Huntington Introduces 24-Hour Grace® for Business and a No Overdraft Fee $50 Safety Zone for Consumers and Businesses

Rhea-AI Summary

Huntington has announced two new overdraft protection features: the 24-Hour Grace for Business and a No Overdraft Fee $50 Safety Zone. These initiatives aim to assist customers during the pandemic's economic challenges. The 24-Hour Grace allows customers to avoid overdraft fees if they deposit funds by the next business day. The $50 Safety Zone eliminates fees for overdrafts of $50 or less, up from a previous limit of $5. CEO Steve Steinour emphasizes that these changes reflect Huntington's commitment to customer financial well-being and follow a decade of its Fair Play Banking initiative.

Positive

• Introduction of 24-Hour Grace waives overdraft fees if deposits are made the next day.
• Increased Safety Zone limit for overdrafts from $5 to $50, reducing fee incidence.
• Commitment to customer financial health during the pandemic.
• CEO emphasizes customer-centric philosophy potentially enhancing customer loyalty.

Negative

• None.

COLUMBUS, Ohio, Sept. 14, 2020 /PRNewswire/ -- In direct response to customer feedback, Huntington (Nasdaq: HBAN; www.huntington.com) today announced two new features in its overdraft-protection lineup: 24-Hour Grace for Business and a no overdraft fee $50 Safety Zone.

To help customers navigate the current recession caused by the pandemic and manage their long-term financial health, Huntington is providing additional and ongoing support for businesses and consumers. In 2010, Huntington separated from the industry when it introduced its "Fair Play Banking" approach as a bold commitment to do the right thing for its customers. A decade later, Huntington, the nation's No. 1 Small Business Administration 7(a) lender by volume, is reaffirming its commitment to looking out for people by adding new features that help them avoid paying overdraft fees at a time when they may need it most.

"This is an important moment. Exactly 10 years ago this month, we made a commitment to do more to look out for our customers' financial well-being at a critical time. A decade later, we're doubling down on our 'Fair Play Banking' philosophy to help people," said Huntington CEO Steve Steinour. "While we are again forgoing some fee income with 24-Hour Grace for Business and a no overdraft fee $50 Safety Zone, doing the right thing is also good business. We believe it will not only help us grow, but also demonstrate that we put our customers at the center of all we do."

24-Hour Grace Available for Consumers and Business Customers
24-Hour Grace is the first and only service of its kind that gives consumer, business and commercial customers additional time to cover overdrafts on their checking accounts. With 24-Hour Grace, Huntington will automatically waive the overdraft fee as long as the customer makes a deposit during the next business day to resolve the overdraft. 24-Hour Grace is available for free on all Huntington consumer, business and commercial checking, savings and money market products.

No Overdraft Fee $50 Safety Zone for Consumers and Businesses
Huntington is also introducing a no overdraft fee $50 Safety Zone that is safe from overdraft fees as long as the account is overdrawn by $50 or less. When consumer or business customers overdraw their accounts, they will now have a no overdraft fee $50 Safety Zone before seeing an overdraft fee – an increase from the previous $5 limit.

"Our customers continue to influence our new products and services, and we're making bold moves as part of our ongoing commitment to put them first," said Andy Harmening, Huntington's director of Consumer and Business Banking. "Extending 24-Hour Grace to our businesses and offering a no overdraft fee $50 Safety Zone, across all deposit products, will save our customers millions of dollars every year at a time when they need it most."  

Long History of "Fair Play Banking"
Following the Great Recession, Huntington introduced a contrarian approach to business that was driven by doing the right thing for customers. It included distinctive consumer features like 24-Hour Grace, Asterisk-Free Checking and other options to look out for people's financial well-being. Since then, Huntington launched innovations that include The Hub, the bank's digital-banking experience, Huntington Heads Up®, a digital messaging platform, and Money Scout^SM, an automatic savings tool that scans customers' accounts and looks out for money they can set aside without missing it. These free tools are designed to help customers save more money, manage their spending and keep their financial goals front and center.

Huntington is also investing in its communities to support economic inclusion and to help make customers more financially secure in the future. The bank recently announced a new, five-year, $20 billion Community Plan that is focused on economic opportunity for people, small businesses, and communities throughout its seven-state footprint. Plus, Huntington helped more than 37,000 customers with Paycheck Protection Program loans, further demonstrating its support and commitment to looking out for people.

If your account is overdrawn, we'll give you more time to make it right to avoid the overdraft fee. To find out how 24-Hour Grace® works, visit huntington.com/Grace. For the no overdraft fee $50 Safety Zone, your account is automatically closed in 60 days if it remains negative.

About Huntington
Huntington Bancshares Incorporated is a regional bank holding company headquartered in Columbus, Ohio, with $118 billion of assets and a network of 839 full–service branches, including 12 Private Client Group offices, and 1,344 ATMs across seven Midwestern states. Founded in 1866, The Huntington National Bank and its affiliates provide consumer, small business, commercial, treasury management, wealth management, brokerage, trust, and insurance services. Huntington also provides vehicle finance, equipment finance, national settlement, and capital market services that extend beyond its core states. Visit huntington.com for more information.

 

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SOURCE Huntington Bancshares Inc.

FAQ

What are the new overdraft features introduced by Huntington (HBAN)?

Huntington has introduced the 24-Hour Grace for Business and a No Overdraft Fee $50 Safety Zone.

How does the 24-Hour Grace feature work for Huntington accounts (HBAN)?

The 24-Hour Grace allows customers to avoid overdraft fees if they make a deposit by the next business day.

What is the No Overdraft Fee $50 Safety Zone introduced by Huntington (HBAN)?

The No Overdraft Fee $50 Safety Zone eliminates fees for overdrafts of $50 or less.

When did Huntington (HBAN) announce the new overdraft features?

Huntington announced the new features on September 14, 2020.

What is Huntington's Fair Play Banking initiative?

Huntington's Fair Play Banking initiative is a commitment to prioritize customer financial well-being, established a decade ago.