Monday, June 2, 2014

Key Bank Announces "No Overdraft Fee" Account

Key Bank announced today that it will offer a digital account with a debit card with no monthly fee and no overdraft fees ever.  They join Bank of America in offering a debit-only account that will never have an overdraft fee, although Bank of America charges a $4.95 monthly fee for the account. 

As John Gower of NerdWallet pointed out, such accounts are very uncommon, but do exist.  In addition to those above, Washington Savings Bank of Lowell, MA, offers a debit only account, and Capital One’s 360 card account can avoid overdraft fees and have overdrafts with a line of credit.  Other “no overdraft fee” marketers include historically non-banks like GreenDot’s GoBank, Simple, prepaid cards and payments providers.

More are recognizing that a large market segment exists for accounts that have no overdraft fees ever. HOWEVER, no banks other than our clients offer a full service checking account with paper checks and a line of credit using customer deposits and statement balances to document ability to repay a small line of credit over time.  And customers report they love the services and value.


It is time you see how PaySound® can drive revenues, relationships and payment relevance to your bank!




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