Overdraft fees are not a fixed amount — they vary by bank and by the type of transaction

There is no single overdraft fee that applies everywhere. Each bank sets its own fee, and the amount you pay depends on which bank holds your account and sometimes on what kind of transaction triggered the overdraft. A typical overdraft fee ranges from $25 to $35 per transaction, but some banks charge as little as $15 and others charge $40 or more. A few banks charge nothing at all.

The fee is charged each time a transaction pushes your account below zero. If you overdraft twice in one day — say, a debit card purchase in the morning and a check that clears in the afternoon — you may be charged twice. Some banks cap the total fees you can incur in a single day, while others do not.

Beyond the initial overdraft fee, some banks also charge a sustained overdraft fee if your account stays negative for several days. This is a separate charge, usually $5 to $15 per day, that keeps accumulating until you deposit money and bring the account back to zero or above.

Key Takeaways

  • Overdraft fees typically range from $25 to $35 per transaction, but the exact amount depends on your specific bank.
  • You can be charged multiple overdraft fees in a single day if more than one transaction overdrafts your account.
  • Some banks charge an additional daily fee if your account remains overdrawn for several consecutive days.
  • Your bank's fee schedule is listed in the account agreement or fee schedule you received when you opened the account, or you can call and ask.

How to find your bank's specific overdraft fee

The fastest way is to call your bank's customer service line or log into your online banking portal and look for "fees" or "account fees." Most banks publish a fee schedule that lists the overdraft fee amount alongside other charges like monthly maintenance fees or ATM fees.

If you received a welcome packet when you opened your account, the fee schedule is usually included as a separate document. You can also ask a teller at a branch to show you the current fee schedule in writing. Banks are required to disclose this information, and they will not charge you for asking.

What happens when you overdraft and cannot pay the fee

If your account goes negative and you are charged an overdraft fee, that fee itself can push your account even further into the negative. For example, if you have $10 in your account and a $30 transaction goes through, you now owe $20. The bank then charges a $30 overdraft fee, bringing your balance to -$50. You now owe the bank $50 before your account is back to zero.

If you do not deposit money to cover the overdraft and the fee, the bank may eventually close your account and report you to ChexSystems, a banking history database. This can make it harder to open a new account at another bank. Some banks will work with you on a payment plan if you contact them before the situation escalates, so calling as soon as you realize you have overdrawn is worth doing.

Banks that charge no overdraft fees

A growing number of banks and credit unions do not charge overdraft fees at all. Some simply decline transactions that would overdraft your account — your debit card is declined at the register, or the check bounces — rather than allowing the transaction and charging you a fee. Others allow overdrafts but do not charge for them, though they may still expect you to repay the negative balance.

If overdraft fees are a concern for you, it is worth asking your current bank whether they offer an overdraft protection plan, or whether they would waive fees in certain circumstances. You can also shop around: some online banks and credit unions advertise no-overdraft-fee policies as a selling point. Switching banks takes time, but if you overdraft frequently, the savings can add up.

The difference between overdraft fees and NSF fees

An NSF fee (non-sufficient funds) is charged when a transaction is declined because you do not have enough money, rather than allowed to go through. Some banks charge NSF fees even though they do not allow the overdraft itself. The NSF fee is usually the same amount as an overdraft fee — $25 to $35 — but it is charged for a declined transaction, not an approved one that went negative.

The practical difference: with an overdraft, the transaction goes through and you owe the bank money. With an NSF decline, the transaction fails and you owe nothing to the bank, but you may owe money to whoever you were trying to pay (a store, a landlord, a utility company) if they charge you for the failed payment.

How overdraft protection works and whether it saves money

Some banks offer overdraft protection, which links your checking account to a savings account or credit line. If a transaction would overdraft your checking account, the bank automatically transfers money from the linked account to cover it. This prevents the overdraft fee from being charged.

Overdraft protection sounds helpful, but it has a cost. If the linked account is a savings account, the transfer may trigger a fee (usually $1 to $3 per transfer). If the linked account is a credit line or line of credit, you are borrowing money and will pay interest on it. Before you set up overdraft protection, ask your bank what fees or interest charges apply, and do the math: is the cost of protection lower than the cost of an overdraft fee?

Why banks charge overdraft fees

Banks charge overdraft fees because they are lending you money when they allow a transaction to go through on a negative balance. From the bank's perspective, they are taking a risk that you will not repay the overdraft, and the fee is compensation for that risk. Banks also use overdraft fees as revenue — they are a significant source of income for many institutions.

This does not mean the fee is fair or unavoidable. Many consumer advocates argue that overdraft fees disproportionately harm people living paycheck to paycheck, who are more likely to overdraft and less able to absorb the fee. Some states and cities have proposed or passed limits on overdraft fees, but these rules vary by location and do not apply everywhere.

Frequently Asked Questions

Can a bank charge me multiple overdraft fees in one day?

Yes. Each transaction that overdrafts your account can trigger a separate fee. If you have $10 in your account and three transactions totaling $50 go through, you could be charged three overdraft fees — one for each transaction. Some banks cap the total fees per day (for example, charging a maximum of $100 in overdraft fees per day), but not all do.

What is the difference between an overdraft fee and a sustained overdraft fee?

An overdraft fee is charged once when a transaction pushes your account negative. A sustained overdraft fee is charged daily (usually $5 to $15 per day) if your account stays negative for several days. Not all banks charge sustained overdraft fees, so check your fee schedule to see whether yours does.

If I overdraft, do I have to pay the fee even if I deposit money right away?

Yes. The fee is charged when the overdraft occurs, not based on how long it lasts. Depositing money immediately stops additional fees from accumulating, but it does not reverse the overdraft fee that was already charged. You would need to contact your bank and ask them to waive the fee, which they may or may not do.

Will overdraft fees hurt my credit score?

Overdraft fees themselves do not directly appear on your credit report. However, if you do not repay the overdraft and the bank closes your account and reports you to ChexSystems, that can make it harder to open a new account. If the bank sends your debt to a collection agency, that will hurt your credit score.

Can I dispute an overdraft fee?

You can ask your bank to waive or refund an overdraft fee, especially if it is your first one or if the overdraft was caused by a bank error. Banks are not required to waive fees, but many will do so once if you call and explain your situation. Asking costs nothing, and some banks have policies allowing them to reverse one or two fees per year.