Ethan Riley
The COVID-19 pandemic has resulted in job losses and financial stress for millions of people around the world. Many banks have stepped up to help their customers by waiving overdraft fees, among other types of assistance. For example, Ally Bank, Citizens Bank, and First National Bank of Omaha waived overdraft fees during the pandemic. While some banks waive overdraft fees automatically, customers often need to proactively reach out to their bank to have these fees waived.
| Characteristics | Values |
|---|---|
| Banks waiving overdraft fees | TCF Bank, Ally Bank, Citizens Bank, First National Bank, First National Bank of Omaha, KeyBank, PNC Bank, Santander, U.S. Bank, BBVA, MidFirst Bank, Associated Bank, Huntington National Bank, Regions Bank, Synchrony |
| Customers' role | Reach out to the bank in the event of an overdraft, as the fees might not be waived automatically |
| Other types of waived fees | Late fees, ATM fees, monthly maintenance fees, non-sufficient funds fees, early CD withdrawal fees, excessive transaction fees, service charge reversals |
Explore related products
What You'll Learn
Banks that waived overdraft fees during COVID-19
The COVID-19 pandemic has resulted in job losses and financial stress for millions of people. In response, some banks have voluntarily waived overdraft fees to help their customers stay afloat during these challenging times.
- Ally Bank: In addition to offering loan payment deferrals, the bank has waived overdraft fees and fees for excessive transactions.
- Citizens Bank: The bank has waived overdraft fees and service charge reversals.
- First National Bank: The bank has refunded overdraft fees for consumer deposit accounts upon request.
- PNC Bank: PNC has introduced programs to waive or refund overdraft fees upon request. They are also waiving or refunding several other deposit account fees.
- Santander: The bank has offered to refund overdraft fees and late payment fees.
- Truist: The bank has proactively waived or refunded overdraft fees on accounts receiving stimulus deposits.
- Bank of America: The bank has introduced programs to waive or refund overdraft fees upon request.
- Wells Fargo: Wells Fargo has implemented programs to waive or refund overdraft fees. They have also announced a new bank account option that will not incur overdraft fees.
It is important to note that these programs may be temporary and could be discontinued at any time. Customers are generally required to proactively reach out to their bank and request a waiver of overdraft fees. Additionally, some banks may require proof of financial hardship or that the customer has the funds to cover the overdraft.
While banks have taken steps to assist their customers, experts warn that overdraft fees could "balloon exponentially" as a result of the pandemic. This could lead to significant financial challenges for many individuals.
ICS: International Banking's Secret Code
You may want to see also
Explore related products
Tips for getting overdraft fees waived
During the COVID-19 pandemic, many banks waived overdraft fees and provided other types of assistance to help their customers. However, these programs were temporary and may have been discontinued. Nevertheless, here are some general tips for getting overdraft fees waived:
- Contact your bank as soon as you realize you've been charged an overdraft fee. Speak with a representative and explain your situation, whether it was due to an unexpected transaction or financial difficulties.
- If you rarely overdraft, call your bank and politely request that they waive the fee. Most financial institutions are forgiving when it comes to these fees, especially if it's not a regular occurrence.
- Sign up for overdraft protection by linking another account, usually a savings account, to your checking account. If you overdraw, funds will be pulled from the linked account to cover the difference, and the fee is usually much smaller than a standard overdraft fee.
- Opt out of overdraft coverage. In this case, your bank will simply decline any transactions that you can't cover with your account balance, preventing overdraft fees.
- Keep a cushion in your account and closely monitor your transactions and balances, including automatic payments. This way, you can avoid overdrafts altogether.
- If you can quickly get your account back into the positive after an overdraft, call your bank and politely ask if they can reverse the fee as a courtesy. Many banks will do this as a one-time courtesy, especially if you can prove that you have the funds to cover the overdraft.
Jos. A. Bank: A Brand Worth Trusting?
You may want to see also
Explore related products
Banks offering other fee waivers during COVID-19
During the COVID-19 pandemic, many banks offered their customers financial assistance and relief by waiving fees of various types. Here are some banks that waived fees other than overdraft fees:
- BBVA USA is offering special assistance to impacted consumer and small business customers, including penalty-free withdrawals from applicable CDs, ATM fee refunds, and payment deferrals, extensions, and waivers on existing loans and lines of credit.
- TCF Bank is offering payment deferrals on their loans without charging late fees.
- Ally Bank is waiving fees for excessive transactions.
- Citizens Bank is offering service charge reversals.
- First National Bank is refunding ATM fees for customers impacted by financial hardship.
- MidFirst Bank is waiving the MidFirst fee when customers use another bank's ATM.
- Associated Bank is not assessing late or over-limit fees on both consumer and small business credit cards.
