How much can you overdraft your checking account?

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Key takeaways

Overdraft limits vary by bank and account type, typically ranging from $20 to $2,500.
Overdraft protection can help cover negative balances but often comes with fees and can get expensive.
Monitor your balance, link your checking account to your savings, and consider banks with no-fee overdraft options to avoid these costly charges.

How much can you overdraft your checking account? The answer depends on your bank. Most banks provide overdraft protection, allowing you to spend more than is in your account. The exact limit ranges from $20 up to $2,500. And you’ll have to opt in.

Being able to overdraw your account can be helpful when you’re short on cash, but it comes with fees that can quickly add up. Let’s take a closer look at how overdraft fees work and how to get around them.

What is an overdraft?

An overdraft is when you spend more money than you have in your account and the bank covers the difference. Your balance is now negative and you owe the bank money.

It can happen due to debit card purchases, checks, automatic payments, electronic payments, or ATM transactions. Anything that causes your balance to dip below zero. Most people do not realize when they are about to spend too much and incur an overdraft.

For example, you have $200 in the bank. You make a purchase of $160 but forget that your electricity bill is due. The electric company automatically deducts $100. The bank covers the difference, and you have a negative balance of $60 plus a $35 overdraft fee.

If you make another transaction while your balance is negative, you’ll likely incur a second overdraft fee. It can get expensive fast, and the bank may even shut down your account.

The good news is that many banks are eliminating or reducing overdraft-related fees.

How does overdraft protection work?

Overdraft protection allows banks to let transactions go through even if you don’t have the money. You have to opt into this service. When you agree, the bank will cover your transaction but charge you an overdraft fee. If you opt-out, the bank will decline your transaction and charge you an insufficient funds fee. It’s not a great situation, but you can find banks that don’t charge at least one of these fees.

Many banks provide an overdraft protection service where you link your checking account to your savings account or line of credit. If you overdraw your checking account, the bank will automatically transfer funds from your savings to cover the negative balance. Many banks will charge a fee for this service.

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Limitations and fees

Even with overdraft protection, there are limits. Each bank may have its own overdraft limit, which is the maximum amount it will allow you to go over your balance. If you exceed this limit, the bank will decline the transaction.

Expect fees when using overdraft protection. Banks typically charge a separate fee for each transaction that overdraws your account. These fees vary by bank, so checking your bank’s specific policies is essential.

Potential overdraft fees include:

Overdraft fee: Charged for each transaction that causes your checking account balance to go negative. Average $35 per transaction.

Non-sufficient funds (NSF) fee: If the bank declines a transaction due to insufficient funds, they will charge an NSF or insufficient funds fee. Average $17.72 per transaction.

Extended overdraft fee: The fee you pay if your balance remains negative for several business days. Ranges from $30 to $35 per occurrence.

Overdraft protection fee: This covers the cost of transferring money from your savings account or line of credit to cover a negative balance. Range from $0 to $12.50 per transfer.

Returned check fee: Charged if your check bounces due to a negative balance.

Account closures

Your bank may close your account if you overdraw it frequently or do not promptly pay back the overdrawn balance and fees. Check your bank’s terms and conditions to find out their exact policy.

Involuntary account closures can hurt your credit score and will be added to your ChexSystems or Early Warning Services (EWS) reports. Having negative marks on these reports will make it harder to open a bank account in the future.

Debt collection

Just because the bank closed your account does not mean you’re off the hook for fees. They will notify you about the action, your outstanding balance, and what will happen if you don’t pay.

Most banks will try to collect fees themselves. They may send your account to a debt collection agency if all else fails. Having an account in collections is a serious issue that can impact your credit rating and make it harder to borrow in the future. You will also have the stress of dealing with collection agencies.

How much can I overdraft my checking account?

The amount of money you’re allowed to overdraw your account by depends on your bank’s policies, your account type, and your banking history. The bank may set a different limit if you have direct deposit or have a long relationship with the institution. It can be difficult to determine the exact limit.

The limit can also depend on the type of transaction. A bank may set one limit for checks or ATM withdrawals and another for debit card transactions.

