KeyBank Overdraft Limit, Fees and Protection

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UPDATE: KeyBank has announced significant changes to its overdraft fees, that were scheduled to take effect towards the end of 2022:

  • Elimination of non-sufficient fund fees
  • No overdraft fees if you account is overdrawn by less than $20
  • Overdraft fees reduced from $33 to $20
  • Daily overdraft fee cap reduced from five per day to three to day
  • Provision of $0 Overdraft Protection for all linked accounts.
KeyBank FeesCost Maximum Overdrafts Per DayMaximum Daily Cost
Overdraft Fee$335$165
Insufficient Funds Fee$335$165
Linked Account Transfer Fee$10*7 per month$70
*if you link your savings account, the transfer fee is $0

Many people find themselves trying to buy something without enough cash in their account. If a charge is more than your account balance, you will be “overdrawing” your account, which can incur fees.

Rather than struggle with high overdraft fees and associated costs, you can take some steps to learn about your bank’s overdraft policy on their fees, limits, and protection.

In this easy guide, you’ll be able to find out what kinds of overdraft fees, limits, and protections are available at KeyBank. Go to:

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What We’ll Cover:

What Is KeyBank’s Overdraft Policy?

KeyBank offers overdraft services that allow someone to pay for a transaction when their current account balance is too low to cover it. Instead of the transaction being rejected, KeyBank’s overdraft service will cover the funds, leaving you to pay back the money with an additional fee for using the overdraft service.

KeyBank allows overdrafts on the following transactions at their discretion:

  • Check payment
  • Recurring debit card transactions (i.e., monthly subscriptions, household bills)
  • Electronic transfer

KeyBank allows opt-in overdrafts on the following transactions:

  • ATM transactions
  • Everyday debit card transactions (non-recurring)

KeyBank does consider account history with regard to overdraft fees, specifically the current month and the previous 11 months of transactions and monthly statements. KeyBank uses the account history to assess the overdraft fees applied to the account.

KeyBank’s overdraft limits are set at the bank’s discretion for transactions such as payments by check, electronic transfers, and recurring debit card transactions but overdraft services must be opted into for ATM transactions and non-recurring debit card transactions.

Learn more about KeyBank’s overdraft policy here 

KeyBank overdraft protection

WAIT! High overdraft fees aren't the only way KeyBank is costing you money.

With inflation overheating, you've probably heard that interest rates are climbing sharply. That means that for the first time in years, it's a great time to shop around for a high interest savings account.

KeyBank savings accounts currently pay just 0.01% APY1 as of 11/22/2022. That means that if you have $2,500 in a savings account, you'd earn just $0.25 after one year! Move those hard-earned savings to an FDIC-insured bank paying 3.50% APY and you'd earn $87.49 after one year, and some banks now pay even higher rates!

Don't let your hard-earned savings sit there doing next to nothing. Check out the rates that you can earn at other banks:

How Much Are KeyBank Overdraft Fees?

KeyBank charges a $33 overdraft fee per transaction.

KeyBank’s overdraft fees may be increased due to account history. For the first two overdraft charges that occur on the account, the fee will be $33. If another overdraft charge comes within 10 months, the fee will be increased to $38.50. If the account does not have another overdraft charge for 10+ months and then experiences an overdraft, the fee will have reset to $33 per transaction.

In addition, if an account remains negative for 5 consecutive business days, a “Recurring Overdraft Service Charge” of $28.50 will be applied to the account.

What Are KeyBank’s Overdraft Limit at an ATM?

KeyBank has a limit of 5 overdraft charges per day per account (with an overdraft fee of $33 per transaction, the daily max is $165). There is a limit of 20 overdraft charges per month per account (a monthly max for fees of $660).

If an account is negative for 5 consecutive business days, it will be charged a “Recurring Overdraft Service Charge” of $28.50, with no limit present in KeyBank’s policy.

To overdraft an account at an ATM, you must opt-in to KeyBank’s overdraft services. You can do this by:

  • Enrolling in overdraft services through KeyBank’s online banking system
  • Using the KeyBank mobile app to enroll in overdraft services
  • Visiting your local KeyBank branch and talking to an advisor

If you want to opt-out of KeyBank’s overdraft services later, you can use any of the steps listed above and instead un-enroll from the service.

ATM Banking KeyBank

Does KeyBank Charge NSF Fees?

Yes. NSF, or Non-Sufficient Fund, fees at KeyBank are very similar to overdraft service fees.

KeyBank NSF fees are $33 per transaction.

For example, you may have a utility like your water bill set up for automatic recurring payments. You may forget to move money to the account or card from which the water bill is paid. Instead of declining the transaction, KeyBank will cover the transaction through their overdraft service and then apply a $33 fee because you had non-sufficient funds for that transaction. The fee is for the overdraft service.

Can You Get a KeyBank Overdraft Fee Waived?

Tweet from KeyBank about refunding overdraft fees
Never hurts to ask if you can get your KeyBank overdraft fees refunded!

Getting an overdraft fee waived at a bank may seem out of the question for many. Because banks don’t make their policies on waiving fees very public, it can seem like it’s not even an option to many.

