First Interstate Bank has announced significant changes to our consumer overdraft practices, reducing fees and giving clients flexible options to meet their personal financial needs. This includes the elimination of non-sufficient funds fees and a reduction of overdraft fees.
“At First Interstate Bank, people are — and have always been — our number-one priority,” said Kevin Riley, President and CEO of First Interstate Bank. “We know how easy it can be to make a withdrawal or purchase, only to find out too late there’s not enough in an account to cover the transaction. The enhancements to our overdraft processes will give our clients more financial flexibility, and we hope it inspires other banking organizations to follow our example.”
As of April 1, First Interstate will launch the following changes:
- Elimination of non-sufficient fund charges
- A reduction in overdraft fees from $30 to $10
- Limit the maximum number of daily overdraft charges to 4 per day
- Provide a grace amount of $50 before any fees are assessed
- No overdraft charges for any purchase under $5
- The elimination of continuous overdraft fees and transfer fees between deposit accounts
- Free transfers from savings to checking to cover overdrafts
First Interstate also offers a robust overdraft line of credit service, which will remain in place to ensure clients have an additional layer of protection. In addition, this spring First Interstate will launch a checkless account that can’t be overdrawn and includes debit and online banking access.
“Our clients need a banking partner that provides support when they need it most,” said Marcy Mutch, Chief Financial Officer. “As an advocate for the clients we serve, we’re excited to live our values by reducing and removing these charges. This will amplify the positive impact First Interstate has on the places we call home.”
Giving back has been at the heart of First Interstate’s values since its inception more than 50 years ago. Each year, First Interstate donates 2% of pre-tax earnings to the communities it serves. These funds are put into action to mitigate poverty, improve workforce development, boost early childhood education, and more. First Interstate also supports its communities by offering additional philanthropic support through donations, sponsorships, and volunteerism. More information can be found within First Interstate’s Community Responsibility Report.
For consumers looking to guard against overdraft fees, consider the following tips:
- Research your options. When deciding on a checking account, consider features like minimum balance requirements, overdraft fees, and maintenance costs. There are checking accounts available with low overdraft fees or that don’t allow overdrafts at all.
- Set up alerts. Receive a text or email when your account balance drops below a set amount. The right banking partner can also provide regular balance updates as well as notifications of large withdrawals or deposits — helping clients to stay on top of account activity as it happens.
- Link to other accounts. Ask a banker to set up automatic transfer of funds from a savings or credit card account when a checking account balance falls below a target amount.