Editor’s Note: Overdraft Apps provides detailed product reviews and recommendations based upon extensive research and our own hands-on testing. We may earn a referral fee when you sign up for or purchase products mentioned in this article.
Mitchel holds a Bachelors of Business Administration in Finance from The Goizeta School of Business at Emory University and a Masters of Business Administration from The Haas School of Business at The University of California.
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Updated August 2026.
How much is Academy Bank’s overdraft fee? Academy Bank charges up to $20 per item it pays into overdraft, and also charges up to $20 per item it returns unpaid. There is no overdraft fee when the paid transaction is $5 or less. Academy Bank caps the combined total of overdraft and returned-item fees at $100 a day.
| Academy Bank overdraft, at a glance | What it means |
|---|---|
| Overdraft fee (paid item) | Up to $20 per item |
| Returned-item (NSF) fee | Up to $20 per item, charged instead of, not in addition to, the overdraft fee |
| No-fee cushion | No overdraft fee when the paid transaction is $5 or less (does not waive returned-item fees) |
| Overdraft Protection Transfer | Free; transfers from a linked account in $100 increments |
| Daily fee cap | Combined overdraft and returned-item fees capped at $100 per business day |
| Grace period | None stated in current disclosures |
| ATM and debit card overdrafts | Off unless you opt in |
| Denied out-of-network ATM fee | $0.50, unless the ATM is on the MoneyPass network |
Fees verified August 21, 2026 from Academy Bank’s Overdrafts & Alternatives help center page and its overdraft coverage disclosure.
How much does an Academy Bank overdraft cost?
Academy Bank charges up to $20 each time it pays a transaction that overdraws your account. Separately, it charges up to $20 for each item it decides not to pay and instead returns. Academy Bank never charges both fees for the same item, one item is either paid with a fee or returned with a fee, not both. Academy Bank does not charge the paid-item overdraft fee when that transaction amount is $5 or less. That $5 waiver applies to paid overdrafts only, not to returned items. Across everything the account triggers in a single business day, Academy Bank will not charge more than $100 total in overdraft and returned-item fees combined.
Is there a grace period?
Academy Bank’s disclosures describe how the fee applies but do not state a separate grace period that lets you fix a negative balance after the fact to avoid the charge. Not stated in current disclosures: any window, similar to Huntington’s 24-Hour Grace or Regions’ Overdraft Grace, for reversing an Academy Bank overdraft fee after it posts.
Which transactions can overdraw your account?
By default, Academy Bank declines ATM withdrawals and everyday debit card transactions that would overdraw your account, at no charge. Coverage for those transaction types only applies if you opt in, which you can do by mail, fax, email, phone, branch visit, or through Digital Banking. Checks, ACH direct debits, and automatic bill payments can be authorized and paid into overdraft, or returned, at Academy Bank’s discretion, regardless of whether you have opted in to anything.
| Transaction type | What happens if funds are short |
|---|---|
| ATM withdrawal (not opted in) | Declined at the machine, no cash dispensed, no fee |
| Everyday debit card purchase (not opted in) | Declined at checkout, no fee |
| ATM or debit purchase (opted in) | May be authorized and paid into overdraft, up to $20 fee may apply |
| Checks, ACH, automatic bill payments (paid) | Paid into overdraft, up to $20 fee applies |
| Checks, ACH, automatic bill payments (returned) | Returned unpaid, up to $20 fee applies for the return itself |
Unlike some banks, Academy Bank’s return is not free, so a declined debit card purchase (no fee) is a genuinely different outcome from a returned check or bill payment (fee applies either way it goes). The company on the other end of a returned payment can still add its own late fee, a cost Academy Bank does not control, so the math is worth doing before assuming a decline or a return is automatically the cheaper path here.
Overdraft protection alternatives
Academy Bank offers an Overdraft Protection Transfer that links a savings or other account to automatically cover a shortfall. Transfers are free, no fee no matter how many items triggered the shortfall, and Academy Bank moves funds in $100 increments when available. Only one account can be linked per checking account for this purpose. If the linked account cannot cover the full transaction, Academy Bank transfers whatever is available and can still charge overdraft or returned-item fees on any remaining amount. Academy Bank also offers a separate Safe Spending Account, a checking product built to avoid overdraft fees entirely, with its own $5 monthly service charge and $25 opening deposit.
How to avoid Academy Bank overdraft fees
- Keep paid overdrafts of $5 or less in mind. That waiver covers the paid-item fee only, not returned-item fees.
- Track your balance closely. Academy Bank does not offer a grace period to reverse a fee after the fact.
- Link a backup account for Overdraft Protection Transfer. The transfer itself is free, but a partial transfer can still leave you owing a fee on what is left uncovered.
- Skip opting in to ATM and debit overdraft if you would rather have a purchase declined than risk a fee.
- Consider a Safe Spending Account if avoiding overdraft fees entirely matters more than paper checks or other standard checking features.
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How Academy Bank compares to the average US bank
Bankrate’s 2025 Checking Account and ATM Fee Study puts the average bank overdraft fee at $26.77. Academy Bank’s up-to-$20 overdraft fee runs $6.77, or about 25%, below that average. Academy Bank’s counterweight is smaller than many banks offer: it also charges up to $20 for a returned item, which most large banks in this study do not, and it does not publish a grace period.
| Bank (typical account) | Overdraft fee | No-fee cushion |
|---|---|---|
| Academy Bank (personal checking) | Up to $20, $100/day combined cap | Paid transactions $5 or less only |
| Average US bank (Bankrate 2025) | $26.77 | 66% of accounts give some leeway |
| Huntington (Asterisk-Free) | $15, up to 3/day | $50 Safety Zone + 24-Hour Grace |
| KeyBank (Key Smart Checking) | $20, up to 3/day | Key Coverage Zone, $20 threshold |
Source: Bankrate 2025 Checking Account and ATM Fee Study, published September 10, 2025, https://www.bankrate.com/press-releases/atm-fees-hit-record-high-for-third-consecutive-year/
Compare cash advance apps that can cover a shortfall. If you keep landing in overdraft, an app that fronts you a small amount until payday may cost less than repeat bank fees.
Academy Bank overdraft FAQ
How much is Academy Bank’s overdraft fee?
Up to $20 per paid item. Academy Bank also charges up to $20 for each item it returns unpaid instead. There is no overdraft fee when the paid transaction is $5 or less. That waiver does not apply to returned items. Combined fees cap at $100 a day.
Does Academy Bank charge a returned-item or NSF fee?
Yes, up to $20 per returned item, unlike many banks that eliminated this fee. Academy Bank does not charge both an overdraft fee and a returned-item fee on the same transaction.
Does Academy Bank offer a grace period?
Not stated in current disclosures. Academy Bank’s materials do not describe a window for reversing a fee after it has posted.
Can Academy Bank overdraft my debit card or ATM withdrawal?
Only if you opt in. By default those transactions are declined at no charge.
What is Academy Bank’s Safe Spending Account?
A checking account built to avoid overdraft fees entirely, with a $5 monthly service charge and a $25 opening deposit, and no paper checks included.
Is there a fee for Academy Bank’s Overdraft Protection Transfer?
No. Academy Bank states that overdraft protection transfers are free, regardless of how many items caused the shortfall. Transfers move in $100 increments when funds are available. If the linked account cannot cover the full amount, overdraft or returned-item fees can still apply to what is left uncovered.
Mitchel holds a Bachelors of Business Administration in Finance from The Goizeta School of Business at Emory University and a Masters of Business Administration from The Haas School of Business at The University of California.
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