MidWestOne Bank Providing Flex to Avoid Overdraft Fees

Rhea-AI Summary

MidWestOne Bank, a subsidiary of MidWestOne Financial Group (NASDAQ: MOFG), has introduced a new initiative to reduce costs for customers by eliminating fees for small dollar overdrafts. The new feature, Overdraft Flex, allows eligible customers to avoid fees for overdrafts of $50 or less. Other enhancements include no fees for transactions of $5 or less causing overdrafts and a reduction in the maximum daily overdraft fees from five to four. This initiative aims to provide customers with more financial flexibility, alleviating stress during unexpected financial strains.

Positive

• Introduction of Overdraft Flex to eliminate fees for overdrafts of $50 or less.
• No fees for transactions of $5 or less that cause overdrafts.
• Reduction of maximum daily overdraft fees from five to four.

Negative

• None.

IOWA CITY, Iowa, May 02, 2022 (GLOBE NEWSWIRE) -- MidWestOne Bank, subsidiary of MidWestOne Financial Group, Inc. (Nasdaq: MOFG), today announced changes to save customers money by eliminating fees for small dollar overdrafts.

According to a national survey conducted in October 2021 on behalf of the American Bankers Association¹, one in four people say they have paid an overdraft fee within the last year; people across all income brackets are equally likely to have paid an overdraft in the past year; and post-grads are more likely to overdraw than those with a regular college degree or those without a college degree.

MidWestOne Bank understands that we all make mistakes, and we all need a little help from time to time–like covering an inadvertent overdraft. That’s why MidWestOne Bank has developed a new banking convenience to help customers get through an occasional squeeze on their checking balance called Overdraft Flex.

Overdraft Flex enables eligible* MidWestOne customers to avoid a fee when they overdraft by $50 or less.

In addition, all consumer checking customers will enjoy the following enhancements:

• There will be no charge for transactions of $5 or less that cause an account to overdraft.
• The maximum number of daily overdraft fees has been reduced from five to four.
• The $10 fee for transfers between deposit accounts to cover overdrafts has been eliminated.
  

“Studies show that nearly 25 percent of people, at one time or another, have had to purposefully overdraw their account to cover an expense,” said MidWestOne CEO Charlie Funk. “No one likes an overdraft, including the bank, but sometimes it’s unavoidable. Paying an overdraft fee on an amount under $50 is frustrating. Our goal for Overdraft Flex is to give our customers more financial flexibility, reduce stress, and save money,” he added.

¹https://www.aba.com/about-us/press-room/press-releases/aba-statement-on-cfpb-overdraft-research

About MidWestOne Financial Group, Inc.

MidWestOne Financial Group, Inc. is a financial holding company headquartered in Iowa City, Iowa. MidWestOne Financial is the parent company of MidWestOne Bank, which operates banking offices in Iowa, Colorado, Minnesota, Wisconsin, and Florida. MidWestOne provides electronic delivery of financial services through its website, MidWestOne.bank. MidWestOne Financial trades on the NASDAQ Global Select Market under the symbol MOFG.

Disclosure

*MidwestOne Bank consumer checking account must be enrolled in Occasional Overdraft Protection Service (OOPS) and meet qualifying direct deposit conditions. OOPS applies to checks, electronic fund transfers, automatic bill payments and other transactions made using the checking account. The bank will not include ATM and everyday debit card transactions within OOPS without first receiving the customer’s affirmative consent to do so. MidWestOne typically does not pay overdrafts if the account is not in good standing, the customer is not making regular deposits, or has excessive overdrafts. The customer account will be charged an overdraft fee of $35.00 for each item that overdraws their account in excess of $50.00. The bank retains full discretion to decline to pay any overdraft item under the OOPS service for any reason. All negative balances must be resolved within 35 days of the original overdraft. If the negative balance is not resolved within 60 days, the account will be closed. For additional program details see a banker.

Category: Financial

This news release may be downloaded from https://www.midwestonefinancial.com/corporate-profile/default.aspx

Source: MidWestOne Financial Group, Inc.

Industry: Banks

Contacts:

Greg Turner
Executive Vice President
Wealth Management and Corporate Communications
319.356.5923
gturner@midwestone.com

Peg Hudson
Senior Vice President
Marketing
563.589.0829
phudson@midwestone.com

Copyright © 2022 MidWestOne Bank. All rights reserved. Member FDIC. Equal Housing Lender.

FAQ

What is the Overdraft Flex initiative by MidWestOne Bank?

Overdraft Flex allows eligible customers to avoid fees for overdrafts of $50 or less, helping them manage small financial setbacks.

What fees has MidWestOne Bank eliminated for small overdrafts?

MidWestOne Bank has eliminated fees for overdrafts of $50 or less and for transactions of $5 or less that cause an overdraft.

How many daily overdraft fees can customers incur at MidWestOne Bank now?

The maximum number of daily overdraft fees has been reduced from five to four.

When was the announcement about the new banking convenience made?

The announcement was made on May 2, 2022.

What is the stock symbol for MidWestOne Financial Group?

The stock symbol for MidWestOne Financial Group is MOFG.