Finance

ATMs That Let You Overdraft And Things To Consider Before Going Ahead

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It is always a dire situation when we wish to take out more money from our account than we have. Luckily, there are ATMs that let you overdraft but you should consider how expensive the process can be!

What Will We Talk About Here?
1. Capital One, BBVA, and Chase Bank are leading options that let customers overdraft at ATMs.
2. The overdraft fee can be as high as $30 or more depending on the financial institute.
3. You can use credit card for overdraft as well but that can incur outrageously high interest rates.

…and Much More!

Are There Any ATMs That Let You Overdraft?

Yes! You can take out cash at an ATM even if you don’t have enough balance in your account. Typically, you need to have overdraft protection to do so.

So, you are basically looking for banks that let you overdraft at their ATMs. Here’s a list of 11 financial institutes that let you do just that but, watch out, since there are always some penalty fees involved!

Capital One

Capital One is known for its credit card services but another stand out feature is that it lets its users how to overdraft ATM with flexible terms.

  1. It charges overdraft fee of $35.
  2. You can withdraw 4 times a day.
  3. There is no fee if withdrawn amount is less than $5.
  4. The fee is refunded if you pay back the balance within next business day.
  5. You must opt for Next Day Grace to avail overdraft protection.

BBVA

If you aren’t in mood to compromise on the quality of the service then BBVA is the best choice for you.

  1. The bank charges an overdraft fee of $38.
  2. The fee is lesser in California ($32).
  3. Overdraft services are given only after you opt for Courtesy Overdraft Protection with BBVA.
  4. It allows you to withdraw 6 times a day.
  5. The overdraft protection fee is $12 per transfer.

Chase Bank

Reliable and affordable, Chase Bank is another option that let you conveniently use its ATMs to overdraft.

  1. Chase Bank charges an overdraft fee of $34.
  2. It allows you to overdraft 3 times in a day.
  3. The maximum that the bank would charge you is $102 per day.
  4. The fee for overdraft protection is $5 per transfer.
  5. Chase Bank is considered to be one of the cheapest banks when you wish to get an overdraft.

Wells Fargo Bank

This bank is supposedly an expensive choice but thanks to Wells Fargo Overdraft Rewind feature, you do have some hope of eliminating the overdraft fee.

  1. Wells Fargo charges an overdraft fee of $35.
  2. The fee is compensated if you obtain a direct deposit within 24 hours.
  3. The bank lets you overdraft 3 times in a day.
  4. The maximum fee that it charges is up to $105 per day.
  5. The fee for overdraft protection is $12.50 per transfer.

US Bank

This one is a great choice especially if you have a Consumer Savings Account, Secondary Checking Account, or Money Market Account as that would mean there is no overdraft protection fee for you!

  1. US Bank charges an overdraft fee of $36.
  2. You are allowed to overdraft 4 times a day.
  3. The maximum that the bank would charge you is $144 per day.
  4. The overdraft protection fee is set at $12.50 per transfer.
  5. There is no fee if the overdrawn amount is equal to or less than $5.

Bank of America

Although Bank of America is not an affordable choice when it comes to overdrafting, it is still one of the few selective financial institute that allows users to take out cash from the account with $0 balance.

  1. The bank lets you overdraft with a fee of $35.
  2. You can overdraft up to 4 times in a day.
  3. The maximum that the bank of America charges you is $140 per day.
  4. The overdraft protection fee is $12.00 per transfer.
  5. It currently does not offer any plan which could be used to waive off the fee.

Fifth Third Bank

Fifth Third Bank has considerable overdraft fee but it is waived off for those with the bank’s checking account, Enhanced checked account-holders, and Preferred checking account-holders.

  1. This bank charges overdraft fee of $37.
  2. You can withdraw up to 5 times a day.
  3. The maximum fee charged by the bank is $185 per day.
  4. The overdraft protection fee is $12.00 per transfer.
  5. The bank does not charge this fee if the overdrawn amount is less than $5.

TD Bank

TD bank offers one of the best rates when it comes to overdraft protection fee. In fact, it is cheapest choice particularly in this regards.

  1. This bank charges an overdraft fee of $35.
  2. The fee is only applicable if the overdrawn amount is more than $5.
  3. You can withdraw 5 time a day.
  4. The maximum fee TD bank charges you is $175 per day.
  5. The overdraft protection fee is $3 per day.

SunTrust Bank

SunTrust Bank also has a feature similar to Wells Fargo that let users surpass overdraft fee by making a timely direct deposit.

  1. The bank charges an overdraft fee of $36.
  2. You are allowed to overdraft 6 times per day.
  3. The maximum that SunTrust would charge you in a day is $216.
  4. The fee for overdraft protection is $12.50 per transfer.
  5. The fee can be waived off if you make a direct deposit to your account on the same business day by 9 p.m.

Regions Bank

Region Banks has counted number of perks when it comes to withdrawing extra from your account.

  1. This bank charges an overdraft fee of $36.
  2. You can withdraw 5 time a day.
  3. The maximum fee the bank charges you is $180 per day.
  4. The overdraft protection fee is variable.
  5. The bank currently does not have any program that lets you waive off this fee.

The Huntington Bank

The unique think about this bank is that it offers a grace period of 24 hours in which no overdraft fee is charged if you pay back the withdrawn amount.

  1. This bank charges an overdraft fee of $36.
  2. The fee is only applicable if the overdrawn amount is more than $50.
  3. You can withdraw 4 time a day.
  4. The maximum fee the bank charges you is $144 per day.
  5. There is no overdraft protection fee!

