Bank Announces 24-Hour Grace Period on Account Overdrafts

One bank is giving customers a get-out-of-overdraft-free card, if they catch and cover the overdrawn funds within 24 hours. In what the bank describes as a "response to significant shifts in consumer attitudes and behavior as a result of the recent U.S. economic downturn", Huntington Bancshares Inc. HBAN today announced plans to introduce its new 24-Hour Grace™ account feature. This service gives Huntington customers additional time during the next business day to cover overdrafts to their consumer bank accounts, without being hit with any spiraling penalty fees. "Our own customers are saving more and being more careful to avoid overdrafts," said Huntington CEO Steve Steinour. The trend among Huntington customers reflects an increased savings rate across the country, which has more than doubled from 2.4 percent of disposable income in January 2008 to 5.9 percent in July 2010, according to the U.S. Department of Commerce: Bureau of Economic Analysis. Read the rest here.