We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
JPMorgan (JPM) Introduces Tools to Avoid Overdraft Fees
Read MoreHide Full Article
Following the success of “new enhancements to checking accounts” (announced this August), JPMorgan (JPM - Free Report) has now come up with a few more features. Beginning 2022, the bank will offer more ways for Chase customers to avoid such fees.
The new “enhancements” include:
1. Providing customers early assess to direct deposits. This way, customers will be able to use their direct deposit payroll two business days in advance.
2. Offering a day to “catch-up.” Under this, JPMorgan customers will have time until the end of the next business day to bring their account balance back to $50 overdrawn or less. Hence, they will be able to overdraft service fees from the previous day.
JPMorgan noted that the new tools are part of its efforts over the past decade. These include launching no overdraft service fee bank account, Chase Secure Banking, processing customer’s debits in the same order as they occur and removing additional fees on accounts that are endlessly overdrawn.
Apart from the above-mentioned tools, JPMorgan, in August, had expanded the overdraft cushion to $50 from $5 and also eliminated the $34 fee (known as Returned Item Fee) that was charged in case Chase didn’t pay a check or electronic payment owing to insufficient balance in the account. The company noted that this helped more than 2 million customers save on overdraft service fees.
Jennifer Roberts, CEO of Consumer Banking division at JPMorgan, said, “We know that customers incur late fees on important bills. With overdraft, we help our customers avoid late fees and potential negative impacts to their credit score, and with debit card coverage customers can continue making purchases with their debit card.”
Shares of JPMorgan have rallied 26.4% so far this year, underperforming the industry’s rise of 34.8%.
It must be noted that the practice of charging overdraft fees and non-sufficient fund (NSF) fees by banks had drawn the ire of the U.S lawmakers at a Senate hearing this May. Following this, several banks have undertaken steps to either curb such fees or provided tools to their clients to limit the charges.
Last week, Capital One (COF - Free Report) announced eliminating overdraft fees and NSF fees for its consumer banking customers. This plan will become effective early next year. At that time, COF noted that it is the only one among the top-10 retail banks in the United States to take the step of totally eliminating overdraft fees.
Other than Capital One, many smaller banks like Ally Financial (ALLY - Free Report) and Regions Financial (RF - Free Report) , among others, have taken similar steps. Earlier this June, Ally Bank — the digital bank and a division of Ally Financial — had eliminated overdraft fees on all accounts, effective immediately. All ALLY customers were entitled to the same, with no additional requirement or conditions to be fulfilled.
Likewise, in October, RF, through its subsidiary, announced a new checking account with no overdraft fees – Regions Now Checking account. The account will charge a low, flat $5 monthly fee and offer traditional checking account features like check writing and mobile and online banking with bill pay.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
JPMorgan (JPM) Introduces Tools to Avoid Overdraft Fees
Following the success of “new enhancements to checking accounts” (announced this August), JPMorgan (JPM - Free Report) has now come up with a few more features. Beginning 2022, the bank will offer more ways for Chase customers to avoid such fees.
The new “enhancements” include:
1. Providing customers early assess to direct deposits. This way, customers will be able to use their direct deposit payroll two business days in advance.
2. Offering a day to “catch-up.” Under this, JPMorgan customers will have time until the end of the next business day to bring their account balance back to $50 overdrawn or less. Hence, they will be able to overdraft service fees from the previous day.
JPMorgan noted that the new tools are part of its efforts over the past decade. These include launching no overdraft service fee bank account, Chase Secure Banking, processing customer’s debits in the same order as they occur and removing additional fees on accounts that are endlessly overdrawn.
Apart from the above-mentioned tools, JPMorgan, in August, had expanded the overdraft cushion to $50 from $5 and also eliminated the $34 fee (known as Returned Item Fee) that was charged in case Chase didn’t pay a check or electronic payment owing to insufficient balance in the account. The company noted that this helped more than 2 million customers save on overdraft service fees.
Jennifer Roberts, CEO of Consumer Banking division at JPMorgan, said, “We know that customers incur late fees on important bills. With overdraft, we help our customers avoid late fees and potential negative impacts to their credit score, and with debit card coverage customers can continue making purchases with their debit card.”
Shares of JPMorgan have rallied 26.4% so far this year, underperforming the industry’s rise of 34.8%.
Currently, JPMorgan carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
What are Other Banks Doing?
It must be noted that the practice of charging overdraft fees and non-sufficient fund (NSF) fees by banks had drawn the ire of the U.S lawmakers at a Senate hearing this May. Following this, several banks have undertaken steps to either curb such fees or provided tools to their clients to limit the charges.
Last week, Capital One (COF - Free Report) announced eliminating overdraft fees and NSF fees for its consumer banking customers. This plan will become effective early next year. At that time, COF noted that it is the only one among the top-10 retail banks in the United States to take the step of totally eliminating overdraft fees.
Other than Capital One, many smaller banks like Ally Financial (ALLY - Free Report) and Regions Financial (RF - Free Report) , among others, have taken similar steps. Earlier this June, Ally Bank — the digital bank and a division of Ally Financial — had eliminated overdraft fees on all accounts, effective immediately. All ALLY customers were entitled to the same, with no additional requirement or conditions to be fulfilled.
Likewise, in October, RF, through its subsidiary, announced a new checking account with no overdraft fees – Regions Now Checking account. The account will charge a low, flat $5 monthly fee and offer traditional checking account features like check writing and mobile and online banking with bill pay.