Finance

13 Banks That Allow Overdrafts and What You Need To Know About Fees

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There are some financial emergencies that don’t wait till payday and that is why you need to be aware of back-up plans for borrowing cash like banks that allow overdrafts and charge minimal fee for it!

What Will We Talk About Here?
1. Chime bank, Simple, Chase, and Capital One bank are some of the finest choices in the list of banks that let you overdrafts.
2. You can avoid overdrafts by tracking your spending and turning on text alerts from the bank.
3. Alternatives, loan apps like Moneylion, PockBox, Dave, and Earnin are cheaper ways to access instant funds if needed.


…and Much More!

Banks That Allow Overdrafts – 13 Top Picks!

Most banks now offer overdraft coverage or debit cards that let you take out extra funds. This is to provide a sense of security to clients that their transactions won’t be denied in times of need.

  • However, such services don’t come free of cost and you may be charged as high as $35 for a single overdraft.

Luckily, there are some “more forgiving banks” that charge less or even waive off the fee completely. Here are some names that you should know about.

Chime

It is an online bank that offers a list of benefits like SpotMe feature for borrowing money, mobile check deposits, and FREE overdraft.

  • Chime charges no overdraft fee!
  • The debit card overdrafts for up to $100 are free of cost.
  • The application process can be easily completed in 2 minutes.
  • Chime does not allow you to take out extra funds more than $100. The transaction would be automatically declined.
  • Moreover, there are many loans that work with Chime to help you cash loan quickly.

BBVA

Besides being one of the best online bank that does not rely on Chexsystems, BBVA is an ideal place to look into when you wish to overdraft from your account.

Capital One

Capital One allows you to overdraft but at the same time, it offers a number of ways in which the clients can minimize the fee associated with the process.

  • You can link your checking account with Capital One 360 Savings account to automatically transfer funds from the savings in times of need.
  • Moreover, you can utilize your credit line from Capital One credit cards.
  • The bank also notifies you if you are making an accidental overdraft. You can choose to decline the transaction.
  • Otherwise, Capital One may charge $35 for an overdraft.
  • There is no fee unless you overdraft more than $5.

Wells Fargo

You can take out funds from your Wells Fargo checking account, ATM, debit card or through check.

  • Accountholders need to pay $35 for the overdraft.
  • It does not charge continuous overdraft fee if your account is overdrawn for many days.
  • If you cover the debit on time, the fee may be refunded.
  • You can link Wells Fargo credit card to account to avoid overdraft fee.
  • You can overdraft via ATM as well.

Chase

Besides offering reliable credit cards, Chase has a secure checking account that lets customers overdraft.

  • The bank does not charge any fee for the overdraft.
  • However, you have to watch out for monthly fee of $4.95 for its checking account.
  • Moreover, there may be some charges if you take out more than $50.
  • You can also overdraft Chase debit card for a fee of $34.
  • You can activate overdraft protection via Chase mobile app.

Bank of America

Bank of America is another option that allows accountholders to overdraft. However, it charges considerable fee with less flexible terms thereby encouraging users to look into alternatives.

  • It charges a standard overdraft fee of $35.
  • The fee does not apply if the overdraft is less than $1 which is hardly ever the case.
  • You are allowed a maximum of 3 overdrafts per day.
  • You can authorize overdraft at bank or via app.
  • The fee is waived off if you deposit money back by the end of the same business day.

Discover Bank

Discover bank is already in the limelight for its impeccable personal loan plans. On top of that, it allows its accountholders to go for overdraft without any additional charges!

  • Discover deposit account let you overdraft without any charges.
  • There are also no fee for insufficient funds either.
  • Overdrafting you Discover credit card does carry over-limit fee.
  • The overdraft limit is up to $1000.
  • You can take out the extra funds through the ATM or debit card.

Citibank

Citibank is famous for its reward-worthy credit card but, the overdraft that it allows does not sound as friendly as some other financial institutions.

  • It charges a fee of $34 per overdraft.
  • You can overdraft 4 times in a single day.
  • Moreover, you will be charged the overdraft fee if a monthly charge is deducted resulting in negative balance.
  • Citibank does not allows overdrafts at ATMs.
  • You can also not cash extra funds at point-of-sale transactions.

PNC

PNC lets you opt for overdraft coverage at your own discretion and you can do even if you have multiple PNC accounts.

  • The bank charges a standard overdraft fee of $36.
  • It charges a maximum of $98 for the overdrafts.
  • You can overdraft 4 times a day.
  • If you do not repay the amount within 5 days, you will be charged an additional fee of $7 per ever day up to $98.
  • You can also opt out of the coverage, if needed.

