A New Ban on Overdraft Fees

The Federal Reserve is providing more protections for consumers.

Starting next summer, banks won't be able to charge overdraft fees on ATM and debit-card transactions unless you opt in to an overdraft-protection service.

The Federal Reserve announced the ban November 12, and it will take effect July 1, 2010. Banks will have to provide customers who don't choose overdraft protection for ATM and debit-card transactions the same account terms and features (including pricing) as they provide to customers who do opt in, according to a press release from the Federal Reserve.

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Cameron Huddleston
Former Online Editor, Kiplinger.com

Award-winning journalist, speaker, family finance expert, and author of Mom and Dad, We Need to Talk.

Cameron Huddleston wrote the daily "Kip Tips" column for Kiplinger.com. She joined Kiplinger in 2001 after graduating from American University with an MA in economic journalism.