Capital One announced it will completely eliminate all overdraft fees and non-sufficient fund (NSF) fees for its consumer banking customers. Capital One will continue to provide free overdraft protection.
Capital One is America’s 6th-largest retail bank and the only top-10 retail bank to make this move for all of its consumer bank products.
“The bank account is a cornerstone of a person’s financial life,” said Richard Fairbank, Capital One’s Founder and CEO. “It is how people receive their paycheck, pay their bills and manage their finances. Overdraft protection is a valuable and convenient feature and can be an important safety net for families. We are excited to offer this service for free.”
Fairbank continued, “Long ago, we set our sights on reimagining banking. Our award-winning checking accounts already feature no monthly fees and no minimum balance requirements. Eliminating overdraft fees is another step in our effort to bring ingenuity, simplicity and humanity to banking.”
Customers can choose whether or not to access overdraft protection. All customers currently enrolled in overdraft protection will be automatically converted to No-Fee Overdraft on the launch date in early 2022. Eligible customers who are not currently enrolled can enroll at any time. For customers not enrolled, transactions that would overdraw an account will be declined and no fees will be assessed.
“Capital One’s complete elimination of overdraft and NSF fees is a landmark moment for American families,” said Lauren Saunders, Associate Director, National Consumer Law Center. “This move by Capital One will have tremendous benefits for the most vulnerable consumers. It’s critical we keep working to make the banking system more inclusive and fair for all.”