Pinnacle Financial Partners in Nashville, Tenn., has joined the expanding list of banks cutting and eliminating overdraft and nonsufficient funds (NSF) fees.
The $39.4 billion-asset company said in a press release that it will eliminate the NSF fee for returned items for consumer accounts and reduce the NSF returned item fee from $38 to $30 for business accounts.
Pinnacle will lower the overdraft fee for paid items from $38 to $30 for consumer and business accounts. It will also introduce an overdraft cushion of $15 for consumers and lower the maximum number of daily overdraft paid item charges from five to three for consumers.
The changes will take place on Aug. 1.
“Fee reductions and the introduction of a cushion should make a significant difference to those who use it most often,” Terry Turner, Pinnacle’s president and CEO, said in the release.
Pinnacle said it expects the changes will result in an annual revenue loss of about $3 million.
“While Pinnacle doesn’t rely on fee income from overdraft and NSF as much as many other banks because we focus on commercial clients, we believe these changes will lead to even greater client loyalty,” Turner said. “We also think making these modifications to our fee practices will help prepare us for new regulations that may come in the future.”