Struggling with overdraft fees? How much do they cost? What’s the number of fees your bank could make you incur in one day? You will find here a list of America’s top banks with all the answers you need.
Overdraft fee definition
An overdraft is like getting an automatic loan from the bank when your checking account balance dips below zero. Overdrafting allows you to make a payment or purchase even if you are out of money. To really understand what does overdrawn mean and try to cure the problem from its source, there are a few details you should be aware of .
An overdraft fee is the fee incurred when you overdraft. Banks charge interest and/ or fees on the money you borrow (the money used beyond what you have in your account). A standard fee is $35. Every bank has different fee structures.
What is overdraft protection
Overdraft protection will give your bank permission to cover a payment if you run out of money in your checking account. For example, if you use your debit card for a purchase, but you don’t have money in your account, the bank will honor your purchase rather than declining your card. They expect you to pay them back, and often you will to pay a fee.
These overdraft plans have limits, usually based on the amount of coverage you have signed up for with the bank. If you constantly overspend, your bank may choose to stop overdraft protection for your account altogether.
How to overdraft your bank account on purpose
Though not ideal, sometimes you might need to overdraft your bank account on purpose. If you need groceries, or to pay a bill, and your checking account is out, you might just need to bite the bullet and incur an overdraft fee. If you are signed up for overdraft protection with your bank, you simply need to make a purchase as usual and you will automatically overdraft your account.
Account transfer fee
Some banks let you link your savings to your checking account to your checking account. So that if you overdraft your checking account, money will automatically be drawn from your savings to cover the purchase. This is a cheaper alternative to bank overdraft fees, but banks still charge, usually $10, for the service.
Overdraft fees and limit
Bank: Bank of America
Overdraft fee: $35
Limit # fee/day: 6
Total cost per day: $210
Account transfer: Yes
Bank: Bank of the West
Overdraft fee: $35
Limit # fee/day: 6
Total cost per day: $210
Account transfer: Yes
Bank: BB&T Bank
Overdraft fee: $35
Limit # fee/day: Varies
Total cost per day: Varies
Account transfer: Yes
Bank: BMO Harris Bank
Overdraft fee: $35
Limit # fee/day: 4
Total cost per day: $140
Account transfer: Yes
Bank: Chartway Federal Credit Union
Overdraft fee: $35
Limit # fee/day: Unlimited
Total cost per day: Unlimited
Account transfer: Yes
Bank: Chase Bank
Overdraft fee: $34
Limit # fee/day: 3
Total cost per day: $102
Account transfer: Yes
Bank: Citi Bank
Overdraft fee: $34
Limit # fee/day: 4
Total cost per day: $136
Account transfer: Yes
Bank: Connexus Credit Union
Overdraft fee: $29.95
Limit # fee/day: –
Total cost per day: $300
Account transfer: Yes
Bank: Fifth Third Bank
Overdraft fee: $37
Limit # fee/day: 5
Total cost per day: $185
Account transfer: Yes
Bank: First National Bank
Overdraft fee: $28
Limit # fee/day: 4
Total cost per day: $112
Account transfer: Yes
Bank: HSBC
Overdraft fee: $10
Limit # fee/day: 1
Total cost per day: $10
Account transfer: No
Bank: KeyBank
Overdraft fee: $39
Limit # fee/day: 4
Total cost per day: $156
Account transfer: Yes
Bank: M&T Bank
Overdraft fee: $38.5
Limit # fee/day: 5
Total cost per day: $192.5
Account transfer: Yes
Bank: Navy Federal CU
Overdraft fee: $20
Limit # fee/day: 3
Total cost per day: $60
Account transfer: Yes
Bank: PenFed Credit Union
Overdraft fee: $30
Limit # fee/day: Unlimited
Total cost per day: Unlimited
Account transfer: Yes
Bank: PNC Bank
Overdraft fee: $36
Limit # fee/day: 4
Total cost per day: $144
Account transfer: Yes
Bank: Regions Bank
Overdraft fee: $36
Limit # fee/day: 6
Total cost per day: $216
Account transfer: Yes
Bank: SunTrust Bank
Overdraft fee: $36
Limit # fee/day: 6
Total cost per day: $216
Account transfer: Yes
Bank: TD Bank
Overdraft fee: $35
Limit # fee/day: 5
Total cost per day: $175
Account transfer: Yes
Bank: U.S. Bank
Overdraft fee: $36
Limit # fee/day: 4
Total cost per day: $144
Account transfer: Yes
Bank: Wells Fargo
Overdraft fee: $35
Limit # fee/day: 4
Total cost per day: $140
Account transfer: Yes
Banks and financial apps that don’t charge overdraft fees
If you feel that you are highly likely to overdraft often at your bank, you should consider switching to banks with no overdraft fees. In the past decade, a bunch of online and friendly banks have popped up and received very positive feedback from their clients. Just to mention a few, you will find Simple and Chime. Not charging overdraft fees also means that you won’t get that extra money when you need it. The store will simply decline your debit card when you try to purchase something but you don’t have enough funds.
(Chime is a financial technology company, not a bank. Banking services provided by, and debit card issued by, The Bancorp Bank or Stride Bank, N.A.; Members FDIC.)
If you do want to find a bank that will offer you a line a credit with cheaper overdraft fees, this is possible at Capital One 360, Schaw Bank, Discover and EverBank.
