Cleveland-based KeyCorp is set to launch a new checking account Key Coverage Checking to offer a variety of solutions based on a customer's banking needs, including flexible overdraft fee options and ID Theft protection, on August 15, 2010.

According to the KeyBank, the Key Coverage Checking is a personal checking account and a non-interest bearing checking account that includes the waiver of the first two overdraft or return item fees assessed each month.

In addition, no overdraft fee will be assessed if an account is overdrawn by $10 or less, based on the end-of-day balance. A reduced overdraft fee of $18 is assessed if the account has a negative end-of-day balance of $10.01 to $100. If the account remains overdrawn for five or more consecutive business days, a recurring overdraft fee is charged.

KeyCorp added that Intersections, a provider of consumer and corporate identity risk management services, will be providing ITAC Sentinel Identity Theft protection service, which includes services such as access to credit reports, credit scores, $2,500 Identity Theft insurance, victim assistance and card theft protection.

Beth Mooney, vice chairman of KeyCorp, said: “Key Coverage Checking provides our clients who prefer it the option of a checking account with significantly-reduced overdraft related costs, with the added benefit of ID Theft protection. At KeyBank, we want to offer choices, and our client research indicates that a segment of our clients is likely to prefer these features that help protect them against unwanted fees and fraudulent activity.

“The regulation changes regarding overdraft fees, known as Regulation E or the Electronic Fund Transfer Act, have already, or will go into effect, later this summer. Key’s approach recognizes that customers will need to make some decisions, and we aim to offer options that will give them a choice.”