Chase expands protections against bank overdrafts
Jpmorgan Chase & Co. is taking steps to help customers save on overdraft fees and get access to their paychecks early, part of a broader move by banks to offer more convenience and save them money.
The bank, the largest private employer in Greater Columbus and the second biggest bank in the region when it comes to market share behind only Huntington Bancshares, is allowing customers to access their direct-deposited paycheck up to two days early.
That means workers who normally gets paid on Friday could get access to their check as soon as Wednesday.
Also, in the case of customers who
overdraw their accounts, the bank is giving customers until the end of the next business day to bring their overdrawn balance to under $50 to avoid fees from the previous day.
Both changes will go into effect next year.
“We really want to make sure we offer a bundle of services we believe is fair and has our customers’ back,” said Jennifer
Roberts, Chase’s CEO of consumer banking.
It’s an extension of more liberal overdraft policies Chase has put in place recently.
In one change, Chase said it would no longer charge overdraft fees for accounts overdrawn by $50 or less. Before that, it had been $5.
It also said customers would no longer be charged a fee if Chase doesn’t pay a check or electronic payment because the customer doesn’t have enough money in their account.
Banks are increasingly reducing overdraft fees and giving customers early access to their paychecks or other regular direct deposits.
Chase said 2 million customers have saved on average $60 in bank fees since the recent changes have been made.
Roberts said there are multiple reasons why consumers overdraft their accounts ranging from not managing their money well to forgetting about a bill coming due to an unexpected expense.
The new services are in response to requests from customers, she said. mawilliams@dispatch.com @Bizmarkwilliams