Citizens Financial Group has launched a feature designed to help customers avoid overdraft fees, joining a growing roster of banks that are weaning themselves from that revenue stream.
Citizens Peace of Mind automatically reverses overdraft fees if customers deposit or transfer enough money to bring their accounts to a positive balance by the end of the next business day. Citizens said Thursday that the feature was added to all of its checking accounts as of Oct. 1.
In addition, the $185 billion-asset bank plans to roll out a new checking account specifically intended to meet affordability standards for low-income consumers, Citizens said. That product, which the Providence, Rhode Island, company expects to debut in the first quarter of 2022, will not charge overdraft fees.
“Life can be hectic, and we believe a bank should operate as a transparent and trusted financial partner, helping customers keep more of their hard-earned money in their pockets,” Brendan Coughlin, Citizens’ head of consumer banking, said in a press release. “Through financial literacy and empowerment, the banking community has a responsibility to help all Americans reach economic security.”
The forthcoming Citizens account has been certified by the Cities for Financial Empowerment Fund for meeting its Bank On standards. More than 100 banks now offer such accounts, which include a free debit card, free bill pay and unrestricted branch and ATM access, in addition to the promise of no overdraft fees. Regions Financial in Birmingham, Alabama,
Numerous large and midsize banks, including PNC Financial Services Group, Ally Financial, Cullen/Frost Bankers and Huntington Bancshares,
