x
Breaking News
More () »

Banks beginning to reduce or eliminate overdraft fees

Almost a dozen major banks have now greatly reduced or eliminated overdraft fees.

TEXAS, USA — When money is tight, there's nothing more aggravating than bouncing your checking account.

It can mean fees and penalties. But the good news is that's finally changing!

So you hit the ATM or pay your car loan, and bam...you get a note from your bank that you're overdrawn.

For years that meant an overdraft fee, which was on average about $33.

On top of that, non-sufficient funds fees could make that $10 lunch cost as much as $100.

RELATED: Why millions of people are still waiting for their tax refunds

But some banks are reducing or completely eliminating those fees, according to Bankrate's website.

Those banks include Bank of America, Wells Fargo, US Bank, PNC Bank, Ally Bank, Citibank and Capital One.

But there is one downside to some of these changes.

Bankrate says some banks will not deny your transaction if it appears you're about to overdraw your account.

RELATED: Rising mortgage rates forcing buyers out of the market

That can create a big problem if your car payment gets denied.

So Bankrate says to ask about overdraft protection, where the bank automatically transfers money from your savings account or provides a small loan to carry you over.

So if your bank still has overdraft fees, look for another that doesn't, so you don't waste your money.

KHOU 11 on social media: Facebook | Twitter | Instagram | YouTube

Before You Leave, Check This Out