Truist is waiving most of its overdraft fees

  • Truist plans to open two checking accounts with no overdraft fees and eliminate most existing fees.
  • Truist estimates that all of the changes will save its customers $300 million annually through 2024.
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The news: shop steward plans two to start

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with no overdraft fees this summer and has coupled this with the elimination of most overdraft fees for existing customers in the coming months.

US adults who have been charged an overdraft fee or minimum balance fee as per primary bank chart

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More on this: A product with no overdraft fee is called the Truist One Current Account, with additional features such as:

  • A balance-based line of credit of up to $750 available to all eligible customers.
  • A $100 negative balance buffer for eligible customers.
  • A premium reward component.

Truist’s other unnamed account is designed as an alternative to financial products like payday loans and cash checks. The company added that it will “bring many more households into mainstream banking and create a path to upgrade to Truist One.”

The bank is also eliminating the previous fees for overdraft protection transfers, returns and negative account balances. Truist estimates that all of its overdraft changes will save its customers $300 million annually through 2024.

Brant Standridge, Truist’s chief retail community banking officer, said the bank’s changes are the result of a months-long process that began by asking customers for feedback. Standridge also stressed that the changes go beyond avoiding overdrafts, citing credit access and rewards features.

trend spotting: Truist is the latest quite a number of major US banks to announce that it limits customers’ overdraft risk.

  • Wells Fargo revealed Five changes were made last week, including the elimination of insufficient funds (NSF) fees, the addition of a 24-hour grace period, and short-term loans of up to $500.
  • Also last week Bank of America announced that it would end its NSF fees while reducing its overdraft fee from $35 to $10.
  • JPMorgan Chase said last month that it is ending its return shipping fee and increasing the dollar amount customers can overdraw before charges are incurred.

The Big Takeaway: The breadth of Truist’s changes shows that it not only aims to reduce overdraft fees, but aims to help the types of customers do the same can have relied on it on overdrafting their accounts to come at short notice



Offering deposit-based lines of credit and a cash buffer are two important ways the bank can switch people to other sources of help. Additionally, the addition of a credit option for qualifying customers gives Truist the ability to replace lost fee income.

These changes give other banks a model for phasing out overdrafts while ensuring certain customers don’t trade one problem (the fees) for another (problems paying their bills):

  • This compromise is why JPMorgan rejected Completely eliminate overdraft fees while reducing risk.
  • The American Bankers Association (ABA) also expressed concern about the move away from overdraft fees in a letter to the Consumer Financial Protection Bureau (CFPB), the recently warned that it will go against the practice.

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