Capital One Becomes Largest Bank Yet to Ditch Overdraft Fees

Capital One Financial Corp. will eliminate overdraft and non-sufficient fund fees for consumer-banking customers starting next year, joining a growing number of U.S. banks to ditch the practice.

Most customers will still be allowed to spend more than they have in their accounts, but that service won’t come with a fee, Chief Executive Officer Richard Fairbank said in a memo to staff on Wednesday. Customers will have to opt into the service and must show a pattern of steady deposits to access it.

“We will look at customers’ behavior to make sure they don’t overdraft frequently,” Fairbank said in the ...