Question-and-Answer Session
Operator
(Operator Instructions). Your first question comes from Jon Arfstrom - RBC Capital Markets.
Jon Arfstrom - RBC Capital Markets
Thanks for some of that detail on the new account, Bill, but I was just wondering if you could maybe give us a little more framework in terms of how the account maintenance fee might work.
William A. Cooper
Well, we haven't really worked out the details of it but it'd be typical of the way it used to be 20, 25 years ago. If your account balance goes below a certain level, say $100, then there will be a monthly maintenance fee. There may be two, there may be a bigger fee below $100 and a smaller fee, say below $500 or something like that.
The negative balance fee would be a daily fee until the account goes positive. There would be no fee if it went negative, say below a $5 number, but if you take your account negative $200, there will be a daily fee charged until the customer brings that account to positive.
We will notice the customer on the day that it goes negative, either through email or U.S. mail or through online banking, as promptly as possible that the account has gone negative and when the customer brings the account positive that fee will cease.
One important thing it does and what regulation is directing at is the train wreck that people get into with their accounts where somebody inadvertently does a $25 or say writes five checks for $10 each and is overdraft $50, and since that's five items they get charged for each item, which is very expensive, as compared to somebody who wrote one check for $50 and only gets hit one item. And that tends to happen relatively randomly and it gets driven by what order you post things in and people are very confused about how it all works.
This program, this product will be very simple. If a customer goes negative, they know exactly what it will cost them and how much it will cost them until they bring the account positive. And in addition to that, you won't be charged for an item that didn't result in risk to the bank in connection with returning items and so forth.
So basically what we will have is account maintenance fees. Some of the fees will be driven by the account going negative and some of them will be driven by the account going down to a relatively low balance, and that's pretty much the way the product structure works. Anybody, Earl or Neil got anything to add to that?
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