Time for Banks to Offer Accounts With No Overdraft Fees Ever!

The Wall Street Journal reports today on bank overdraft fees paid by consumers of banks offering services in Walmarts.  It is time financial institutions wise up to offer checking accounts guaranteed to provide no overdraft fees ever!  No bank offers such an account today that would avoid even return check fee charges.  Some, like Bank of America, offer a debit card only account with no overdraft fees, but this is just a Reg E opt out account.

Offering no overdraft fees ever can drive new openings and new revenues to those that target this market because:

1.      Research shows 70% of consumers are motivated by a “no overdraft fee” ever account.

2.      They willingly will pay a monthly fee for such an account.

3.      It does not cannibalize any existing revenue because customers who pay most of the overdraft fees want accounts with overdraft services.

4.      Financial institutions can automate lines of credit to better serve some segments who want to avoid overdraft without requiring a credit score.

Check out here how some banks are successfully targeting the “no overdraft fee ever: segment and growing fees 30%+ at the same time!