SunTrust Bank

The financial institutions lets you cash extra funds with user-friendly terms.

  • The bank charges a standard overdraft fee of $36.
  • You can overdraft 6 times in day.
  • The fee will be waived off if you deposit the funds within the business day.
  • There is no fee for overdraft less than $5.
  • The coverage does not apply to check transactions or ACH transactions.

Simple

Simple is famous for making most of its essential services completely free of cost.

  • It does not charge any fee to clients who choose to overdraft their account.
  • Simple Checking accountholders can make use of Safe-To-Spend feature.
  • This tool is designed to help you plan the expenditure to avoid overdrafts.
  • Simple also eliminates some of the other common banking fees.
  • There is no minimum balance requirement to open an account.

Fifth Third Bank

You can authorize overdraft coverage with Fifth Third Bank by contacting their customer support service or debit card enrollment center.

  • The bank may charge up to $37 per overdraft.
  • It charges the fee for a maximum of 5 days after you have taken out the funds.
  • The overdrafts are allowed at ATMs and via debit card.
  • Without overdraft coverage, your transaction will be turned down.
  • There is no fee if the overdraft is less than $5.

Navy Federal Credit Union

The credit union provides reliable overdraft protection with affordable fees.

  • It charges a fee of $20 per overdraft.
  • The fee is considerably less as compared to some other bank options in the list.
  • There is no fee on transaction that is less than $5.
  • You need to have an active account for up to 3 months to avail an overdraft.
  • It may take up to 3 days to enable your overdraft protection.

You might be interested in reading: ATMs That Let You Overdraft.

Extra Reading

How To Avoid Overdrafts In Future?

Although there are banks that let you overdraft right away, you need to be aware of what you are getting into.

  • High overdraft charges and peak interest rates don’t really leave withdrawing extra cash from bank account as an ideal option.

Consequently, it should be a priority to avoid an overdraft whenever possible. You can do so by utilizing online tools that help you keep track of your spending.

You can also sign up from text alerts from your bank . In this way, you would be notified whenever the funds in your account fall below a certain threshold.

Note! Automated payments can often result in overdraft when you are not even aware. Be careful about monthly fees that are deducted from your account.

Alternative To Banks That Allow Overdrafts

It is okay to think of overdraft as a last resort but with hefty fees that bank charge, won’t it be better to have less costly alternatives?

Well, here are the cheaper alternatives that you are looking for!

  • PockBox

The main aim of this tool is to connect you customers who are in need of loan to lenders who are willing to provide them.

So far, PockBox has successfully helped accountholders cash loan up to $2,500 in minutes. The process is simple and straightforward without any complication documentation or sign-up process.

  • Moneylion

It is a finance app that lets you borrow small amount of loan as well as save, invest, and earn. Moneylion is a legit platform that has been offering financial support to thousands of accountholders.

Moreover, you can look into apps like Moneylion that provide similar benefits and are extremely easy to sign up with.

  • Dave App

Dave and apps like Dave are brilliant tools that let you avoid overdraft by offer cash until payday. With Dave, you can borrow up to $75 and pay it back when you receive the monthly check.

Moreover, the app also offers personal budgeting tools to help you manage the finances better.

  • Earnin

Earnin is another reliable alternative when you are in need of loan. It is a unique app that is simple to use and deposits funds directly into your bank account.

You can take out $100 a day or up to $500 per paycheck period. The money will be deducted from your account on the next date. You can also look into apps like Earnin to explore more options.

The Bottom Line

Since the option of a bank with no overdraft fee is limited, you always have to keep in mind the surplus charges that taking out extra cash would bring.

Alternatively, you can explore instant loan apps like the ones we have discuss above. They are a cheaper solution to getting some cash immediately if needed.

Frequently Asked Questions About Banks That Allow Overdrafts

How soon can I use my overdraft?

You need to sign up for overdraft protection and that may take up to 3 business days. Once the service has been activated, you can opt for overdraft almost immediately if needed.

Which bank is the best choice for overdraft?

Chime bank, Simple, Chase, and Capital One bank are some of the finest choices in the list of banks that let you overdrafts.

Are there no fee overdraft banks?

Bank of America, Chase, and Wells Fargo also let accountholders overdraft without any fee. They do have some monthly and maintenance charges that can be waived off under special circumstances.

Will I get charged daily for overdrafting my account?

Some banks do charge per day when you overdraw from the account. This fee may be up to $10. On top of that, you need to pay the interest charges on the amount of money that you have taken out.