Bank of America ends overdraft fees on debit cards

Bank of America ends overdraft fees on debit cards
– Bank Of America Ends Overdraft Fees

NEW YORK – Bank of America customers will soon be unable to spend more than they have in the accounts linked to their debit cards. It's a step that may become a common move ahead of new regulations limiting overdraft fees.

Rules set by the Federal Reserve that will ban banks from charging such fees, without first getting permission from the customer, are set to take effect July 1.

But Bank of America is going a step further than the regulations require. It will simply no longer allow debit card purchases to go through if there isn't enough money in the account.

For ATM transactions, customers who try to withdraw more than their balance will have to agree to pay a $35 overdraft fee before they can get the money.

"The majority of our customers who overdraw their account do so with everyday debit purchases," said Susan Faulkner, senior vice president of consumer banking for Charlotte, N.C.-based Bank of America. "They're doing this unknowingly, because they aren't aware that they are about to overdraft."

Since the bank doesn't have the ability to notify the customer when they're at the register and give them the chance to agree to a fee, it will simply reject such transactions.

Consumers have demonstrated a willingness to pay overdrafts for covering the mortgage and the car payment, said Greg McBride, who follows the banking industry for Bankrate.com. "But not if it's things like covering a latte and a scone."

The bank's new policy will kick in on June 19 for new accounts, and in early August for existing accounts. It will replace the bank's current terms, which allow overdrafts to go through but only charge a fee if the deficit is greater than $10.

Bank of America likely won't be the last to make the change. That's because while the new rules will save consumers from surprising dings on their accounts, they will also cut deeply into the more than $1.77 billion annual revenue overdraft fees generate for the banking industry.

Faulkner would not estimate how much such fees pulled in for Bank of America in the past.

The Federal Deposit Insurance Corp. estimates about 41 percent of that total is from point-of-sale debit transactions. About 8 percent was from ATM transactions. The rest were from bad checks and online bill payments, which are not addressed in the regulation.

What's more, 93 percent of overdraft fees are generated by just 14 percent of customers.

Because most of the fees were paid by what Robert Meara, a banking analyst with the consultant Celent, called "serial overdrafters," the rules may not save the average consumer much money. In fact, because banks will look to make up that lost revenue, it may actually cost most individuals more.

"What this may do really is produce the unintended consequence of creating the demise of free checking," said Meara. Banks jumped into free checking in the last decade because of competition, but at the same time started allowing overdrafts that generated huge sums. If they can't charge those fees, it's likely they won't offer the free products anymore either.

Or, he suggested, consumers might start seeing deals advertised where free checking kicks in after a certain number of transactions, or if a customer has several accounts linked together.

"I think banks will use this as an opportunity to be creative and differentiate themselves in ways that was really hard to do when everybody had a free checking account," Meara said. "There's a way this can be a win-win for everybody, but in the short term I think it's going to be challenging for banks to make up for that lost revenue."

Bank of Hawaii offering coupons free online

Bank of Hawaii offering coupons free online
HONOLULU – Bank of Hawaii says it's come up with a way to generate more business for its clients.

The bank has launched a free, online virtual coupon book that offers a wide range of deals in various categories, including automotive, clothing, dining, entertainment and travel. The coupons can be found at the bank's Online Marketplace.

The senior vice president of the bank's Internet Department, David Oyadomari, says the coupons come from bank clients, and they can be used by anyone who prints them out.

Oyadomari says with the current economic challenges, the bank wanted to use technology and the Internet to help its clients generate more business, while also providing the public a way to conveniently save money

Why the NE addicted to cough syrup

Why the NE gulps cough syrup

Guwahati/New Delhi/India: Cartons stuffed with cough syrups in buses and trucks enter Assam and other parts of the Northeast daily through the inter-state checkposts in Chagolia and Srirampur districts. A close look would reveal these are common brands like Phensedyl and Corex. Wondering whether the people here have a peculiar affliction to cold and cough?
Well, this is a different kind of fix. There’s increasing abuse of cough syrups by drug addicts in the Northeast and Bangladesh, where seemingly innocuous looking bottles are smuggled through Assam, Meghalaya and Tripura.
Phensedyl and Corex — these contain the highly addictive opium-based Codeine phosphate — are routinely used by youngsters and their easy availability has worsened the situation. According to local NGOs and doctors, parents are increasingly complaining about their kids’ addiction to pharmaceutical drugs like cough syrups, besides chemical substances like Dendrite and Erase X.
Last week, the police in Agartala seized 4,000 bottles of Phensedyl from the cargo base of a private airline in Agartala — and indication that peddlers are getting bold and using airlines for smuggling because the vigil on roads and waterways has increased.
According to Narcotics Control Bureau (NCB), while the exact volume of illegal trade in cough syrup in the Northeast isn’t known, police and BSF have, for the past year or so, been making recoveries worth over Rs 20 lakh per month. ‘‘The volume of business is increasing due to rise in drug abuse in the region,’’ said a top NCB official.
Arup Das, a counsellor with the rehabilitation centre Kripa Foundation, said, ‘‘Addicts between 8-20 years are coming with severe health problems like insomnia, memory loss, sleeplessness, and sensory and skin diseases due to prolonged use of Phensedyl, Corex and Spasmo Proxyvon — a tranquilliser.’’