- Huntington National Bank is not charging late fees on credit card payments for small business owners.
- Regions Bank is offering no late fees through its credit card payment relief program.
- Synchrony is offering waived fees and charges across credit card accounts.
- Barclays is offering waivers for late fees on credit cards.
- Capital One is offering assistance on minimum payments and suppression of fees.
- Discover is offering support related to payment timing, fees, and late payments for qualified customers.
- PNC Bank is offering assistance to customers who encounter financial hardship as a result of COVID-19.
Bank Run: Understanding the Rush for Withdrawals
You may want to see also
Explore related products
How to avoid overdraft fees
During the COVID-19 pandemic, many banks waived overdraft fees and provided other forms of financial assistance to their customers. However, these programs were temporary and may have been discontinued.
- Keep a Close Eye on Your Account Balance: This is one of the most effective ways to avoid overdraft fees. You can check your balance through online banking, mobile apps, or by setting up alerts to notify you when your balance falls below a certain amount.
- Understand Your Payment Methods: Knowing how different payment methods work can help you avoid overdrafts. For example, when you use a debit card, the merchant immediately checks if you have enough funds, but the transaction amount may take several days to be withdrawn from your account.
- Maintain a Transaction Register: Keep a record of all your deposits, withdrawals, and purchases. This will help you track your outstanding obligations and avoid overspending.
- Set Up Overdraft Protection: Many banks offer overdraft protection, where funds are automatically transferred from a linked account to cover overdrafts. However, ensure that the linked account has sufficient funds to avoid overdraft fees.
- Reevaluate Your Budget: If you're in dire financial straits, cut down on non-essential spending until your finances stabilise.
- Contact Your Bank: If you've been impacted by the pandemic, reach out to your bank and request a waiver of overdraft fees. Many banks are willing to work with their customers to provide financial relief.
UK Banks in Pakistan: Exploring Branch Presence
You may want to see also
Explore related products
Banks with low-fee accounts
During the COVID-19 pandemic, many banks realized their customers couldn't afford bank fees and, as a result, decided to waive overdraft fees, among other types of assistance. While most of these programs are temporary, it's worth contacting your bank to see if you're eligible for any assistance.
If you're looking for banks with low-fee accounts, here are some options:
Ally Bank
Ally Bank offers a Spending Account with no monthly maintenance or overdraft fees. You can get your paycheck up to two days early with direct deposit, and the bank provides access to over 43,000 no-fee Allpoint ATMs. Additionally, Ally reimburses up to $10 per month for out-of-network ATM fees. The account offers a higher interest rate than most big banks, with 0.10% APY on balances less than $15,000 and 0.25% APY on balances of $15,000 or more.
Capital One
Capital One 360 Checking account offers no monthly fees, no minimums, and no overdraft fees. It also has no foreign transaction fees, making it a good option for those who travel frequently. Capital One has hundreds of branch locations, including Capital One Cafés, where you can grab a coffee and speak to a representative.
Discover
Discover Cashback Debit Checking offers 1% cashback on up to $3,000 in debit card purchases each month. While there may be other fees, this account is a good option for those who want rewards.
Schwab Bank
The Schwab Investor Checking Account is ideal for investors as it seamlessly connects with a brokerage account, allowing you to manage your money in one place. There are no monthly fees, no minimum balance requirements, and you can earn interest on your checking balance. This account also offers unlimited ATM-fee reimbursements worldwide and no foreign transaction fees.
BMO
BMO's Smart Advantage Checking Account has no monthly maintenance fee as long as you opt for paperless statements. You get access to over 40,000 fee-free ATMs across the US and can use their digital banking tools to send, request, and receive money with no user fees.
Citizens Bank
Citizens Bank offers a "one deposit checking/savings" account. As long as you make a single deposit of any amount or type, there is no monthly maintenance fee.
Remember, it's always a good idea to review the fee structure of any bank account before opening an account and to be mindful that fee waivers may be temporary or require you to reach out to the bank proactively.
Banks or Exchange Stalls: Where's the Better Deal?
You may want to see also
Frequently asked questions
Yes, many banks are waiving overdraft fees during COVID. Some banks that have waived overdraft fees include Ally Bank, Citizens Bank, First National Bank, and PNC Bank.
To get overdraft fees waived, contact your bank immediately. Many banks will give a one-time courtesy fee removal and may continue to waive overdraft fees if you can prove you have the cash.
Banks are waiving a variety of fees during COVID, including late fees, ATM fees, monthly maintenance fees, and early CD withdrawal fees.
If your bank isn't waiving overdraft fees, you can try to negotiate with them to waive the fees or ask if they have a different account type without fees for the services you need. You can also consider switching to a bank that offers accounts with low or no fees, such as a Bank On certified account.