Instead of focusing on the maximum overdraft limit, consider how much you can overdraw without incurring a bank fee. A few major banks have set this limit to $50 and have also put limits on how many times you can overdraw your account in one business day. The bank will decline further transactions once you’ve reached your overdraft limit.

Here are a few examples of overdraft coverage fees and limits from popular banks.

Bank	Overdraft coverage fee	Max fees per day	Overdraft limit
Bank of America	$10 for overdrafts over $1	Max 2 per day	Not disclosed
Capital One 360	$0	N/A	N/A
Chase	$34 (No fees if the account is overdrawn by $50 or less)	Max of 3 fees per business day	Not disclosed
Chime	$0	N/A	$20-$200
CitiBank	$0	N/A	N/A
Current	$0	N/A	$25-$200
SoFi	$0	N/A	$50
TD Bank	$35 (No fees if the account is overdrawn by $50 or less)	Max of 3 fees per day, per account	Not disclosed
Wells Fargo	$35 (No fees if the account is overdrawn by $10 or less)	No more than 3 fees per business day	Not disclosed

Increase your overdraft limit

If you have a significant expense coming up that you’re not sure you’ll have the funds to cover, you can request a higher overdraft limit.

Call customer service, use the banking app, or visit a local branch to discuss your options. You will have better luck if your checking account is in good standing. This means you have a positive balance and you do not overdraw frequently. When you do overdraw, you bring your balance back to zero and pay fees promptly.

When approving an increase, banks may consider factors like your banking history, income, recent direct deposits, and debit card transactions. They want to make sure that you can afford a higher limit. If approved, use this feature wisely to avoid building up debt or encountering more fees.

What can you do if you overdraft?

Spending more than you have in your bank account can be stressful. You now have a negative balance and owe the bank fees. Here’s what you can do:

Transfer money

Transfer money from another account as fast as possible. If you transfer money immediately and bring your balance back to zero before the end of the day, you may be able to avoid fees.

Stop using the account

While waiting to remedy a negative balance, stop using the account. Put your debit card away. Do not withdraw cash. Halt any automatic bill payments. Not charging more to the account prevents additional overdraft fees and ensures the negative balance doesn’t increase. Switch to using cash, credit cards, or prepaid cards until the issue is resolved.

Request a fee waiver

If it’s your first time or you rarely overdraw your account, you can request to have the fees waived. Call your bank and ask for a fee waiver. Politely explain the situation and see if they can waive any charges.

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How to avoid overdrawing your account

Not overdrawing is easier said than done. The best thing you can do is keep track of your bank balance. Online banking makes it easier to do this these days.

Check your bank’s overdraft policy

Different banks have different rules regarding overdrafts. Find out what overdraft limit applies to you. Inquire about when they charge overdraft fees. Some banks offer a grace period where you can deposit funds and avoid fees. Others only charge a fee when the overdraft exceeds $50. Find out where your bank stands on overdraft charges, NSF fees, and extended overdraft fees. Knowing these details can help you avoid unpleasant surprises.

Don’t opt into overdraft protection

Federal regulations require that banks let customers choose whether or not to opt into overdraft protection. If you forgo the protection, your transactions will be declined, but you’ll avoid the fees. You can always cancel overdraft protection if the costs are too much.

Declining protection comes at a cost. The bank will decline your transactions if you do not have the money. The denials are inconvenient, but on top of that, you may be charged fees. You may incur an NSF fee or returned payment fee instead. While these fees are usually less than overdraft charges, they can still add up.

Link your savings account

Many banks let you link your checking to your savings account. If your checking account is too low, the bank automatically transfers money from your savings. You avoid a negative balance and overdraft fees. Be aware there might be a transfer fee, so check with your bank.

Track your balance

Always have an idea of how much is in your checking account. Make it a habit to check your balance before debit card purchases or ATM withdrawals. Regularly checking your account status helps you avoid having insufficient funds.

Keep a cushion

Always keep a little extra in your account to prevent accidentally overdrawing it. An extra $50 that you don’t touch should do it. The cash will act as a buffer in case of unexpected expenses or fees.

