft fees despite generating about 0.5% of its 2020 revenue from them, while JP Morgan Chase, the country’s largest bank, recently announced changes to its overdraft policy.
Last week, Bank of America announced it would eliminate NSF fees and reduce overdraft fees from $35 to $10 starting in May.
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