Your bank will charge you an overdraft fee, usually $25 to $35 per transaction that pushes the account below zero

When you spend more money than you have in your checking account, the bank covers the difference temporarily. That coverage is not free. Most banks charge an overdraft fee each time a transaction goes through on a negative balance — meaning a single purchase can trigger multiple fees if several transactions post on the same day.

The fee amount varies by bank. Chase charges $35 per overdraft. Bank of America charges $35. Smaller regional banks may charge $25 to $30. Credit unions often charge less, sometimes $25 or nothing at all if you have overdraft protection linked to a savings account. The fee is separate from the amount you owe — if you overdraft by $5 and get charged $35, you now owe $40.

Some banks also charge a sustained overdraft fee if your account stays negative for several days. This is a second charge on top of the transaction fee, typically $5 to $10 per day, and it keeps accruing until you bring the balance positive again.

Key Takeaways

  • Overdraft fees are charged per transaction that posts while your account is negative, so multiple purchases on the same day can mean multiple fees.
  • Most major banks charge $25 to $35 per overdraft, plus an additional daily fee if the account stays negative for more than a few days.
  • You can opt out of overdraft coverage entirely, which means transactions will be declined instead of going through and triggering fees.
  • Paying back the negative balance does not erase the fees — you must pay both the overdraft amount and the fees charged.
  • Some banks offer overdraft protection by linking your checking account to a savings account or credit line, which covers the gap without a fee or with a smaller fee.

How overdraft fees stack up when multiple transactions post the same day

Banks do not charge one fee per day — they charge one fee per transaction. If you have $100 in your account and four different charges post (a coffee, a gas purchase, a grocery store transaction, and a subscription renewal), and those four charges total $150, you will be charged four overdraft fees, one for each transaction that went through negative.

The order matters because banks often process transactions in a specific sequence, not the order you made them. Many banks process larger transactions before smaller ones, or they process them in the order they received them from merchants. This means the order in which fees are charged may not match the order in which you made the purchases. Some banks let you see the order they use; others do not disclose it clearly.

If your account goes negative on a Monday and stays that way through Friday, you may also be charged a sustained overdraft fee each day — $5 to $10 per day depending on the bank. That daily fee is separate from the transaction fees. So a $50 overdraft that sits for five days could cost you $25 to $50 in daily fees alone, plus the original transaction fees.

Opting out of overdraft coverage stops fees but declines your transactions

You have the right to opt out of overdraft coverage. When you do, transactions that would overdraft your account are simply declined instead — like a debit card being rejected at the register. You pay nothing, but the transaction does not go through.

This prevents the fee spiral, but it also means your payment might fail at a critical moment. A declined debit card at the grocery store is inconvenient. A declined automatic bill payment could result in a late fee from the utility company or your landlord, which may be larger than the overdraft fee would have been.

To opt out, contact your bank directly — call the number on the back of your card or log into your online banking portal and look for overdraft settings. Some banks make this easy; others bury it in the account settings menu. Ask the bank to confirm the change in writing, because some banks have re-enrolled customers in overdraft coverage without clear notice.

Overdraft protection links your checking account to savings or a credit line

Overdraft protection is different from overdraft coverage. Instead of the bank lending you money and charging a fee, overdraft protection automatically transfers money from another account you own — usually a savings account — to cover the shortfall. Some banks also offer overdraft protection through a credit line or a line of credit attached to your checking account.

If you link your savings account to overdraft protection, the bank transfers just enough to cover the negative balance when a transaction would overdraft. You pay no fee, or a small fee ($1 to $5) depending on the bank. The money comes from your own savings, so you are not borrowing — you are just moving money between your accounts automatically.

Credit union members often have this option at no cost. Bank of America and Chase offer it, though they may charge a small fee per transfer. If you have a savings account with a decent balance, this is usually the cheapest way to avoid overdraft fees. The downside is that it can mask spending problems — you might not notice you are overdrafting regularly if the transfers happen silently.

