First Citizens Bank Announces Changes to Nonsufficient Funds, Overdraft Fees

Rhea-AI Summary

First Citizens Bank has announced significant changes to its fee structure for consumer accounts, effective mid-2022. The bank will eliminate the nonsufficient funds (NSF) fee of $36 and reduce the overdraft fee from $36 to $10. As one of the first major regional banks to implement such changes, First Citizens emphasizes its commitment to customer relationships and financial well-being. The bank plans to continue offering tools for customers to manage their accounts more effectively, including digital banking alerts and various overdraft protection options.

Positive

• Elimination of $36 NSF fee enhances customer satisfaction.
• Reduction of overdraft fee from $36 to $10 provides financial relief.
• Proactive measures to help customers manage overdrafts can strengthen customer relationships.

Negative

• None.

RALEIGH, N.C., Jan. 26, 2022 (GLOBE NEWSWIRE) -- First Citizens Bank today announced a new approach to the fees it charges consumer customers for insufficient funds and overdrafts.

The Raleigh, North Carolina-headquartered bank will:

• Eliminate its nonsufficient funds (NSF) fee of $36. The NSF fee is charged when a transaction or check is rejected from an account that doesn’t have enough available balance to cover the transaction, and the item is returned unpaid.
  
• Significantly lower its overdraft fee from $36 to $10. The overdraft fee is charged when there are not enough funds in an account to cover the transaction, but the transaction is paid.
  

First Citizens is one of the first major regional U.S. banks and among the first of the top 20 U.S. banks to announce such changes.

“Relationships with our customers are paramount, and in times like these, we recognize that every dollar counts,” said John Turner, executive director of consumer services for First Citizens. “Our customers rely on us to help them make their budgets work harder. By reducing and removing fees, we’re providing more value than ever to those who trust us with their money and their futures.”

First Citizens will continue to proactively help customers avoid overdrafts to ensure funds are there when customers need them.

“Our bankers work diligently to have meaningful conversations with our customers about managing their accounts, reducing reliance on overdrafts and helping them prepare for the unanticipated,” Turner said.

The changes to the NSF and overdraft fees will take effect mid-year 2022. First Citizens also offers multiple ways for customers to ensure funds are available:

• Customers can keep tabs on accounts through First Citizens Digital Banking and set up account and card alerts.
• First Citizens offers several forms of overdraft protection, including Savings Overdraft Protection, Overdraft Line of Credit, Basic Overdraft Protection and Basic Plus Overdraft Protection.
• First Citizens direct deposit service offers the convenience of recurring automatic deposits into accounts, providing access to funds sooner.
  

Customers in First Citizens Bank markets interested in opening checking accounts online can visit firstcitizens.com/personal/checking.

There will be no changes for the bank’s CIT division customers for now. OneWest Bank and CIT Bank branch customers will be able to take advantage of the changes once their accounts are converted to First Citizens Bank’s systems and operations. In January 2022, parent company First Citizens BancShares, Inc. and CIT Group Inc. completed their merger. CIT, CIT Bank and OneWest Bank now operate as divisions of First Citizens Bank.

About First Citizens Bank
First Citizens Bank helps personal, business, commercial and wealth clients build financial strength that lasts. As the largest family-controlled bank in the United States, First Citizens is continuing a unique legacy of strength, stability and long-term thinking that has spanned generations. Founded in 1898 and headquartered in Raleigh, N.C., First Citizens also operates a nationwide direct bank and a network of more than 600 branches in 22 states. Industry specialists bring a depth of expertise that helps businesses and individuals meet their specific goals at every stage of their financial journey. First Citizens Bank brings together personal service and powerful tools to help customers do more with their money – and make more of their future. Visit firstcitizens.com. First Citizens Bank. Forever First^®

Contact:	Frank Smith
	First Citizens Bank
	(919) 716-4121

FAQ

When will First Citizens Bank's new fees for overdrafts take effect?

The changes to the NSF and overdraft fees will take effect mid-year 2022.

What is the new overdraft fee for First Citizens Bank customers?

The new overdraft fee will be reduced from $36 to $10.

Is First Citizens Bank eliminating the NSF fee completely?

Yes, First Citizens Bank is eliminating the nonsufficient funds (NSF) fee of $36.

How will these changes affect First Citizens Bank customers?

Customers will benefit from reduced fees, leading to potential financial savings and improved cash flow management.

What options does First Citizens Bank offer for overdraft protection?

First Citizens Bank offers several forms of overdraft protection, including Savings Overdraft Protection and Overdraft Line of Credit.