How Many Overdraft Fees Can a Bank Charge

Florence Desiata

The bank determines the number and quantity of overdraft fees that can be charged to an account. It typically ranges from $34 to $36 per visit and can be paid for within a grace period that must be communicated to the client.

Finding an overdraft fee in your account can be daunting. Read on to learn how many overdraft fees a bank can charge and how to deal with them.

How Many Overdraft Fees Can a Bank Charge?

An overdraft occurs when a bank or credit union pays for a transaction in which a checking account does not have enough funds. It works as a loan that can be used for checks, ATM withdrawals, and debit card transactions. Likewise, overdrafts must be paid off by depositing the overdrawn amount in your checking account.

According to Federal laws, there’s no limit on how many overdraft fees can be charged to an account. However, banks are mandated to inform customers about their overdraft policies and penalties.

Here is a list of the most commonly used banks in the US and the overdraft fee that they charge as of February 2023:

BankOverdraft FeeExtended Overdraft FeeDaily Limit
Wells Fargo Bank$35$03
Chase Bank$34$15 every five days3
Bank of America$35$35 every five days4
US Bank$36$24 every week4
PNC Bank$36$7 every day4

How to Pay Overdraft Fees

You must fund the account with the total amount incurred to pay for the overdraft and its associated fee. This can be accomplished by making a deposit, which should be done as soon as possible because most banks charge extended fees for overdue balances.

Thankfully, most banks do not impose fees for overdrafts worth $5 or less. But, avoiding debt is best accomplished by never having an overdraft in the first place.

Tips on How to Avoid Overdraft Fees

Overdraft fees can be prevented. The following actionable tips on how to avoid these fines:

Link to A Credit Card or Savings Accounts

If a checking account signed up for overdraft protection is linked to a credit card or savings account, the bank automatically transfers funds between the two to avoid overdrawing. However, a transfer fee will still be charged, albeit less than overdraft fees, averaging only $12.

Use Expense Trackers and/or Bank Alerts

Mobile expense trackers give you a real-time overview of your finances. These can show you when your account is dipping so that you can deposit more, transfer funds, or spend less.

Meanwhile, bank alerts sent via text messages and/or emails can also inform you how much you still have in your account.

Go for a Direct Deposit

If possible, arrange for direct deposit with your employer, so your account is regularly updated and immediately updated without waiting for a check. Monthly dues paired with late checks are a financial disaster that could be avoided with a direct deposit setup.

Bottom Line: Beware of Overdraft Fee

Even if one or several overdrafts can save the day, it is still better to be mindful of all your expenses. Track them as much and as often as possible. But if you feel it is better to be safe than sorry and would prefer not to be in debt, you could choose not to go for overdraft protection. Anyway, it is not required of clients to use this bank service.

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