Set up low-balance alerts

Most banks will alert you via text or email when your daily balance drops below a certain amount. The alert gives you time to fix the situation.

Frequently asked questions

1. How much can I overdraft my checking account?

The maximum you can overdraft depends on your bank and its policies. Many banks set limits based on your account history, direct deposits, and overdraft protection enrollment. Typically, overdraft limits range from $20 to $2,500. Exceeding this limit may result in declined transactions or additional fees. Confirm specifics with your bank to avoid unexpected fees or declined transactions.

2. What banks have no overdraft fees?

Banks with no overdraft fees include Chime, Capital One 360, Discover Bank, and Ally Bank. These institutions have eliminated traditional overdraft charges.

Bottom line

Your overdraft limit depends on your bank. While it is good to know your limit, it is even better not to overdraw your account in the first place. Overdrawing can be extremely expensive quickly.

The best thing you can do is monitor your balance regularly. Set up alerts when your balance is low, and try to keep a cushion at all times. Link your deposit account to a savings account to cover the shortfall. It may cost money, but it’ll be cheaper than overdraft fees.

Overdrafts are very common. If you incur a fee, ask to have it waived. Add money back into your account ASAP to avoid incurring more fees. Try to find a bank that does not charge overdraft or NSF fees.

When you frequently overdraw your balance, it may be time to switch to online banking. Often, online banks don’t charge overdraft fees and have a lower fee structure overall. A banks with no overdraft fees can save you hundreds per year.

1. Paycheck Advance is For eligible customers only. Your actual available Paycheck Advance amount will be displayed to you in the mobile app and may change from time to time. Conditions and eligibility may vary and are subject to change at any time, at the sole discretion of Finco Advance LLC, which offers this optional feature. Finco Advance LLC is a financial technology company, not a bank. Expedited disbursement of your Paycheck Advance is an optional feature that is subject to an Instant Access Fee and may not be available to all users. Expedited disbursements may take up to an hour. For more information, please refer to Paycheck Advance Terms and Conditions. Current is a financial technology company, not an FDIC-insured bank. FDIC insurance up to $250,000 only covers the failure of an FDIC-insured bank. Certain conditions must be satisfied for pass-through deposit insurance coverage to apply. Banking services provided by Choice Financial Group, Member FDIC, and Cross River Bank, Member FDIC. The Current Visa® Debit Card issued by Choice Financial Group, and the Current Visa® secured charge card issued by Cross River Bank, are both pursuant to licenses from Visa U.S.A. Inc. and may be used everywhere Visa debit or credit cards are accepted. Current Individual Account required to apply for the Current Visa® secured charge card. Independent approval required. Faster access to funds is based on comparison of traditional banking policies and deposit of paper checks from employers and government agencies versus deposits made electronically. Direct deposit and earlier availability of funds is subject to timing of payer’s submission of deposits.

2. Debit card: Fees may apply, including out of network cash withdrawal fees, third-party fees, cash load fees, inactivity fees, account closure fees, international transaction fees, replacement card fees, express mail fees and escheatment fees. Build Card: Some fees may apply, including out of network ATM fees of $2.50 per transaction, late payment fees of 3% of any total due balance outstanding and past due for two or more billing cycles, foreign transaction fees of 3% of the full transaction amount (minimum $0.50), card replacement fees per card of $5 for regular delivery and $30 for expedited delivery, cash deposit fees of $3.50 per deposit, and third party processing fees.

3. Current is a financial technology company, not a bank. Banking services provided by Choice Financial Group, Member FDIC, and Cross River Bank, Member FDIC. The Current Visa® Debit Card is issued by Choice Financial Group pursuant to a license from Visa U.S.A. Inc. and may be used everywhere Visa debit cards are accepted. The Current Visa® secured charge card is issued by Cross River Bank pursuant to a license from Visa U.S.A. Inc. and may be used everywhere Visa credit cards are accepted. Please see the back of your Card for its issuing bank. Current Individual Account required to apply for the Current Visa® secured charge card. Independent approval required.

4. Individual results may vary. Using your credit card responsibly may allow you to improve your credit score. Credit building depends on various factors, including your payment history, credit utilization, length of credit history, and other financial activities.

