On Monday Bank of America and JPMorgan Chase said they will reduce overdraft fees and overhaul checking account options. Overdraft fees mean billions of dollars for banks annually, but with  financial system reform in the national spotlight, consumers and lawmakers want banks to ease up on the penalties.

On Oct. 19, Bank of America says it will allow customers to opt out of the ability to outspend their accounts, and it will no longer charge fees for more than four items per day or on overdrawn balances of less than $10. Then in June, the bank will limit the number of times per year that consumers can overdraw their accounts using debit cards in stores. New customers will be able to opt out of overdrafts when they open accounts.

JPMorgan Chase will eliminate overdraft fees for debit cards unless customers opt in, and it will cut the maximum amount of overdrafts per day to three from six. It will no longer charge for overdrawn balances of less than $5.

[CNN]

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