Wells Fargo to offer a bank account without overdraft fees. But there’s a catch.

Wells Fargo will offer a bank account that has no overdraft or insufficient funds fees, as well a bank account that caps overdraft fees to one a month, the San Francisco-based bank said Tuesday.

The accounts are expected to be available in early 2021.

While not a full-scale elimination of overdraft fees like some consumer advocates have called for, the move gives Wells Fargo customers an overdraft-free option.

But there’s a catch. You can’t use checks with the no overdraft-fee accounts. If a customer wants limits on overdraft fees and access to checks, they’ll have to get the account with limited fees.

“We know many consumers are seeking low-cost bank accounts that help them avoid overspending and keep to a budget, as well as access to all our mobile, online, ATM, branch and phone banking services,” said Mary Mack, Wells’ Charlotte-based CEO of Consumer and Small Business Banking, in a statement.

“These new offerings will help us satisfy the financial needs of more customers and further expand access to mainstream banking services.”

The check-less, overdraft-free account is designed for young people opening their first account, and those on a budget, the bank said. The account without checks will cost $5 per month, $60 a year.

The account with checks and limited overdraft fees will cost $10 a month, or $120 per year.

Usually, a Wells Fargo overdraft fee is $35, with a cap of three a day. Last year, the bank made $1.97 billion on overdraft fees, according to a securities filing.

Wells Fargo has about 27,000 workers in Charlotte, the most of any city the bank’s in, in part due to its 2008 acquisition of Wachovia.

This story was originally published March 3, 2020 at 12:35 PM.