Ally Financial became the first large bank in the United States to end overdraft fees on all its banking products.
The company announced the move on Wednesday, saying that the decision to eliminate them was because 80% of overdraft fees "are paid by consumers living paycheck to paycheck or with consistently low balances."
"This is a significant advancement for consumers as we live out our mission and live up to our name - being a true ally," Ally Financial CEO Jeffrey Brown, said in a news release. "Overdraft fees are a pain point for many consumers but are particularly onerous for some. It is time to end them."
Roughly 3.6 million checking, savings, and money market accounts will be affected by this, the Associated Press reported.