Chase Announces Changes to Help Customers Avoid Overdraft Bank Fees in 2022

Chase has announced additional policy changes to reduce overdraft fees.

No one likes paying extra bank fees, especially overdraft fees. Some banks are changing their practices to minimize these fees. Chase made some changes earlier this year to reduce such fees for its customers. Now, the bank just announced additional changes that will help customers avoid overdraft bank fees in the new year. Keep reading to find out what to expect.

While banks can increase their revenue by charging extra fees, customers find these fees frustrating. In some cases, customers may switch accounts or go to a new bank to avoid paying costly fees. Banks are making changes to help keep customers happy.

This summer, we discussed how Ally Bank eliminated overdraft fees for its customers. This change was to prove their commitment to "Do Right."

Chase also made some changes earlier this year. Here's a look at some changes that Chase made to its checking accounts:

• Customers pay no overdraft fees when their accounts are overdrawn by $50 or less at the end of the business day.
• Overdraft fees only begin with the transactions that overdraw the account by more than $50 at the end of the business day.
• Customers pay no fees if Chase doesn't pay a check or electronic payment because the customer doesn't have enough money in their account.

But those aren't the only changes that customers can expect.

Additional policy changes to begin in 2022

Chase recently announced additional improvements that will benefit customers in the new year. These are the upcoming changes Chase announced:

• Customers will have until the end of the next business day to bring their balance back to $50 overdrawn or less to avoid overdraft services fees from the previous day.
• Customers will be able to use their direct-deposited payroll funds up to two business days early.

Chase hopes these improvements will encourage customers to bank with it. In addition to these updated overdraft fee policies, giving sooner access to direct deposit funds will offer customers more flexibility.

Bank fees can be expensive but can be avoided

It's essential to be aware of all fees your bank charges. If you take proper steps, you can eliminate extra bank fees. If not, you may feel additional financial stress when unexpected extra fees hit your account.

Overdraft fees can be costly, with many banks charging $30 or more. You can avoid overdraft fees by utilizing overdraft protection. Once you enroll in this service, instead of being charged insufficient funds fees when your account doesn't have enough money, your bank will pull the necessary funds from a separate linked bank account.

Before you open any bank account, make sure to review the fees and account terms. Not all banks charge the same fees or have the same rules, and some banks provide more flexibility that benefits the customer. You can minimize fees by banking with the right bank and choosing the correct account for your needs and personal finance habits.

Setting aside extra money in a savings account is a great way to prepare for future financial needs. If you want to open a new bank account to prioritize your savings goals, take a look at this list of top savings accounts.