Many banks offer overdraft protection including ODP transfer to checking, which is usually somewhat cheaper than traditional overdraft coverage. In this article, find out all about overdraft protection, how ODP transfers work and important points to consider.

ODP meaning in bank

So, what does it mean to have overdraft protection? Well, it’s a service you can set up with your bank to authorize them to cover payments if you don’t have enough cash in your checking account. Fees apply, although they vary depending on the type of overdraft protection product you have.

Traditional overdraft coverage involves your bank covering payments and charging you a standard fee of around $35 for each overdraft. You can be charged more than once in a day, so these fees can swiftly rack up.

An overdraft line of credit is another type of overdraft protection; it’s like a loan attached to your bank account. Rather than being charged a fee for each overdrawn item, you’ll be charged interest on the amount you borrow instead, until you pay it back.

ODP transfers

This type of overdraft protection involves the transference of funds from another one of your accounts, e.g. a savings account, to cover your overdrafts. Flat transfer fees usually apply, but these are generally cheaper, at up to $12 per transfer, when compared with traditional overdraft coverage.

There are some things to note about overdraft protection transfers, as follows:

1. Your linked account should contain adequate funds

For ODP transfers to take place when you need to cover a payment, you should make sure your linked account has enough money in it. If not, you may still overdraw your checking account, and your bank may charge you their standard overdraft coverage fee.

2. Overdrafts are paid at your bank’s discretion

Each bank will have its own overdraft practices, and they may not be obliged to pay your overdrafts all the time. If you overdraw regularly, your bank may determine that you’re not managing your money as well as they’d like and they may even remove your overdraft protection entirely.

3. Your savings could slowly disappear

Some banks, such as U.S. Bank, transfer funds in multiples of $50, which means that if you overdraw by $60, $100 would be transferred from your linked account. This may not be a problem for you, but some of your hard-earned savings could be swallowed up by your checking account from time to time.

More on Can you overdraft a savings account

Chase overdraft limit

If you bank with Chase, they will allow you to link a Chase savings account to your checking account for overdraft protection. They only transfer the exact amount needed to cover transfers.

Each time you transfer from a Chase savings account, a $5 savings withdrawal fee will apply. There is a limit of six savings account transfers per monthly statement period. However, if you make a transfer at an ATM or in person at a branch, this limit doesn’t apply.

If you go over the limit, Chase may convert your savings account to a Chase Total Checking account. Read more about overdraft protection with Chase here.

Chase overdraft forgiveness

By opting into the standard overdraft coverage with Chase, you’ll get charged a fee of $34 whether an item gets paid or returned (and you could be dealt a maximum of three fees per day).

However, Chase waives overdraft fees for items that are less than $5. They also won’t enforce charges if you can bring your account back to a positive balance by the end of the same business day.


Overdraft protection can be helpful to get you out of a financial scrape or two if you’ve underestimated how much money you have in your bank when a payment is due to be taken. ODP transfer to checking is often a popular route to go down because it’s typically a cheaper option.

No matter which type of overdraft protection you choose, it’s never a great idea to rely on overdrafting too frequently, as your bank won’t take kindly to that. And let’s face it: it’s better to be fully in control of your finances, and if possible, have excess funds in your checking account!

If you think overdraft protection is right for you, you’ll have to opt-in or request it with your bank, as it’s not something they’ll automatically add to your account. You can usually do this by giving your bank a quick call or adding the service online.

Not all banks offer overdraft protection, however. If yours falls into this category, there are some handy apps (such as Dave or Earnin) you can use to help you budget more efficiently, and they will alert you if you’re about to go overdrawn.

Disclaimer: all facts and figures presented here are correct at the time of publishing.