Citizens Bank allows overdrafts on most checking accounts, but only if you opt in to their overdraft service
Citizens Bank does not automatically cover overdrafts. You have to enroll in their Overdraft Service to let the bank pay transactions that would otherwise bounce. Without it, a transaction that exceeds your balance will be declined at the point of sale or ATM.
If you do enroll and overdraft your account, Citizens Bank will cover the transaction—but they charge a fee for each overdraft. The fee structure and limits vary depending on your account type and state, so you need to check your specific account agreement or call Citizens Bank directly at 1-800-922-9999 to learn what applies to you.
Overdraft protection is different from a linked savings account transfer. Some Citizens Bank customers can link a savings account to their checking account, and the bank will automatically move money over if the checking account goes negative. That option does not charge an overdraft fee, though it does require you to have funds available in the linked account.
Key Takeaways
- Citizens Bank requires you to opt into Overdraft Service; it is not automatic, and without it transactions will be declined if your balance is too low.
- Each overdraft transaction triggers a fee, and the amount varies by account type and state—check your account agreement or call the bank to confirm your fee.
- Linking a savings account to your checking account can prevent overdrafts without fees, but only if you have money in the savings account to transfer.
- Overdraft fees can stack quickly if multiple transactions post on the same day, so monitoring your balance is the most reliable way to avoid them.
How to enroll in Citizens Bank Overdraft Service
You can enroll in Overdraft Service through Citizens Bank's online banking portal, mobile app, or by visiting a branch in person. Log into your account, look for settings related to overdraft protection or account services, and follow the prompts to turn it on. If you cannot find it online, call 1-800-922-9999 and ask a representative to enroll you over the phone.
Enrollment is immediate, and the service will be active on your next transaction. Once enrolled, any transaction that would overdraft your account will be covered by the bank instead of being declined—but you will owe the overdraft fee plus the amount you spent.
Overdraft fees and how they accumulate
Citizens Bank charges a fee each time a transaction overdrafts your account. The fee amount depends on your account type and state; some accounts charge $25 to $35 per overdraft, while others may differ. You can have multiple overdraft fees on the same day if several transactions post and each one pushes your balance further negative.
For example, if your balance is $50 and three debit card transactions of $30 each post on the same day, all three will overdraft your account, and you will owe three separate overdraft fees plus the $40 you overspent. This is why monitoring your balance throughout the day matters—transactions do not always post in the order you made them.
Citizens Bank also charges a fee if your account stays negative for several days. Check your account agreement for the exact threshold, but most banks charge a daily or weekly fee once you fall below zero by a certain amount or for a certain number of days.
What happens if you do not pay back an overdraft
If you overdraft your account and do not deposit money to cover it, the negative balance will grow as fees accumulate. Citizens Bank will attempt to collect the debt through your account—any deposits you make will go toward paying off the overdraft and fees before you can use the money.
If the overdraft remains unpaid for an extended period (typically 30 to 60 days, depending on the bank's policy), Citizens Bank may close your account and report the debt to a collection agency. A collection account will damage your credit score and may make it harder to open a bank account elsewhere.
The bank may also pursue legal action to recover the debt, though this is less common for smaller overdraft amounts. If you find yourself unable to pay back an overdraft, contact Citizens Bank immediately to discuss a repayment plan or other options.
Opting out of Overdraft Service
You can turn off Overdraft Service at any time through your online account, the mobile app, or by calling the bank. Once you opt out, transactions that exceed your balance will be declined instead of covered. This prevents overdraft fees but means your card or check may be rejected at checkout.
If you have an existing overdraft balance when you opt out, you still owe that money. Turning off the service only stops new overdrafts from occurring; it does not erase what you already owe.
Alternatives to overdraft protection
Linking a savings account to your checking account is the most common alternative. If your checking account balance drops below zero, Citizens Bank will automatically transfer money from the linked savings account to cover the transaction. This avoids overdraft fees entirely, but you need to have money in savings and the transfer may take a few hours to process.
Setting up account alerts is another way to prevent overdrafts. Most online banking platforms let you receive a text or email when your balance falls below a certain amount—$100, $50, or whatever threshold you choose. This gives you time to deposit money or adjust your spending before you actually overdraft.
Some people also use budgeting apps or spreadsheets to track spending in real time, which helps catch overspending before it becomes an overdraft. The key is knowing your balance and monitoring it regularly, especially on days when you know multiple transactions will post.
Overdraft fees and federal regulations
The Consumer Financial Protection Bureau (CFPB) regulates overdraft practices, and banks must disclose their overdraft policies clearly. Citizens Bank is required to tell you the fee amount, how many overdrafts are allowed per day, and what happens if you stay negative for too long. You should receive this information when you open your account and can request it at any time.
Federal law does not cap overdraft fees, so banks can charge what they want. However, the CFPB has taken action against banks that charge excessive fees or do not clearly disclose their policies. If you believe Citizens Bank's overdraft fees are unfair or were not properly disclosed, you can file a complaint with the CFPB at consumerfinance.gov.
Frequently Asked Questions
Can I overdraft my Citizens Bank account without opting in?
No. Citizens Bank does not cover overdrafts unless you enroll in their Overdraft Service. Without it, transactions that exceed your balance will be declined. You have to actively turn on the service through online banking, the app, or by calling the bank.
How much does each overdraft cost at Citizens Bank?
The fee varies by account type and state. Most Citizens Bank accounts charge between $25 and $35 per overdraft, but you should check your account agreement or call 1-800-922-9999 to confirm the exact amount for your account. Each transaction that overdrafts your account triggers a separate fee.
What if I link a savings account instead of using overdraft protection?
Linking a savings account lets Citizens Bank automatically transfer money to your checking account if it goes negative. This avoids overdraft fees, but you need money in the savings account and the transfer may take a few hours. It is a free alternative to Overdraft Service.
Will an overdraft hurt my credit score?
An overdraft itself does not appear on your credit report. However, if the overdraft goes unpaid for 30 to 60 days and Citizens Bank sends it to a collection agency, that collection account will damage your credit score significantly. Paying back the overdraft quickly prevents this.
Can Citizens Bank close my account if I overdraft?
Yes. If you overdraft your account and do not pay it back within 30 to 60 days, Citizens Bank may close your account and report the debt to a collection agency. Paying back the overdraft as soon as possible prevents account closure and protects your credit.