5. Faster access to funds is based on comparison of traditional banking policies and deposit of paper checks from employers and government agencies versus deposits made electronically. Direct deposit and earlier availability of funds is subject to timing of payer’s submission of deposits.

6. Current is a financial technology company, not a bank. Banking services provided by Choice Financial Group. Funds held in Savings Pods are FDIC-insured on a pass-through basis up to $250,000 at our partner bank Choice Financial Group, member FDIC.

7. Paycheck Advance is For eligible customers only. Your actual available Paycheck Advance amount will be displayed to you in the mobile app and may change from time to time. Conditions and eligibility may vary and are subject to change at any time, at the sole discretion of Finco Advance LLC, which offers this optional feature. Finco Advance LLC is a financial technology company, not a bank.

8. Expedited disbursement of your Paycheck Advance is an optional feature that is subject to an Instant Access Fee and may not be available to all users. Expedited disbursements may take up to an hour. For more information, please refer to Paycheck Advance Terms and Conditions.

9. Actual overdraft amount may vary and is subject to change at any time, at Current’s sole discretion. In order to qualify and enroll in the Fee-Free Overdraft feature, you must receive $500 or more in Eligible Direct Deposits into your Current Account over the preceding 35-day period and fulfill other requirements subject to Current’s discretion. Negative balances must be repaid within 60 days of the first Eligible Transaction that caused the negative balance. For more information, please refer to Fee-free Overdraft Terms and Conditions. Individual Current Accounts only.

10. For eligible customers only. You may earn Points in connection with your Build Card purchases at retailers whose merchant code is classified as: Dining (e.g., restaurants) and Groceries (e.g., supermarkets) and by completing other actions that Current designates as subject to the Current Points Program. The amount of Points granted for different actions as well as the purchase requirements necessary to earn Points will vary, and is subject to Current’s sole discretion. After qualifying, please allow 3-5 business days for points to post to your Current account. Points will expire 365 days after they settle. For more information (including specific eligibility criteria), please refer to the Current Points Terms and Condition.

11. Some fees may apply, including out of network ATM fees of $2.50 per transaction, late payment fees of 3% of any total due balance outstanding and past due for two or more billing cycles, foreign transaction fees of 3% of the full transaction amount (minimum $0.50), card replacement fees per card of $5 for regular delivery and $30 for expedited delivery, cash deposit fees of $3.50 per deposit, and third party processing fees.

12. Boost Bonuses are credited to your Savings Pods within 48 hours of enabling the Boost feature and on a daily basis thereafter, provided that the Savings Pod has accrued a Boost Bonus of at least $0.01. No minimum balance required. The Boost rate on Savings Pods is variable and may change at any time. The disclosed rate is effective as of August 1, 2023. Must have $0.01 in Savings Pods to earn a Boost rate of either 0.25% or 4.00% annually on the portion of balances up to $2000 per Savings Pod, up to $6000 total. The remaining balance earns 0.00%. To earn a Boost rate of 4.00%, the sum of your Eligible Payroll Deposits over a rolling 35-day period must be $500 or more, with at least one Eligible Payroll Deposit equalling a minimum of $200. For more information, please refer to Current Boost Terms and Conditions.

13. Current is a financial technology company, not a bank. Banking services provided by Choice Financial Group. Your money is FDIC-insured on a pass-through basis up to $250,000 at each of our partner banks, Choice Financial Group and Cross River Bank, members FDIC.

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15. Up to $500 per Covered Trip that is delayed for more than 6 hours; and 2 claims per Eligible Card per 12 consecutive month period. Eligibility and Benefit level varies by Card. Terms, Conditions, and Limitations Apply. Please visit americanexpress.com/benefitsguide for more details. Underwritten by New Hampshire Insurance Company, an AIG Company.

16. The maximum benefit amount for Trip Cancellation and Interruption Insurance is $10,000 per Covered Trip and $20,000 per Eligible Card per 12 consecutive month period. Eligibility and Benefit level varies by Card. Terms, Conditions, and Limitations Apply. Please visit americanexpress.com/benefitsguide for more details. Underwritten by New Hampshire Insurance Company, an AIG Company.

