Every year, U.S. bank customers spend millions of dollars in overdraft fees. But that’s coming to an end — at least for Citi customers. The country’s fourth largest bank on Thursday unveiled plans to end overdraft fees, making it the first major financial institution to end the controversial practice. “It’s great news because it helps consumers stay in the banking system and avoids them from being charged penalty fees at a time when they can least afford it,” says Pew Trusts officer Alex Horowitz. “And it gives them time to recover from a financial difficulty and get back on their feet. It can help keep households solvent.” Citi officials say when the new policy goes into effect this summer, they’ll continue to provide overdraft protection services to customers at no cost. “We’re tremendously proud to eliminate these fees altogether,” says Gonzalo Luchetti, CEO of US Personal Banking at Citi. “These changes empower our customers to build long-term financial wellness with access to more affordable banking services.” Given this news, are you considering transferring your money into a Citi account?
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