Overdraft Fees: Compare What Banks Charge

An overdraft fee is often one of the most expensive fees from a financial institution, but not all charge the same amount. And some don’t even have an overdraft fee.

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Institutions with low or no overdraft fees

What is an overdraft fee?

When a transaction drops your checking account balance below zero, a financial institution will reject or cover the transaction. You may be charged fees in either case. The charge for a rejected transaction or check is known as a nonsufficient funds fee, while the charge for an approved transaction is called an overdraft fee. Some providers charge multiple nonsufficient funds or overdraft fees per day if you make many transactions with a negative balance, meaning you could owe hundreds of dollars in penalties.

To learn more, you can read our explainer on how to avoid overdraft fees. As a rule, it’s best to opt out of overdraft coverage for ATM or one-time debit card transactions if you think you'll have issues with overdrafts. When you opt out, the negative debit or ATM transaction will be declined and you won’t be charged a fee.

If you haven't paid overdraft fees and have been put into ChexSystems, you may want to look into opening a second-chance checking account. These accounts are designed to help consumers qualify for a new checking account even with marks on their banking record.

» Need a fresh start? Take a look at second-chance checking accounts across the U.S.

Some financial institutions don’t charge overdraft fees if an account is overdrawn by $5 or less at the end of the business day. So if you buy a $6 sandwich with $2 in your account, you would be exempt from a fee.

» Looking for a savings account? Read NerdWallet’s list of best savings accounts

Overdraft protection

Outside of the financial institutions without any overdraft coverage fees, you can generally find a cheaper option with overdraft protection transfers.

These are opt-in programs that link a second account to your checking account. An overdraft would trigger a transfer from the second account to cover the transaction. The linked account can be a savings account, credit card, line of credit or even another checking account, depending on the provider’s policy. The cost of this transfer is around $10 or $12, although it can be cheaper. Sometimes the service is free.

Overdraft fees by institution

How to get overdraft fees waived

If you’re charged an overdraft fee, here are some ways you may be able to get it waived.

1. If you don’t have a history of negative transactions, contact your financial institution's customer service department and ask if they will waive it.

2. Ask about forgiveness policies. Some institutions have once-a-year fee forgiveness programs for customers in good standing.

3. Ask about "rewind" programs. If you have an electronic deposit scheduled for your account that would have covered the overdrawn transaction, some providers will consider waiving the fee if the deposit arrives soon enough, usually by the next morning.

Overdraft fees, especially from overdraft coverage, are some of the steepest fees that financial institutions charge. Knowing these fees might help you decide whether to opt out of the programs or find cheaper overdraft alternatives.

» Want to learn more? Read NerdWallet’s explainer on overdraft fees