17. Baggage Insurance Plan coverage can be in effect for Covered Persons for eligible lost, damaged, or stolen Baggage during their travel on a Common Carrier Vehicle (e.g. plane, train, ship, or bus) when the Entire Fare for a ticket for the trip (one- way or round-trip) is charged to an Eligible Card. Coverage can be provided for up to $2,000 for checked Baggage and up to a combined maximum of $3,000 for checked and carry-on baggage, in excess of coverage provided by the Common Carrier. The coverage is also subject to a $3,000 aggregate limit per Covered Trip. For New York State residents, there is a $2,000 per bag/suitcase limit for each Covered Person with a $10,000 aggregate maximum for all Covered Persons per Covered Trip. Eligibility and Benefit level varies by Card. Terms, Conditions, and Limitations Apply. Please visit americanexpress.com/benefitsguide for more details. Underwritten by AMEX Assurance Company.

18. Car Rental Loss and Damage Insurance can provide coverage up to $75,000 for theft of or damage to most rental vehicles when you use your eligible Card to reserve and pay for the entire eligible vehicle rental and decline the collision damage waiver or similar option offered by the Commercial Car Rental Company. This product provides secondary coverage and does not include liability coverage. Not all vehicle types or rentals are covered. Geographic restrictions apply. Eligibility and Benefit level varies by Card. Terms, Conditions, and Limitations Apply. Please visit americanexpress.com/benefitsguide for more details. Underwritten by AMEX Assurance Company. Car Rental Loss or Damage Coverage is offered through American Express Travel Related Services Company, Inc.

19. Coverage for a Stolen or damaged Eligible Cellular Wireless Telephone is subject to the terms, conditions, exclusions, and limits of liability of this benefit. The maximum liability is $800, per claim, per Eligible Card Account. Each claim is subject to a $50 deductible. Coverage is limited to two (2) claims per Eligible Card Account per 12 month period. Eligibility and Benefit level varies by Card. Terms, Conditions, and Limitations Apply. Please visit americanexpress.com/benefitsguide for more details. Underwritten by New Hampshire Insurance Company, an AIG Company.

20. When an American Express® Card Member charges a Covered Purchase to an Eligible Card, Extended Warranty§ can provide up to one extra year added to the Original Manufacturer’s Warranty. Applies to warranties of five (5) years or less. Coverage is up to the actual amount charged to your Card for the item up to a maximum of $10,000; not to exceed $50,000 per Card Member account per calendar year. Eligibility and Benefit level varies by Card. Terms, Conditions, and Limitations Apply. Please visit americanexpress.com/benefitsguide for more details. Underwritten by AMEX Assurance Company.

21. Purchase Protection is an embedded benefit of your Card Membership and requires no enrollment. It can help protect Covered Purchases made on your Eligible Card when they’re accidentally damaged, stolen, or lost, for up to 90 days from the Covered Purchase date. The coverage is limited to up to $10,000 per occurrence, up to $50,000 per Card Member account per calendar year. Coverage Limits Apply. Eligibility and Benefit level varies by Card. Terms, Conditions, and Limitations Apply. Please visit americanexpress.com/benefitsguide for more details. Underwritten by AMEX Assurance Company.

22. Chime is a financial technology company, not a bank. Banking services provided by The Bancorp Bank, N.A. or Stride Bank, N.A., Members FDIC.

23. The secured Chime Credit Builder Visa® Card is issued by Stride Bank, N.A., Member FDIC, pursuant to a license from Visa U.S.A. Inc. and may be used everywhere Visa credit cards are accepted.

24. Banking services and debit card provided by The Bancorp Bank N.A. or Stride Bank, N.A., Members FDIC, pursuant to a license from Visa U.S.A. Inc. and may be used everywhere Visa debit cards are accepted.

25. The Annual Percentage Yield (“APY”) for the Chime Savings Account is variable and may change at any time. The disclosed APY is effective as of September 20, 2023. No minimum balance required. Must have $0.01 in savings to earn interest.

