Oxygen Bank Overdraft Limits, Fees and Protection

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It’s a cold winter’s night when you decide to run some errands. You buy a new coat, some nice blankets, and a hot chocolate from three different vendors. As you’re driving home you remember — your account was already in the negative! With most banks, this shopping trip could cost an additional $34 per transaction, adding up to $102 in overdraft fees! Luckily, Oxygen1 doesn’t charge any overdraft fees.

oxygen bank app on a phone

But first: Get a $100 bonus when you open an Oxygen Account!

You’re going to like Oxygen’s overdraft fees (hint: there aren’t any) and we’ll thoroughly cover that in just a moment. But before we do, how about a free $100 when you open an Oxygen account? It’s easy to qualify:

  1. Use this link to open a new Oxygen account
  2. Receive a direct deposit of at least $500 in your new account
  3. Make at least five debit purchase transactions using the Oxygen Visa® Debit Card within 60 days of opening your account
  4. Oxygen will automatically deposit your $100 bonus in your account! (See full Terms and Conditions)

Why have 14 million people ditched their high-fee bank for Chime?

  • Get up to $200 whenever you need it. Access extra spending power instantly with no overdraft fees2
  • Say goodbye to fees! No monthly fees, no minimum balance requirement and over 60,000 fee-free ATMs
  • 💸💸😎 Get paid up to two days early with direct deposit3
Chime is a financial technology company, not a bank. Banking services and checking account provided by The Bancorp Bank, N.A. or Stride Bank N.A.; Members FDIC.

An overdraft is when you don’t have enough funds in your account to cover a transaction but your bank pays for it anyways.

If you’re a customer of Oxygen, it’s important to know its overdraft policies and what options you have to avoid these costly fees.

As a fintech company, Oxygen’s limits and fees are where they stand out from the rest. Instead of a traditional overdraft protection plan, Oxygen offers their customers the Oxygen Reserve program.

At Oxygen, there are no overdraft fees. You don’t have to enroll in anything to avoid them, as they don’t exist. If you’re looking for an alternative way to access the cash an overdraft would have provided you, consider Oxygen’s Oxygen Reserve program. 

Get a $100 new account bonus >>> Get started with Oxygen

FeeCostMaximum Fees Per DayMaximum Daily Cost
Oxygen Overdraft FeeN/A0N/A
Oxygen Insufficient Funds FeeN/A0N/A
Oxygen Linked Account Transfer Fee$00N/A

What is Oxygen’s overdraft policy?

oxygen bank overdraft fees on phone screen

Oxygen does not allow their customers to overdraft their account without enrolling in the Oxygen Reserve program. If the customer is enrolled, checking accounts are eligible to be overdrafted. You don’t need a linked savings account or credit card to be eligible for the program. 

Oxygen only permits overdrafts on debit card purchases. You cannot use Oxygen Reserve to withdraw cash from an ATM, make bill payments, or transfer funds through services like Venmo or Cash App.

When Oxygen is processing an overdraft transaction, they will look into your account history. They will look for recurring deposits, average daily balance, and whether or not the account is overdrawn often. Normally, the fintech company will only approve automatic bill payments and other transactions they are legally obligated to.

If you don’t enroll in Oxygen Reserve, the bank maintains the right to decline any transaction that could overdraft the account. 

How much are Oxygen’s overdraft fees?

Oxygen does not charge overdraft fees. Instead, they allow their customers to overdraw their accounts if they’re enrolled in the Oxygen Reserve program.

Not every customer is eligible for Oxygen Reserve. To be able to enroll, you must have five qualifications:

  1. Have your account with Oxygen for 31 days.
  2. Have an activated, physical debit card.
  3. Maintain a positive or zero balance for 31 days.
  4. Make at least 5 purchases with your card within the last 31 days.
  5. Receive at least $1,000 in direct deposits within the last 31 days.

Oxygen does not charge returned item fees or NSF fees either. Another common feature of most online banks and fintech companies.

WAIT! High overdraft fees aren't the only way Oxygen 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.

Oxygen savings accounts currently pay just 0.50% APY1 as of 1/10/23. That means that if you have $2,500 in a savings account, you'd earn just $12.53 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:

What is Oxygen’s overdraft limit?

Oxygen bank overdraft limits on phone screen

While many banks keep your overdraft limit a closely guarded, Oxygen shares clear criteria for how it sets your overdraft limit:

  • If you receive at least $1,000 in (qualifying) direct deposits into your Oxygen account within the last 31 days, Oxygen will let you overdraw your account up to $25.
  • Receive at least $1,500 in direct deposits and your overdraft limit is $50
  • Receive at $2,500 or more in direct deposits and your overdraft limit is $120.

If you do not pay back your overdraft account for 15 consecutive days and have another account with a positive balance at Oxygen, they reserve the right to transfer the funds over automatically, covering the debt. If the account has a negative balance for 90 days, it will be closed. 

New customers are not eligible for overdrafts, and have to have an account with Oxygen for 31 days before they can enroll in Oxygen Reserve. Once they enroll, Oxygen Reserve kicks in immediately. You can’t withdraw cash from an ATM though, even in Oxygen Reserve.

Can you get an Oxygen overdraft fee waived?

The great news for Oxygen customers is that it doesn’t charge overdraft fees Public opinion is shifting on overdraft fees. Banks used to be stuffy institutions that charged exorbitant fees, though some major banks like Citibank have eliminated overdraft fees. Now with online banks and fintech companies like Oxygen or Varo, modern day banking customers have more options than ever when choosing how they would like to work with overdrafts. 

If you do have a fee on your Oxygen checking account you’d like someone to look at, feel free to contact their customer service

How to avoid Overdrafts with Oxygen:

Overdraft fees can easily be avoided, especially if you have an account with a fintech company like Oxygen where overdraft fees aren’t even charged. Overdrawing your account is still possible; here are some simple ways to make sure you keep your account in the green:

  • Enroll in Oxygen Reserve. If you’re ever looking for access to alternative funds that may normally come through an overdraft, consider enrolling in Oxygen Reserve. You’re eligible after 31 days and can gain access to a no-fee overdraft limit of up $120.
  • Set up low balance alerts: The Oxygen mobile app allows you to set up low balance alerts. You can choose your own dollar amount as well. By getting notified every time your account crosses a certain threshold, you can stay one step ahead of your finances and avoid going into the negative.
  • Link a savings account: Consider linking a savings account to your checking to transfer funds over in times of need. If your account is overdrawn for more than 15 consecutive business days, Oxygen will make the transfer from savings to checking for you. 

Get a $100 new account bonus >>> Get started with Oxygen

Mitchel Harad
  1. Like many neobanks, Oxygen is a financial technology firm and not a bank. All banking services provided by The Bancorp Bank, N.A. Member FDIC
  2. 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.
  3. 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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