Your bank reports overdrafts to ChexSystems, which affects future accounts

Repeated overdrafts get reported to ChexSystems, a banking history database that most banks check before opening a new account for you. If you have multiple overdrafts in a short period, banks see that as a sign of financial instability and may deny you a new account or require you to use a second-chance checking account with higher fees.

A single overdraft does not usually trigger a ChexSystems report. But if you overdraft three or more times in a year, or if you leave an account negative for an extended period, the bank may report it. The report stays on your ChexSystems file for five years.

This does not affect your credit score directly — ChexSystems is separate from credit bureaus like Equifax. But it does affect your ability to open a new checking account at a mainstream bank. If you are denied, you can request your ChexSystems report for free and dispute any errors.

Paying back the negative balance does not erase the fees

When you deposit money to cover an overdraft, the bank applies it first to the overdraft amount, then to the fees. If you overdraft by $50 and are charged $35 in fees, you need to deposit $85 to bring your account to zero. Depositing $50 leaves you $35 in the red.

Some banks will waive one or two overdraft fees if you call and ask, especially if you have been a customer for a long time or if this is your first overdraft. It is worth calling — the worst they can say is no. Be polite and explain that you made a mistake. Banks are more likely to waive fees for customers with good history than for repeat offenders.

If you cannot pay back the full amount immediately, the negative balance will continue to accrue daily fees until it is resolved. Some banks will eventually close your account and send the debt to a collection agency if the negative balance sits for 60 to 90 days.

Negative balances can lead to account closure and debt collection

If your account stays negative for 60 days or longer, most banks will close the account. They will apply any deposits you make to the negative balance first, then close the account once it reaches zero. After closure, if there is still an outstanding balance, the bank may send it to a debt collection agency.

A debt collection account on your record damages your credit score and can stay there for seven years. Collectors may call, email, or send letters demanding payment. You have rights under the Fair Debt Collection Practices Act — collectors cannot call before 8 a.m. or after 9 p.m., cannot harass you, and must stop calling if you send a written request.

If you receive a collection notice, respond in writing within 30 days if you dispute the debt. If you do not dispute it, the collector can sue you for the amount owed. A judgment against you can result in wage garnishment or bank account levies.

Frequently Asked Questions

Can a bank charge me overdraft fees if I did not authorize overdraft coverage?

Banks are required to get your permission to charge overdraft fees on debit card and ATM transactions. However, they can charge overdraft fees on checks and automatic bill payments without your permission. If you were charged fees without consent, contact the bank and ask them to reverse the charges. If they refuse, you can file a complaint with the Consumer Financial Protection Bureau.

How long does it take for overdraft fees to show up in my account?

Overdraft fees usually post within one to three business days of the transaction that caused the overdraft. Some banks post them immediately; others batch them and post them all at once at the end of the day. Check your account regularly so you know when fees have been charged and can plan your next deposit accordingly.

What is the difference between overdraft fees and NSF fees?

An overdraft fee is charged when the bank covers a transaction that would make your account negative. An NSF (non-sufficient funds) fee is charged when a transaction is declined because you do not have enough money. If you opt out of overdraft coverage, you will get NSF fees instead of overdraft fees.

Can I get overdraft fees refunded if I pay the balance back quickly?

Fees are not automatically refunded, but you can call your bank and ask. Banks sometimes waive one or two fees as a courtesy, especially if you have a good account history or if this is your first overdraft. Be specific about which fees you want waived and explain your situation. Getting fees waived is not may provide, but asking costs nothing.

Will overdrafting my checking account hurt my credit score?

A single overdraft does not appear on your credit report. However, if the overdraft goes to a collection agency, that collection account will damage your credit score and stay on your report for seven years. Overdrafts also get reported to ChexSystems, which affects your ability to open new bank accounts but does not affect your credit score directly.