But like with most things, it never hurts to ask. In recent years, there has been a push for banks to try to be more understanding of their patrons. While waiving fees may have been inconceivable previously, many banks try to have a more open approach to such matters.

If you are either a long-time customer or someone with a solid account history (i.e., few overdrafts or NSF charges), it is reasonable that you may be one who could have an overdraft fee on your account waived. This isn’t the type of thing you might try many times though, as it’s less realistic to try to get multiple overdraft fees waived.

So here’s a possible scenario:

Customer (You): I am a longtime patron of KeyBank and wanted to know if there are any opportunities to have one-time overdraft fees waived?

KeyBank:  I saw your account history with us and noticed you only have one overdraft charge and a strong account history. I understand these fees can be less than ideal, so I’ll see if there’s anything I can do.

Make sure to remain as polite as possible with any advisor you speak to, no matter the potential outcome. After all, it will be a favor to you from your bank, so treat it like a favor you may ask of a friend or colleague.

You can contact KeyBank’s 24/7 customer service at 1-800-539-2966 or visit your local KeyBranch location and speak with an advisor.

KeyBank Overdraft Fee Waived

How to Avoid Overdraft Fees With KeyBank

You can take some steps to avoid overdraft fees and non-sufficient funds charges before they show up on your account.

Option #1: Set Up Alerts and Link Your Accounts

The best way to keep an eye on your bank account and watch out for changes in your balance is to set up banking and account alerts. Using the KeyBank mobile app or their online banking service, you can set it up to receive a text or e-mail alert any time your account goes below a certain balance (you can choose any amount that works for you).

In addition, you can link your accounts so that if a transaction takes more money than an account currently has, it can pull money from a savings account or credit card that you choose. This can help completely avoid accidental overdraft charges, such as when you forget to move money before making a purchase or for paying a recurring charge.

Option #2: Take Advantage of No-Fee Overdraft Apps

The overdraft services and protection options are beneficial, but it keeps you limited to the bank’s set policies and existing system. There are options available to you outside of your bank that can help avoid overdraft and non-sufficient fund fees.

Chime’s SpotMe service is a fee-free alternative to help people with their overdraft concerns. Enrolling in SpotMe is free and once your account is set up to receive a $200 direct deposit or more a month, you’re good to go with limits starting at $20 and going up to $200 – all with no overdraft fees. Here’s an example of how SpotMe can help you avoid sky-high overdraft fees:

You might be looking to get the latest video game you’ve been waiting for for months. The game costs $65, but your paycheck isn’t in yet and your account balance is $50. You don’t want to risk the game selling out, so you know you will buy it now. The $65 game becomes a $98 purchase with a regular overdraft service. With SpotMe, you don’t pay the usual fee that comes with an overdraft charge. As long as your paycheck comes in like normal, the negative amount will be balanced out by the next deposit. 

Chime SpotMe is great for a situation like this, but it’s not a way to try to get quick cash.

Sick of overdraft fees? Explore SpotMe here.

Option #3: Get Fast Cash With a Cash Advance App

Cash advance apps give you immediate access to the funds you need.

PockBox is a great option because users can borrow up to $2,500 (10x more than the amount typically offered by cash advance apps) and apply with bad credit with funds available by the next business day.

It’s not a long-term solution but it’s great for when you need money fast.


Final Thoughts and What to Do Next…

Overdrafts are usually either accidental or in response to an immediate need. KeyBank’s overdraft services can help in a pinch, but the additional fees ($33 per overdraft charge) can make maintaining your account balance difficult.

To avoid accidental overdrafts, make sure to set up account alerts and try to link a savings account or credit card to your checking account for those times when you don’t notice until it’s too late.

If you’re looking for no-fee options for typical non-sufficient funds and overdraft service situations, you can try:

  • SpotMe to avoid overdraft fees and cover cash shortages
  • PockBox to get a cash advance so you can cover immediate charges and avoid overdraft fees and late fees

Overdraft charges can be very frustrating, but with all the information here and the resources listed, you should be well-equipped to handle your account and avoid overdraft fees.

Mitchel Harad
  1. Chime SpotMe is an optional, no fee service that requires a single deposit of $200 or more in qualifying direct deposits to the Chime Checking Account each month and Visa debit card activation. All qualifying members will be allowed to overdraw their account up to $20 on debit card purchases and cash withdrawals initially, but may be later eligible for a higher limit of up to $200 or more based on member's Chime Account history, direct deposit frequency and amount, spending activity and other risk-based factors. Your limit will be displayed to you within the Chime mobile app. You will receive notice of any changes to your limit. Your limit may change at any time, at Chime's discretion. Although there are no overdraft fees, there may be out-of-network or third party fees associated with ATM transactions. SpotMe won't cover non-debit card transactions, including ACH transfers, Pay Anyone transfers, or Chime Checkbook transactions. See terms and conditions.
  2. Early access to direct deposit funds depends on the timing of the submission of the payment file from the payer. We generally make these funds available on the day the payment file is received, which may be up to 2 days earlier than the scheduled payment date.

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