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Starting Oct. 19, the Charlotte-based bank said Tuesday, it will no longer charge overdraft fees if a customer's account is overdrawn by less than $10 per day. The bank now charges a $10 fee if an account was overdrawn by less than $5 per day.

In addition, the bank said it will not charge overdraft fees on more than four instances per day. In the past, the cap was 10 per day. The fee stays at $35 per overdraft.

The bank also said that customers can visit a branch or call the bank to opt out of overdraft protection, meaning payments won't be made on their behalf if they don't have enough money in their accounts. The bank also plans more changes next year.

In a down economy, overdraft fees have become a particular sore point lately because customers can rack up big charges if they withdraw money at an ATM, write a check or use a debit card and don't have enough money in their account. With the proliferation of debit cards, in particular, they can rack up multiple fees in a short span of time.

The announcement comes a little more than a month after Brian Moynihan took charge of the bank's consumer banking unit, following a management shakeup.

In an interview Tuesday, Moynihan said changes were already in the works but he pressed for them to be completed quickly.

"The economy kept getting tougher and tougher," Moynihan said. "Customers continued to be stretched more and more. We were watching how customers were being affected."

Moynihan said the bank was driven by customer need, not legislative pressure. A bill in the U.S. House would require banks to inform customers that an ATM withdrawal or debit payment is about to put them into the negative. Senate Banking Committee Chairman Chris Dodd, D-Conn., has said he is drawing up legislation.

Overdraft fees have been a major source of income for banks, especially at a time when they're struggling with rising loan losses. Bank of America's deposits segment, which includes checking accounts and other services, collected $3.3 billion from all service charges in the first half of this year.