BofA cuts customer overdraft fees

JPMorgan Chase is engaging in a similar plan,The Wall Street Journal reported on Tuesday.

Effective October 19,Bank of America will not charge overdraft fees for an account overdrawn by less than 10 for a single day,or more than four overdraft items in a single day.

The bank will also make it easier for customers to opt out of allow overdrafts on accounts.

The second stage,to take effect in 2010,will introduce an annual limit for the number of overdrafts a customer may have,as well as requiring all new account customers to explicitly allow overdrafts to take place on their accounts.

For customers near their annual overdraft limit,the bank will provide education and unspecified tools centered on personal financial management.

The announcement comes a week after the Charlotte,North Carolina-based bank announced a credit card,called the Basic Card,with simpler terms and interest rates.

A company spokeswoman said the move was unrelated to outside political pressure,and had no projections on how this would impact the bank8217;s fee-based revenue.