The news has been refreshingly good for bank customers lately. As the Federal Reserve raises short-term interest rates to fight inflation, yields on deposits are on the increase at some institutions-especially internet banks. (Large brick-and-mortar banks tend to raise rates more slowly, and many of them have ample deposits, minimizing their incentive to push up yields.)
What's more, big banks have made a spate of customer-friendly changes to their overdraft policies over the past year. Some, such as Ally Bank and Capital One, eliminated overdraft fees altogether. Others are lowering their fees, increasing the amount by which customers can overdraw their checking accounts without fees or allowing customers more time to get their balance out of the red before hitting them with fees. Chase, for example, has stopped charging an overdraft fee if an account is overdrawn by $50 or less at the end of the business day. And starting sometime this year, Chase customers who overdraw their accounts by more than $50 will have until the end of the next business day to bring their account balance to $50 overdrawn or less to avoid overdraft fees. Several banks are also adding the ability for customers to access direct-deposited funds from their checking accounts up to two days early.
Such changes are part of broader strategy banks are implementing to keep up with transforming customer expectations, according to research firm J.D. Power. Customers are visiting branches less often, and they're more frequently using digital services such as Zelle and Venmo to exchange money. "The decision to move from a punitive, carrot-and-stick approach suggests that retail banks are recognizing that the role they play in their customers' lives needs to evolve beyond service provider and into more of a hub of financial advice and guidance," J.D. Power concludes in a recent report.
Bu hikaye Kiplinger's Personal Finance dergisinin August 2022 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Giriş Yap
Bu hikaye Kiplinger's Personal Finance dergisinin August 2022 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Giriş Yap
FREE HELP FOR COLLEGEBOUND STUDENTS
This program’s mentors assist applicants as they fill out the FAFSA, write essays and more.
WHAT YOU SHOULD KNOW ABOUT SPOUSAL IRAS
You typically need earned income to contribute to an individual retirement account, but a spousal IRA provides an important exception to this rule.
SELLING SHARES? HERE'S HOW TO MINIMIZE TAXES ON YOUR GAINS
ET'S say you've been regularly buying shares in a booming tech company over the past few years, but now you want to start taking some of those profits, perhaps to rebalance your portfolio.
Strategies for Novice Investors
AS part of a lifes kills program for young, single mothers, I was asked to teach a class on how to get on top of your finances.
ANSWERS TO YOUR 529 PLAN QUESTIONS
Thanks to recent policy changes, families have more options for what to do with money sitting in these tax-advantaged accounts.
Rate-Cut Winners and Losers
NOW that the Federal Reserve has cracked the interest rate ice, the next development will be to separate winners from losers.
SHOULD YOU BUY THESE RED-HOT FUNDS?
Covered-call ETFs are popular but come with plenty of caveats.
DIVIDEND STOCKS ARE READY TO REBOUND
Our favorite dividend payers are poised to benefit as falling interest rates lure investors back.
IS A 55+ COMMUNITY RIGHT FOR YOU?
These age-restricted developments appeal to older adults seeking abundant amenities and an active lifestyle.
AT LONG LAST, RATES ARE DROPPING
Consider these portfolio moves now that the Federal Reserve has cut its benchmark interest rate.