Banking and Finance

Overdraft Fees Hit Record High: How to Avoid?

July 27, 2021

According to one study from Bankrate, average overdraft fees have increased a whole $12 since 1998. What are people paying on average for overdraft fees? A whopping $33.47. In the last year alone, fees have risen nearly 15 cents, which can add up quickly to unnecessary change spent on something you should have protection for.

Why Are Overdraft Fees Increasing?

Simply put, banks have to also cover their costs and physical banks have quite a few overhead costs to cover even amid a failing economy. They charge overdraft fees as a way to earn more money or to simply cover the costs of a failed transaction. However, this doesn’t account for the way in which they charge customers.

You’ll note that most traditional banks charging overdraft fees will do so in a way that’s compound in nature. Each new transaction that pushes someone further into over-drafting their account incurs a new charge. And, certain banks will sometimes reorder a transaction, knowing full well that it will fail, just to charge more fees. How? Sometimes, they’ll process transactions from highest to lowest amount, pushing an account into overdraft faster since the first charges processed are the largest.

What Are Common Banks’ Overdraft Fees?

While most banks offer overdraft protection, it’s not often a common feature for their most basic accounts. And, every bank has a different overdraft fee, varying from $34 to $36 per transaction, and different banks have a different daily maximum amount of overdraft fees charged. The Chase overdraft fee and the Bank of America overdraft fee are the lowest at $34, while US Bank is the highest at $36 per transaction.

There are many ways to avoid being charged overdraft fees, such as setting up notifications and having an overdraft protection plan, etc. However, there’s no necessity to panic while getting charged on overdraft. Here’s a list of step-by-step guides on how you get your overdraft fee waived from banks in the US, such as Chase.

How to Waive Overdraft Fees

The Increase of Overdraft Fees Over the Years | Cheese Debit Card

If you’ve been charged an overdraft fee at a major bank, don’t panic. First, get the information you need in order to prove that the fee was a mistake or an accident. Then, prepare to call the bank and follow these steps:

  • Have your account details on hand and access to your personal information.
  • Be prepared to plead your case with accurate information; explain why you didn’t have enough funds in your account and be sure to tell them that you’ve since deposited money into the account.
  • Be polite but be firm.
  • Tell them how long you’ve been a customer and that you’d really enjoy staying with the bank, but that you’re not sure about the price of the overdraft fees.

Didn’t work? Check out our helpful guides to waiving overdraft fees at some of the most popular banks in the country.

How to Waive the Chase Overdraft Fee

Chase Overdraft Fee Amount: $34

Chase Overdraft Fee Daily Maximum: $102, 3 transactions

Click to see How to Get Your Chase Overdraft Fee Waived.

How to Waive the Bank of America Overdraft Fee

BoA Overdraft Fee Amount: $35

BoA Overdraft Fee Daily Maximum: $140, 4 transactions

Click to see How to Get Your BoA Bank of America Overdraft Fee Waived.

How to Waive the Wells Fargo Overdraft Fee

Wells Fargo Overdraft Fee Amount: $35

Wells Fargo Overdraft Fee Daily Maximum: $105, 3 transactions

Click to see How to Get Your Wells Fargo Overdraft Fee Waived.

How to Waive the PNC Bank Overdraft Fee

PNC Bank Overdraft Fee Amount: $36

PNC Bank Overdraft Fee Daily Maximum: $144, 4 transactions

Click to see How to Get Your PNC Bank Overdraft Fee Waived.

How to Waive the Citizens Bank Overdraft Fee

Citizens Bank Overdraft Fee Amount: $35

Citizens Bank Overdraft Fee Daily Maximum: $245, 7 transactions

Click to see How to Get Your Citizens Bank Overdraft Fee Waived.

How to Waive the TD Bank Overdraft Fee

TD Bank Overdraft Fee Amount: $35

TD Bank Overdraft Fee Daily Maximum: $175, 5 transactions

Click to see How to Get Your TD Bank Overdraft Fee Waived.

Get a Debit Card with No Overdraft Fees

If you’re tired of dealing with overdraft fees or simply don’t want to have to think about the issue at all, get a debit card with zero overdraft fees. Yes, they exist! The Cheese Debit Card not only comes with $0 in overdraft fees but is packed with these other powerful features, too:

❌ No Monthly Fee                                    🧀️ $5 cash bonus    

❌ No ATM Fee                                         🧀️ Up to 10% cashback with every purchase/transaction

❌ No Overdraft Fee                                  🧀️ Potential Double Cheese Cashback

❌ No Insufficient Fund Fee                       🧀️ Up to 3% Saving Bonus

❌ No Minimum Balance Requirement      🧀️ Early Paycheck

Interested in learning more? Sign up today.