Wells Fargo to launch zero- and limited-overdraft fee accounts

The US-based bank will first offer a checkless account with a flat monthly fee of USD 5, which allows customers to only spend available funds but charge no fees for overdrafts or insufficient funds. The second limited overdraft account is a checking account with a USD 10-monthly fee, which will cap overdraft or insufficient funds fees at one per month. The accounts will become available starting in early 2021.

The bank said it plans to reach out to existing customers that may be having trouble with overdraft fees. The accounts are designed to meet a standard set by the Cities for Financial Empowerment Fund's Bank on National Account Standards. 

Wells Fargo collected about UDD 1.97 billion in overdraft fees in 2019, according to filings with federal regulators. Since 2016, the bank has offered a reloadable prepaid card called the Wells Fargo EasyPay account, which charges a USD 5 monthly fee and no overdraft fees.