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 September 2026.
How much is BMO’s overdraft fee? It depends on the account. Smart Advantage Checking charges $20 per item (up to 3 per business day) after a February 2026 increase, with a $20 end-of-day cushion. Smart Money Checking lists $0 overdraft fees. BMO does not charge a separate NSF fee when it returns an item unpaid.
| Item | Smart Advantage Checking | Smart Money Checking |
|---|---|---|
| Overdraft fee | $20 per item, max 3 per business day | $0 |
| No-fee cushion | No fee if overdrawn $20 or less at close of business the day of the item or the next business day | Not needed. No overdraft fee |
| Small-item exception | No fee on items $5 or less | N/A |
| Returned-item (NSF) fee | $0 when BMO returns an item unpaid | $0 |
| ATM / everyday debit overdraft | Opt-in required. Declined free if you do not opt in | Program not available on this account |
| Monthly fee | $0 with paperless statements | $5, or $0 if under age 25 |
Fees verified September 2, 2026 from BMO’s Smart Advantage Checking disclosure, Smart Money Checking page, and overdraft services page.
Smart Advantage Checking: $20 overdraft fee
On Smart Advantage Checking, BMO charges $20 for each item it pays when your account is overdrawn by more than $20 after all items post. That fee rose from $15 on February 9, 2026. BMO will charge no more than three overdraft fees per business day. There is no fee on items of $5 or less, and no overdraft fee triggered only by BMO’s own bank fees.
The $20 cushion and next-day check
BMO checks your balance twice before charging the fee. If your account is overdrawn by $20 or less at the close of business on the day the item is presented, or at the close of the next business day, BMO does not charge the fee. A deposit that brings you inside that cushion by the second checkpoint can still save the fee.
Smart Money Checking: $0 overdraft fees
BMO markets Smart Money Checking as a Bank On certified account with $0 overdraft fees. The monthly maintenance fee is $5, or $0 if you are under age 25. The Overdraft Program for ATM and Everyday Debit Card Transactions is not available on Smart Money. BMO also says new Overdraft Protection Services cannot be added to this account after June 12, 2021.
Does BMO charge a returned-item (NSF) fee?
No. When BMO returns a transaction unpaid because your account does not have enough available funds, it does not charge a fee for that return.
ATM and debit card overdrafts
On Smart Advantage, ATM withdrawals and everyday debit card purchases are declined at no charge unless you opt in to the Overdraft Program for ATM and Everyday Debit Card Transactions. Checks, ACH payments, and recurring debit charges can still be paid into overdraft at BMO’s discretion, with the $20 fee rules above. On Smart Money, that ATM and everyday debit overdraft program is not offered.
Overdraft protection transfers
On accounts that allow it, BMO offers Overdraft Funding from a linked BMO savings, money market, or checking account, and an Overdraft Protection Line of Credit that advances funds up to your approved limit with interest. You must speak with a BMO banker to enroll. Smart Money has limits on adding new protection services after June 12, 2021.
How to avoid BMO overdraft fees
- Choose Smart Money if you want $0 overdraft fees and can handle the $5 monthly fee (or qualify for the under-25 waiver).
- On Smart Advantage, stay inside the $20 cushion or deposit by the next business day’s close.
- Skip ATM and debit opt-in if you would rather have a purchase declined than risk a $20 fee.
- Set low-balance alerts in BMO Digital Banking.
- Ask a banker about Overdraft Funding if your account can still add it.
Short before payday? If the alternative is stacking bank fees, a small advance can be cheaper when you qualify and repay on time.
See how to borrow $50 instantly, or compare every option side by side below.
How BMO compares to other banks
Bankrate’s 2025 Checking Account and ATM Fee Study puts the average bank overdraft fee at $26.77. Smart Advantage’s $20 fee sits below that average. Smart Money sits at $0.
| Bank (typical account) | Overdraft fee | No-fee cushion |
|---|---|---|
| BMO Smart Advantage | $20, up to 3/day | $20, checked twice |
| BMO Smart Money | $0 | No OD fee |
| Average US bank (Bankrate 2025) | $26.77 | 66% give some leeway |
| Chase (Total Checking) | $34, up to 3/day | $50 buffer + Overdraft Assist |
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.
Top cash advance apps right now:
| App | Score | Max | |
|---|---|---|---|
 Tilt |
9.5 | Up to $400 | Get Tilt |
 MoneyLion |
9.1 | Up to $500 | Get MoneyLion |
 Brigit |
9.1 | Up to $500 | Get Brigit |
 Chime |
9.0 | Up to $500 | Get Chime |
 Grant |
8.9 | Up to $500 | Get Grant |
Need more than a few hundred dollars?
- Bigger loans, not tiny advances. Cash advance apps top out fast — PockBox helps you search personal loan offers that often start above $500.
- Any credit score welcome. Compare options from lenders that work with excellent, fair, and poor credit (approval and terms always depend on the lender).
- Free to shop around. Checking rates does not lock you into a loan — compare side by side, then decide.
BMO overdraft FAQ
How much is BMO’s overdraft fee?
Smart Advantage Checking charges $20 per item, up to 3 per business day, as of February 9, 2026. Smart Money Checking lists $0 overdraft fees.
What is BMO Smart Money Checking?
It is BMO’s Bank On certified checking account with a $5 monthly fee ($0 under age 25) and $0 overdraft fees. The ATM and everyday debit overdraft opt-in program is not available on this account.
What is BMO’s $20 overdraft cushion?
On Smart Advantage, BMO checks your balance at the close of business the day an item posts and again the next business day. If either check shows you overdrawn by $20 or less, BMO does not charge the fee.
Does BMO charge a returned-item or NSF fee?
No. BMO does not charge a fee when it returns a transaction unpaid for insufficient funds.
Can BMO overdraft my debit card or ATM withdrawal?
On Smart Advantage, only if you opt in. Otherwise those transactions decline at no charge. On Smart Money, the ATM and everyday debit overdraft program is not available.
Is there a daily cap on BMO overdraft fees?
Yes on Smart Advantage. BMO’s disclosure caps overdraft fees at three per business day.
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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