WELLS FARGO: To Introduce No Overdraft Fee Bank Account and a Limited Overdraft Fee Account

Wells Fargo issued the following announcement on March 5

Wells Fargo today announced plans to introduce two new bank accounts, which will offer convenient, secure banking services and customer support while eliminating or limiting overdraft fees.

The first new account will be a checkless account, which will limit spending to the amount available in the account and customers will not incur overdrafts or insufficient funds fees. In addition, Wells Fargo will introduce an account that includes checks and will cap overdraft or insufficient funds fees at one per month. This account is designed for those who want controls to limit certain fees, as well as the protection an occasional overdraft provides. Both accounts are expected to be available by early 2021.

“Wells Fargo is listening to our customers to make sure we are delivering the financial products and services they want, and we are meeting their needs for fast, secure and convenient banking,” said Mary Mack, CEO of Consumer and Small Business Banking. “We know many consumers are seeking low-cost bank accounts that help them avoid overspending and keep to a budget, as well as access to all our mobile, online, ATM, branch and phone banking services. These new offerings will help us satisfy the financial needs of more customers and further expand access to mainstream banking services.”

The new checkless account’s features will help meet the needs of consumers who are new to banking, such as young people opening a first account, or those seeking an account that will help them manage spending. When it is available, Wells Fargo plans to proactively reach out to existing customers – including those who have experienced overdrafts – and educate them about the new product and its features. The account is designed to meet Cities for Financial Empowerment (CFE) Fund’s Bank On National Account Standards for safe and appropriate financial products that can help people enter or re-enter the mainstream financial system.

“Bank accounts are an important part of a person’s financial stability and foundational for economic mobility, yet millions of adults across the U.S. continue to rely on alternative, costly financial services,” said Jonathan Mintz, President and CEO of the Cities for Financial Empowerment Fund. “We appreciate Wells Fargo’s longstanding commitment to the Cities for Financial Empowerment Fund and our Bank On National Account Standards, and our collaboration over the years to connect people to safe and affordable accounts and financial coaching. We’re excited about Wells Fargo’s new checkless account and its potential in helping more U.S. households to affordably manage their financial needs and achieve their goals.”

The checkless bank account will have a flat monthly fee of $5 and will offer customers convenient features, at no additional cost:

• Access to Wells Fargo Mobile® app and Wells Fargo Online® banking, giving customers quick, convenient ways to monitor their accounts, pay bills and send money to family and friends. The mobile app features Control Tower ®, which provides customers a single, comprehensive view of their Wells Fargo digital financial footprint.
• Account alerts to help customers stay on top of their finances, including automatic zero balance alerts – sending emails to customers enrolled in online banking if their balance drops to zero.
• Zelle® , which allows customers to send and receive money with friends, family and others they trust who have a U.S.-based bank account, typically in minutes1 directly from one deposit account to another.
• A Wells Fargo Debit Card with added Zero Liability protection2 at no extra cost.
• Use of more than 13,000 ATMs across the country, each providing digital wallet access to funds and balance information.
• Full-service banking support offered by bankers face-to-face at approximately 5,400 branches throughout the U.S. and through Wells Fargo’s 24-hour Phone Bank.

Customers also will benefit from our automatic look-back service, in which a customer may avoid a returned payment and related merchant fees if the customer’s incoming direct deposit is sufficient to cover payments from the prior business day that would have otherwise been returned unpaid.

The additional account Wells Fargo is developing will have the same features listed above, but it will offer checks, have a $10 monthly service fee, and will cap overdraft or insufficient funds fees at one per month.

Original source can be found here.