First Interstate Bank Transforms Overdraft Practices to Protect Consumers

Non-sufficient funds and overdraft fees eliminated or reduced to help clients meet short-term cash needs

First Interstate BancSystem Inc., parent company of First Interstate Bank, announced significant changes to its consumer overdraft practices, reducing fees and giving clients flexible options to meet their personal financial needs. This includes the elimination of non-sufficient funds fees and a reduction of overdraft fees.

“At First Interstate Bank, people are — and have always been — our number-one priority”

“At First Interstate Bank, people are — and have always been — our number-one priority,” said Kevin Riley, President and CEO of FIBK. “We know how easy it can be to make a withdrawal or purchase, only to find out too late there’s not enough in an account to cover the transaction. The enhancements to our overdraft processes will give our clients more financial flexibility, and we hope it inspires other banking organizations to follow our example.”

Latest Fintech News: Eaglebrook Advisors Raises $20 Million in Series A Funding Led by Castle Island Ventures and Brewer Lane Ventures

As of April 1, First Interstate will launch the following changes:

• Elimination of non-sufficient fund charges
• A 67% reduction in overdraft fees from $30 to $10
• Limit the maximum number of daily overdraft charges to 4 per day
• Provide a grace amount of $50 before any fees are assessed
• No overdraft charges for any purchase under $5
• The elimination of continuous overdraft and transfer fees
• Free transfers from savings to checking to cover overdrafts

First Interstate also offers a robust overdraft line of credit service which will remain in place to ensure clients have an additional layer of protection. In addition, this spring First Interstate will launch a checkless account that has no ability to be overdrawn and includes debit and online banking access.

Latest Fintech News: Fintechs Launching Visions Into Products Faster with Praxent Design and Development

“Our clients need a banking partner that provides support when they need it most,” said Marcy Mutch, FIBK’s CFO. “As an advocate for the clients we serve, we’re excited to live our values by reducing and removing these charges. This will amplify the positive impact First Interstate has on the places we call home.”

Giving back has been at the heart of First Interstate’s values since its inception more than 50 years ago. Each year, First Interstate donates 2% of pre-tax earnings to the communities it serves. These funds are put into action to mitigate poverty, improve workforce development, boost early childhood education, and more. First Interstate also supports its communities by offering additional philanthropic support through donations, sponsorships, and volunteerism.