American banking giant Wells Fargo has launched a new, low-cost, checkless bank account that comes without an overdraft fee.

Dubbed ‘Clear Access Banking’, the new account is available both online and in branches.

The launch of the Clear Access Banking account is part of the bank’s initiative to make banking easy to understand, convenient, and transparent.

The checkless account restricts customers from spending more than the balance available, without charging them a non-sufficient funds fee.

The account has been designed to target consumers such as young adults.

Wells Fargo head of deposit products group for consumer and small business banking Ed Kadletz said: “Our new Clear Access Banking account demonstrates our commitment to provide a simplified banking experience.

“It gives customers the comfort of having one account with a low monthly fee for money management, payments, and access to all digital banking experiences and services.”

The Clear Access Banking account comes with a flat monthly fee of $5, which is waived for account holders aged between 13 and 24 years.

The account gives customers access to the bank’s app and online banking tools, alerts, access to Zelle, debit card with zero liability cover, 13,000 ATMs, and full-service 24-hour phone banking support.

Wells Fargo originally planned to launch the Clear Access Banking account next year.

The bank said it will continue to simplify banking products for customers through 2021, with a scheduled rollout of its deposit product improvements.

Kadletz added: “Our work to simplify our bank accounts is driven by listening to our customers and understanding their needs

“The fast pace of the improvements we are making is evident in our rollout of Clear Access Banking, well ahead of our original target date of early next year.”