26. There’s no fee for the Chime Savings Account. Cash withdrawal and Third-party fees may apply to Chime Checking Accounts. You must have a Chime Checking Account to open a Chime Savings Account.

27. To apply for Credit Builder, you must have received a single qualifying direct deposit of $200 or more to your Chime Checking Account. The qualifying direct deposit must be from your employer, payroll provider, gig economy payer, or benefits payer by Automated Clearing House (ACH) deposit OR Original Credit Transaction (OCT). Bank ACH transfers, Pay Anyone transfers, verification or trial deposits from financial institutions, peer to peer transfers from services such as PayPal, Cash App, or Venmo, mobile check deposits, cash loads or deposits, one-time direct deposits, such as tax refunds and other similar transactions, and any deposit to which Chime deems to not be a qualifying direct deposit are not qualifying direct deposits.

28. Money added to Credit Builder will be held in a secured account as collateral for your Credit Builder Visa card, which means you can spend up to this amount on your card. This is money you can use to pay off your charges at the end of every month.

29. Based on a representative study conducted by Experian®, members who made their first purchase with Credit Builder between June 2020 and October 2020 observed an average FICO® Score 8 increase of 30 points after approximately 8 months. On-time payment history can have a positive impact on your credit score. Late payment may negatively impact your credit score.

30. On-time payment history may have a positive impact on your credit score. Late payment may negatively impact your credit score. Chime will report your activities to Transunion®, Experian®, and Equifax®. Impact on your credit may vary, as Credit scores are independently determined by credit bureaus based on a number of factors including the financial decisions you make with other financial services organizations.

31. 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.

32. SpotMe® on Debit is an optional, no fee overdraft service attached to your Chime Checking Account. To qualify for the SpotMe on Debit service, you must receive $200 or more in qualifying direct deposits to your Chime Checking Account each month and have activated your Visa debit card. Qualifying members will be allowed to overdraw their Chime Checking Account for up to $20 on debit card purchases and cash withdrawals initially but may later be eligible for a higher limit of up to $200 or more based on Chime Account history, direct deposit frequency and amount, spending activity and other risk-based factors. The SpotMe on Debit limit will be displayed within the Chime mobile app and is subject to change at any time, at Chime’s sole discretion. Although Chime does not charge any overdraft fees for SpotMe on Debit, there may be out-of-network or third-party fees associated with ATM transactions. SpotMe on Debit will not cover any non-debit card transactions, including ACH transfers, Pay Anyone transfers, or Chime Checkbook transactions. SpotMe on Debit Terms and Conditions.

33. Tipping or not tipping has no impact on your eligibility for SpotMe®.

34. Out-of-network ATM withdrawal fees may apply except at MoneyPass ATMs in a 7-Eleven, or any Allpoint or Visa Plus Alliance ATM.

35. Save When I Get Paid automatically transfers 10% of your direct deposits of $500 or more from your Checking Account into your savings account.

36. Round Ups automatically round up debit card purchases to the nearest dollar and transfer the round up from your Chime Checking Account to your savings account.

37. Mobile Check Deposit eligibility is determined by Chime in its sole discretion and may be granted based on various factors including, but not limited to, a member’s direct deposit enrollment status.

38. Funds are automatically debited from your Checking Account and typically deposited into the recipient’s Checking Account within seconds. Pay Anyone transactions will be monitored and may be held, delayed or blocked if the transfer could result in fraud or another form of financial harm. Sometimes instant transfers can be delayed.

39. Pay Anyone transactions will be monitored and may be held, delayed or blocked if the transfer could result in fraud or another form of financial harm. Sometimes instant transfers can be delayed. Non-Chime members must use a valid debit card to claim funds.

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Rachel Alulis

Rachel Alulis has been the lead editor for Moneyfor’s credit cards team since 2015 and for the financial rewards team since 2023. Before joining Moneyfor, Rachel worked at USA Today and the Des Moines Register. She then established a successful freelance writing and editing business specializing in personal finance. Rachel holds a bachelor’s degree in journalism and an MBA.

How much can you overdraft your checking account?

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