Financial Institutions and Their Overdraft Amount Limits + Fees

There is no set limit or fee on the overdraft as it varies from one bank to another. The only sure way to know is to visit their official website and go through the terms and conditions.

  • Some financial institutions even tailor the exact terms according to the individual’s needs when they opt for overdraft protection.

Generally, people with low credit score may not be able to avail higher overdraft limits. They can, at maximum, qualify for up to $300. On the other hand, people with higher credit score can get overdraft as high as $1000.

Attention! Exact overdraft limit is set after the paperwork is complete. There is no way to know the amount before finalizing with the institute.

Additionally, sometimes overdrafting even a small amount of money can result in high fees. You can end up paying a lot if you are not careful at the time of finalizing the agreement.

  • Typically, overdraft fees can be as high as $30 or even more. Obviously, such charges are not suitable when you wish to take out a small amount only.

There has been a general increase of $10 in the overdraft fee over 15 year period. In fact, the charges are expected to sore even further. This is a major reason why you should consider avoiding overdraft altogether.

Can You Overdraft With a Negative Balance?

There are so many users wondering if they can use the ATM to take out funds that aren’t even present in the account. Well, the answer is simple!

As long as you have overdraft protection, you can use the debit card at an ATM to withdraw cash that exceeds your balance.

  • Keep in mind that there is no form of overdraft that does not come with an extra fee. The exact amount can vary from one account to another.

Things To Consider When Using ATMs That Let Your Overdraft

Overdrafting is a desperate move that can result in more financial burden than you think. Luckily, there are some other options that you can consider before jumping in.

For example, there are some amazing $50 instant loan apps that let you borrow money. Consequently, you can avoid paying extra dollars as overdraft fee by using this method.

What if borrowing the money isn’t an option and you have to overdraft?

Then make it your first priority to pay off the overdraft fee so that it does not pull down your credit score.

Extra Reading

Overdrafting With a Debit Card

It is one and the same thing to take about ATMs that let you overdraft or overdrafting with a debit card.

  • Similar to ATM overdrafts, the amount that you can take of the account as well as the fees would depend on the associated bank.

Moreover, the bank would still expect you to pay back the amount timely. Otherwise, the withdrawal can result in penalty fees or higher interest.

Overdrafting With a Credit Card

Yes, credit cards do allow for overdraft but it has to be one of the most expensive moves you can make.

We would never suggest readers to go for credit card overdraft. That is because, such withdrawals on credit cards can cost 10% more than regular overdrafts or purchases.

  • Credit cards often do not charge overdraft fee but the interest rates can be outrageously high.

Affect of an Overdraft On Your Credit Score

In a nutshell, overdraft does impact your credit score but it depends on a number of things.

Debit card overdraft typically does not pull down your credit score. However, if you take too long to pay back the amount, it would eventually be problematic for your score.

Alternatively, credit card overdrafting is viewed in a different manner and it can have even more serious consequences for your credit score.

Learn To Avoid Overdraft Using These Tips

If you wish t avoid overdrafting altogether, the best way is to not opt for overdraft protection.

  • When you don’t have overdraft protection, the bank will deny any future transactions in which you are taking out money more than what is in your account.

You can also choose to link the overdraft to another account. This would help you by incurring smaller amount of fee.

Other tips to keep in mind when learning how to avoid overdraft include:

  1. Do not opt for overdraft with bank account that charge high fees.
  2. Be sure of the balance that you have in your account before you withdraw at an ATM.
  3. Turn on notifications that keep you informed about a threshold amount in your account.
  4. Keep a separate savings account so you have some extra funds in time of need.
  5. Pre-plan your monthly expenditures and budget accordingly.

You can also opt for a low interest credit card instead of overdrafting at am ATM. This is a cost-effective alternative as you can pay off the balance even before you incur any interest.

ATMs That Let You Overdraft – Alternatives

Overdrafting may not always seem like a good idea. For example, there is no point in paying more than $30 overdraft fee when you just need to borrow a small amount.

In this case, it is better to look into money loan apps as alternative to overdrafting using ATM. There are some applications that take less than 5 minutes to sign-up and allow for instant loan on easy terms. Here are a few names that you might be interested in.

  • Chime

Chime online account lets you borrow money using its Spot Me feature. You can loan up to $100 without any interest!

Chime is famous among other reliable online banks with checking account. If you are a legal resident in the US and above age of 18, you can open an account here without any issues.

  • PockBox

You can use PockBox app to top up your checking account by applying for an instant loan. It allows you to borrow up to $2,500!

The process can be completed online. The app works by connecting you to a suitable lender and getting you an approval within minutes.

The Bottom Line

So now you know more about ATMs that let you overdraft and how you can complete the procedure. Moreover, you can use debit cards and credit cards as well.

  • Regardless of how you choose to overdraft, keep in mind the fees and limits to avoid any inconvenient in the future.

if the fees scare you, there is no harm in exploring alternatives. Hopefully, you will be able to find the right kind of financial help!

Frequently Asked Questions About ATMs That Let You Overdraft

Does my ATM allow overdraft?

You can opt for overdraft protection and use the ATM to take out extra cash with help of a debit card. However, it depends which bank account you have. If you don’t have overdraft protection, you can opt for overdraft.

How much can I overdraft from my checking account?

The overdraft limit can range from $100 to $1000. The exact amount depends on a number of factors. For example, some institutes generally allow lower overdraft limit whereas others only increase the limit when you have a good credit score.

What banks let you overdraft?

In the list of banks that let you overdraft, some prominent names include SunTrust, BBVA, Regions Bank, Bank of America, and many more. The daily overdraft limit in these institutions can range from $200 to $300 depending on your credit score.