*Every penny counts.” “Every dollar matters.” “Make sure that the count is accurate to the penny.” If you’re one who has at least one analytical and logical person in your family, then you’ve heard these stickler phrases relating to money once before.
The ironic part is, just as annoying as it is to hear this constantly, it’s more aggravating when they are right! When the evidence, or lack thereof is right in your bank account, reading $.00 or overdraft, that’s when it hits home hard.
According to CBS News via MSN, customers banking with the online bank: Ally, will no longer be charged a $25 overdraft fee no matter what type of account they hold, the company recently announced.
In addition to the new policy, Ally said fees for insufficient funds disproportionately harm low-income households living paycheck to paycheck, especially in Black and Hispanic families.
The amount of money banks make annually on overdraft fees is nothing short of millions of dollars. The decision to eliminate the fees was to simplify account usage, to promote healthier mental spaces, such as relieving stress and to promote equality across the board.
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MSN reports: Diane Morais, Ally’s consumer and commercial banking president says:
“Overdraft fees can be a major cause of anxiety; it became clear to us that the best way to relieve that anxiety was to eliminate those fees.”
Moral of the story: since it is no secret that banks and other mass financial institutions and corporations do not take a hit financially even during a pandemic and relieving many of the fees, action had to take place.
With that truth, Ally, Discover and other financial institutions have chosen to be on the side that prioritizes the help to struggling families over corporate profits.