Smaller banks are starting to reduce and eliminate overdraft and nonsufficient funds (NSF) fees.
The latest community bank to act is 1st Colonial Bancorp in Cherry Hill, N.J. The $698 million-asset company said in a press release that, effective June 1, reduced its overdraft and NSF fees from $35 to $15.
The company said overdraft fees will only apply to transactions that result in an overdraft balance greater than $50 at the end of the business day, with a maximum one-day charge of $30.
“Our commitment is to our loyal customers and providing valuable financial products and services paired with our deep financial expertise to help them achieve success,” Robert White, 1stColonial’s CEO, said in the release.
“This is an ideal time to provide additional support to our customers, and ensure we are minimizing the impact associated with incidental and unintentional overdraft situations,” White added.
The announcement comes as many large community banks and regional banks have reduced their fees. The Consumer Financial Protection Bureau has also indicated that it will take a closer look at fee structures.