U.S. Bank Overdraft Fees – Policy and How to Avoid Them
An overdraft occurs when you charge a debit to your account and you don’t have sufficient funds to cover it. At US Bank, there are different types of overdraft protection that can cover your shortfall until you deposit sufficient funds in your bank account.
However, US Bank will charge a fee each time you overdraw your account, and the bank will not necessarily cover your overdraft. Read on to find out exactly what type of overdraft protection US Bank offers and decide what’s best for your financial situation.
Types of bank overdraft protection in the United States
Now that you no longer ask yourself “What is an overdraft?” it’s time to get into the details. US Bank offers two types of overdraft protection: standard overdraft coverage and its exclusive overdraft protection. Whichever one you choose, you will be charged an overdraft transfer fee.
Standard overdraft coverage comes with your US Bank checking account and allows the bank to pay, at its discretion, checks, automatic bill payments, and recurring debit transactions that result in an overdraft. However, if you have standard overdraft coverage, US Bank will not pay for ATM transactions and daily debit card transactions that trigger overdrafts.
Overdraft protection allows you to link your checking account to your savings account, line of credit or credit card account. US Bank will use the money in these accounts to cover any type of overdraft you incur, including ATM transactions and daily debits.
US bank overdraft fees
The bank overdraft fee in the United States is $36 per item. If you go over your account by $5 or less, US Bank will not charge you an overdraft fee. However, for overdrafts of $5.01 and above, you will be charged $36 for each instance, up to four times per day. In theory, you could therefore incur up to $144 in overdraft fees each day. In addition to these standard fees, US Bank charges an additional $25 per week if your available balance remains below $0, starting on the eighth calendar day.
|How to Avoid U.S. Bank Overdraft Fees|
|US bank overdraft fees||$36|
|Maximum charges per day||4|
|Maximum charges per day||$144|
|Fees for each weekly account balance remain under $0||$25|
How to Avoid U.S. Bank Overdraft Fees
U.S. bank overdraft protection can prevent your checks from bouncing, but it’s an expensive safeguard to rely heavily on. Obviously, the best way to avoid overdraft fees is to make sure you always have a sufficient balance in your checking account.
US Bank lets you set up online account alerts that can help prevent overdrafts by notifying you when your balance reaches a certain level, for example. You can also create an emergency fund that serves as a backup account in case your main checking account runs out and heads into an overdrawn bank account.
How to get overdraft fee waiver
If you incur overdraft fees, you can try to have them waived. Your best bet is if you’re a long-time customer of the bank and don’t have an overdraft history on your account. Contact your local bank – in person might be the most effective – and politely ask the teller to waive the fee.
Check your US bank account
The best way to avoid U.S. bank overdraft fees is to keep an eye on your account and make sure you have a cushion for unexpected or forgotten debits. Sign up for US Bank Alerts to receive free account status notifications. Finally, don’t be afraid to ask for a fee waiver if you rarely overdraw — you’ve got nothing to lose and you’ll probably get it.
Information is accurate as of January 14, 2022.