Citizens Bank announces new feature to help customers avoid overdraft fees

PROVIDENCE – Citizens Bank is the latest to join a growing number of financial institutions easing or rolling back overdraft fee policies.

The Providence-based bank on Oct. 7 announced a new deposit feature known as Citizens Peace of Mind, which allows customers to avoid getting charged for overdrafting their account. The policy, which was already added to all customers’ checking accounts on Oct. 1, lets customers reverse overdraft fees if they replace the missing funds within their account by the close of the next business day, the release states.

The feature also includes new technology that monitors and alerts customers about overdraft withdrawals.

Citizens also announced plans to roll out a new checking account in the first quarter of 2022 that has no overdraft fees and meets national standards designed to help people without access to traditional financial institutions to open accounts.

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A number of banks across the country have changed their overdraft policies, creating new, fee-free account options or, in some cases, abolishing overdraft charges entirely.

Nancy Lavin is a PBN staff writer. You may reach her at Lavin@PBN.com.