This won’t make me popular but it makes sense

CNN Money posted an article today titled “BofA considers account that puts an end to overdrafts” which I think is a brilliant idea.  For those of you who have not been following the overdraft issue it may be difficult to appreciate this potential move by B of A but trust me when I say that this is a move in the right direction.  Banks earn money when people go into their overdraft by charging a flat fee per instance or per month.  The fees can be a few dollars per instance to a monthly charge of up to $5.00 in additional to interest rates that can run up to 21.0% per year.  This may not seem like a lot of money but across the portfolio of accounts that a bank would have this revenue can quickly add up. Continue reading “This won’t make me popular but it makes sense”