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Updated August 2026.
How much is Webster Bank’s overdraft fee? Webster Bank charges $35 per item it pays into overdraft, capped at 4 fees a day. There is no fee if you end the day $5 or less negative, and no charge for items returned unpaid. Webster Connect Checking is different: that account does not charge an overdraft or return-item fee. Webster is in the process of being acquired by Banco Santander, expected to close August 20, 2026.
| Webster Bank overdraft, at a glance | What it means |
|---|---|
| Overdraft fee | $35 per item, up to 4 fees per day |
| No-fee cushion | No fee if overdrawn by $5 or less at end of day |
| Returned-item (NSF) fee | $0. No charge for returned items on the current fee schedule |
| Overdraft protection transfer fee | Not listed on the current consumer fee schedule |
| ATM and debit card coverage | Off by default. Requires Debit Card Overdraft Services opt-in |
| Pending acquisition | Banco Santander’s acquisition of Webster is expected to close August 20, 2026 |
Fees verified August 17, 2026 from Webster Bank’s Fee Schedule (effective May 1, 2024).
How Webster Bank’s overdraft fee works
Webster Bank charges $35 for each item it pays into overdraft, whether that is a check, an ACH payment, or another electronic transaction, capped at 4 fees in a single business day.
The $5 cushion and free NSF
Webster will not charge a fee if your account is overdrawn by $5 or less at the end of the day. The same fee schedule says there is no charge for items returned against insufficient funds. It does not list a separate overdraft protection transfer fee. Webster Connect Checking does not charge an overdraft fee or a return-item fee.
ATM and debit card transactions
By default, Webster will not authorize an ATM withdrawal or an everyday debit card purchase that would overdraw your account. Those transactions decline for free unless you opt in to Debit Card Overdraft Services.
Webster Bank is being acquired by Santander
Banco Santander announced an agreement to acquire Webster Financial Corporation, the holding company for Webster Bank, in February 2026 in a deal valued at roughly $12.3 billion. As of this writing, the Federal Reserve has approved the deal following approvals from the Office of the Comptroller of the Currency and the European Central Bank, and the transaction is expected to close on August 20, 2026. Until it closes, Webster and Santander continue to operate as separate banks, and Webster’s account terms, including the overdraft fees above, remain unchanged. Santander has said most of Webster’s business will become part of Santander Bank, N.A. after closing, with any account or branding changes communicated to customers in advance.
How Webster Bank compares to the average U.S. bank
Bankrate’s 2025 checking account and ATM fee study found the average overdraft fee across U.S. banks is $26.77 and the average NSF (non-sufficient funds) fee is $16.82. 61% of accounts surveyed still charge an overdraft fee at all, and 66% offer some kind of grace period or no-fee cushion before charging one.
| Category | Webster Bank |
|---|---|
| Overdraft fee vs. $26.77 average | $35 per item, above the $26.77 average |
| NSF fee vs. $16.82 average | $0, well below the $16.82 average |
How to avoid overdraft fees and mistakes
- Stay inside the $5 cushion to avoid the fee on small overages.
- Skip the debit/ATM opt-in if you would rather have a purchase declined than pay $35.
- Set up balance alerts through Webster’s Mobile Banking app.
- Ask Webster about linking a savings account or credit line for overdraft protection. The current fee schedule does not list a transfer fee.
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How this compares to other banks
Here is how this account lines up against a few named banks we track, using each bank’s own current fee schedule.
| Bank (typical account) | Overdraft fee | No-fee cushion |
|---|---|---|
| Webster Bank | $35, up to 4/day | $5 cushion, no NSF fee |
| Santander Bank | Currently a separate bank; see Santander’s own overdraft guide | N/A until acquisition closes |
| Huntington (Asterisk-Free) | $15, up to 3/day | $50 Safety Zone + 24-Hour Grace |
| Chase (Total Checking) | $34, up to 3/day | $50 buffer + Overdraft Assist |
| Ally Bank (Spending Account) | $0, none charged | No cap needed |
See fee details for more banks in our overdraft fees by bank page.
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FAQ
How much is Webster Bank’s overdraft fee?
Webster charges $35 per item it pays into overdraft, up to a maximum of 4 fees per day.
Is there a cushion before Webster charges an overdraft fee?
Yes. No fee applies if your account ends the day overdrawn by $5 or less.
Does Webster Bank charge an NSF fee?
No. Webster’s current fee schedule says there is no charge for items returned against insufficient funds. Webster Connect Checking also does not charge a return-item fee.
Is Webster Bank being bought by another bank?
Yes. Banco Santander is acquiring Webster Financial Corporation in a deal expected to close August 20, 2026, pending final steps. Webster operates independently until then.
Will Webster’s overdraft fees change after the Santander acquisition closes?
Nothing has changed yet. Santander has said any future account or branding changes will be communicated to customers well in advance.
Can Webster overdraft my debit card or ATM withdrawal?
Only if you opt in to Debit Card Overdraft Services. Otherwise those transactions are declined for free.
