Regions Bank cuts overdraft fees

Regions Bank announced Wednesday it is the latest bank to cut its overdraft charges and fees this year.

The Birmingham, Alabama-based bank, which operates the third biggest bank in Chattanooga, said it is eliminating overdraft protection transfer fees by the end of the first quarter of 2022. Such fees are incurred when money is transferred from linked accounts to cover overdrafts.

By the end of the second quarter of 2022, non-sufficient funds fees, also known as returned item fees, will no longer be charged and Regions will reduce the number of paid overdraft item fees that can be charged per day on consumer banking accounts.

By the end of the third quarter of 2022, Regions plans to make consumers’ paychecks available up to two days before their regular payday if their employer uses direct deposit and qualifying customers also will be able to access up to $500 to cover short-term needs through a new, lowcost borrowing solution.

“The changes we are announcing today complement many additional services and enhancements we have delivered in recent years, including the launch of the Regions Now Checking account with no overdraft fees, as well as improved account alerts, our enhanced time-order posting process, our constantly updated library of free financial wellness content, and more,” said Scott Peters, head of the Consumer Banking group for Regions Bank. “We succeed when our customers and communities succeed. That is our focus, and our commitment, every day.”

Also Wednesday, the nation’s fifth biggest bank, U.S. Bank, said it is eliminating some of its overdraft fees. Earlier this month, it stopped charging customers fees for non-sufficient funds in checking accounts.

By early this summer, it will also reduce the amount an account can be overdrawn from $5 to $50 before a fee is charged. In addition, it will also begin giving customers a full day to deposit funds to avoid an overdraft fee, which at U.S. Bank is $36.