Bank of America ends overdraft fees

Updated

It sounds incredible, especially to those of us who have been covering the banking industry, but Bank of America is ending the practice of issuing overdraft fees.

The bank made the announcement late Tuesday, and it's expected that many banks will probably follow suit. The practice will end sometime in mid-June, according to The New York Times. So at some point this summer, if you try to pump gas, and your checking account is on empty, your gas tank will stay empty, too. Yes, your card will be declined.

For some people, this may come as a shock, but surely, for many others, this is going to come as a huge relief. It may be annoying to have your card declined, and it may cause a hassle, but it's also a hassle to realize your bank account is now $172 in the red because you made a couple of unwise purchases, not realizing your checking account was so low that your $3 taco has just cost you $39, or your $14 fill up at the gas station has meant shelling out an extra $37.50.

Overdrafts are only ending for debit card purchases. The fees will continue, for instance, if you have an automatic withdrawal for your mortgage or car insurance, and not enough money to cover them. Those will still go through, and you'll still get hit with an overdraft fee.

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