Ask for a bottle of cough syrup and medical stores in Guwahati will deliver it without a prescription. Not just that, many brands of cough syrups are available even at paan shops, PCOs, CD parlours and stationary shops.

The manufacturers of these syrups, Piramal Healthcare and Pfizer, are aware of their misuse, and say they routinely take steps to prevent it. Says an exceutive with Piramal Healthcare (Phensedyl): ‘‘We conduct retail campaigns at frequent intervals, generally in a quarterly cycle, to ensure that the medicine is dispensed only when the prescription is produced by patients. Also, in specific zones like the Northeast, supplies are despatched only against orders. We are careful about monitoring the supplies.’’

HEALTHY - Red Beet and Tomato Soup Recipe

Red Beet and Tomato Soup Recipe

• 1 onion, finely chopped
• 1 red pepper, finely chopped
• 2 teaspoons extra virgin olive oil
• 1 teaspoon ground ginger
• 1/4 teaspoon honey
• 1 cup vegetable broth
• 14 ounces crushed tomatoes in puree
• 15 ounces canned beets
• kosher salt
• ground black pepper
Stir onion, pepper and oil together in large pot over low heat and cook until softened, about 3 minutes. Stir in salt, ginger, honey, broth and tomatoes. Drain the beet liquid into pot, chop beets and add into mixture.
Bring to a boil and lower heat to gentle simmer. Cook for 10 minutes. Add salt and pepper to taste.

Curried Carrot and Apple Soup Recipe

Curried Carrot and Apple Soup Recipe

• 1 pound carrots, peeled and thinly sliced
• 2 small parsnips, peeled and thinly sliced
• 1 onion, finely chopped
• 1 celery stalk, sliced
• 1 tablespoon olive oil
• 1 1/2 teaspoon curry powder
• 1 Granny Smith apple, peeled and chopped
• 1 thick strip orange peel
• 6 cups chicken broth
• kosher salt
• ground black pepper
Mix vegetables with oil in large pot over low heat. Cover and cook for 15 minutes, stirring often. Stir in curry powder, then season with salt and pepper. Add remaining ingredients.
Bring to a boil, then lower heat to a simmer. Cook covered for 20 minutes. Puree soup, then serve with your favorite garnish.

Baked Apple-Cinnamon French Toast Recipe

Baked Apple-Cinnamon French Toast Recipe

• 2 tablespoons butter
• 6 apples, peeled, cored and cut in 1/4-inch slices
• 1/2 cup dark brown sugar
• 1 1/4 teaspoons ground cinnamon
• 1/2 teaspoon ground nutmeg
• 6 slices thick Challah bread, toasted
• 8 large eggs
• 1/2 cup granulated sugar
• 3 1/2 cups milk
• 1 tablespoon vanilla extract
Heat butter in skillet over medium heat until it starts foaming. Add the apple and cook until tender (about 10 minutes). Take off the heat and stir in brown sugar, cinnamon and nutmeg.
Cut toast in half diagonally to make triangles. Arrange in overlapping fashion in a buttered 9x13-inch baking dish.
Beat the eggs in a bowl, then whisk in sugar, milk and vanilla. Pour over toast triangles and then spoon the apples over the top. Cover and refrigerate over night.

Super Bowl Cheese Steak Egg Rolls Recipe

• 1 lb. boneless sirloin steak, halved lengthwise and thinly sliced
• 1/2 cup thinly sliced mushrooms
• 1/2 cup thinly sliced onions
• 1/2 cup thinly sliced red bell peppers
• 1/4 cup marinade
• 1 cup mayonnaise
• 1/4 cup sour cream
• 1 package (16 oz) egg roll wrappers
• 1/2 pound thinly sliced American cheese
Brown steak over medium-high heat and drain. Add vegetables and cook until tender. Reduce heat to low. Stir in marinade and cook, stirring frequently until thickened. Remove steak mixture from skillet and set aside.
Combine mayonnaise, sour cream and 3 tablespoons marinade; reserve.
Arrange egg roll wrappers with corners facing. Top with 1 slice cheese, then 2 tablespoons steak mixture. Brush edges of wrapper with water. Fold bottom corn up over filling, then fold in sides. Roll tightly and set aside. Repeat with remaining egg rolls.
Preheat oven to 450F degrees. Spray 2 baking sheets with nonstick spray. Arrange egg rolls seam-side down on sheets, then spray egg rolls with nonstick spray. Bake, turning once, for 16 minutes or until golden. Serve with reserved sauce.