Tuesday, March 11, 2014

Nonprofit lauds Bank of America for new checking account

Last week, Bank of America unveiled a new type of checking account that eliminates overdraft fees of any type in exchange for a $4.95 monthly payment. It's designed to cater to lower-income customers and provide an alternative to services like prepaid debit cards and check cashing.

Two nonprofit organizations under the same umbrella have now come out publicly to praise Bank of America for the plan.

The Center for Responsible Lending said Tuesday that the new checking account was "a more responsible approach to banking."

“CRL is heartened to see one of the nation’s largest banks continue to acknowledge the harmful effect of overdraft fees and offer a better structured and more predicable approach to accounts,” executive vice president Gary Kalman said in a statement. “This is an important step toward safe and fair banking practices.”

Self-Help Credit Union, which is affiliated with the Center for Responsible Lending, also applauded the new offering. It called the account "perhaps the best product available in the market today."

Martin Eakes, who is CEO of both organizations, is on the Bank of America National Community Advisory Council.

Neither organization mentioned the monthly fee, which cannot be waived. While free checking has become harder to come by, it is still available at some banks and credit unions.

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Sintia said...

New bank products are now highly demanded at the market. The reason is that big groups of people are not able to pay huge banks’ interests and fees. This new type of checking account as same as no credit check loans are beneficial to people with low income.

bryan flake said...

I can attest as one who has been hit with large overdraft fees etc. that no over draft fees associated with my account is enticing. I would have to try out the services to see how much it does and doesn't cost me over a certain period of time. Is Bank of America the only bank offering this service?

bryanflake1984| http://www.nbrs.com/personal/checking