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Why Bank of America’s $10 overdraft fee could catch on

January 11, 2022

Bank of America’s decision to slash its overdraft fee from $35 to $10 is likely to have ripple effects across the industry, analysts said, pressuring other banks to follow suit.

On its face, the megabank’s announcement Tuesday appeared less aggressive than the complete elimination of overdraft fees, a step that both Capital One Financial and Ally Financial have taken in the last seven months.

But Bank of America’s sheer size — its $3 trillion in assets make it the second biggest bank in the country — could push other banks to reduce what they charge customers who spend more than they have in their accounts, according to analysts.

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