Updated on July 22, 2022
Having a back-up strategy to borrow money like banks that allow overdrafts and charge minimal fees is important because not all financial situations can wait until payday.
What Will We Talk About Here?
It’s important to know which banks allow you to get overdrawn in order to make a wise option.
If you check your expenditures and set up text alerts from the bank, you can avoid overdraft fees.
It’s also possible to get money quickly with apps like Moneylion and PockBox, as well as Dave and Earnin.
The List Goes On…
Banks That Allow Overdrafts – 13 Top Picks!
Debit cards with the option to withdraw additional funds are currently available from nearly all banks. Clients can rest assured that their transactions will not be rejected if necessary because of this.
However, these services aren’t free; a single overdraft might cost as much as $35.
Fortunately, there are “more merciful banks” that charge less or perhaps do not charge the fee at all. Listed here are a few names you should be familiar with:
Chime
You may use SpotMe to borrow money, deposit checks using your mobile device, and get a FREE overdraft with this online bank.
Overdraft fees are not charged by Chime!
A $100 overdraft on a debit card is free of charge.
The entire application can be completed in as little as two minutes.
Chime does not let withdrawals of more than $100 in additional monies. In this case, the transaction would be rejected by the system.
In addition, there are a number of loans that connect with Chime in order to get you a quick cash loan.
BBVA
One of the top Chexsystem-free online banks, BBVA is a great option if you want to overdraft from your account.
Overdraft fees at BBVA might reach $38.
Depending on the location, this fee may differ.
It’s also possible to withdraw cash from your line of credit.
BBVA allows customers to go above their credit limit at an ATM, however there may be fees associated with it.
It’s one of the few financial institutions that would open a checking account for someone with a less-than-perfect credit history.
Capital One
Capital One lets you overdraw, but it also gives you options for reducing the fees you’ll pay as a result of doing so.
Capital One 360 Savings can be linked to your checking account to automatically transfer funds from the savings account in the event of an emergency.
Moreover, you can utilize your credit line from Capital One credit cards.
In the event of an unintentional overdraft, the bank will alert you. Cancellation of the transaction is at your discretion.
Alternatively, Capital One may impose a $35 overdraft fee.
Unless you go above your limit by more than $5, there is no cost.
Wells Fargo
In order to withdraw money from your Wells Fargo checking account, you have the option of using your ATM card, debit card, or check.
Overdraft fees are $35 every $35 of credit.
If your account is overdrawn for a long period of time, it does not levy a recurring overdraft fee.
The fee may be returned if you pay the debit in full and on time.
Using your Wells Fargo credit card to avoid overdraft fees is a simple and convenient way to save money.
You can also use an ATM to overdraw your account.
Chase
Furthermore, Chase provides consumers with a safe checking account that allows them to go over their budget.
The overdraft is free of charge at the bank.
However, its bank account charges a monthly cost of $4.95.
Additionally, if you withdraw more than $50, you may be subject to additional fees.
Overdraft charges of $34 are also available for Chase debit cards.
Using the Chase mobile app, you can turn on overdraft protection.
Bank of America
In addition to Bank of America, there is the option of being overdrawn. However, because of the higher fees and fewer flexible terms, it is a less popular choice among consumers.
As a standard, it imposes a $35 overdraft penalty.
As long as the overdraft amount is less than $1, the fee does not apply.
A total of three overdrafts are permitted each day.
Overdrafts can be authorized at the bank or through an app.
If you return the money by the end of the business day, the cost is waived.
Discover Bank
As a result of its flawless personal lending programs, Discover Bank is already well-known. Overdraft fees aren’t a problem for account holders at this bank, either!
Overdraft fees are not imposed on Discover deposit accounts.
Insufficient funds will not be charged.
A Discover credit card over-limit fee is incurred when you exceed your credit limit.
The maximum overdraft amount is $1,000.
It is possible to withdraw the additional funds from an ATM or a debit card.
Citibank
However, Citibank’s overdraft policy doesn’t sound as welcoming as some other banking institutions’ policies.
For each overdraft, it imposes a fee of $34.
Four times in one day, you can overdraw.
In addition, if a monthly fee is deducted and the balance is negative, you will be charged an overdraft fee.
ATM overdrafts are not allowed by Citibank.
Point-of-sale transactions cannot be used to withdraw more monies.
PNC
Even if you have multiple PNC accounts, you can still choose for overdraft protection.
The normal overdraft cost for the bank is $36.
In the event of an overdraft, the bank charges up to $98.
Every day, you have the option of going overdrawn four times.
Failure to repay the loan within five days will result in a cost of $7 each day, up to a maximum of $98.
If you don’t want to be covered, you can decline the offer.
SunTrust Bank
Extra money can be cashed out at banking institutions with simple terms.
The normal overdraft cost for the bank is $36.
6 overdrafts per day are allowed.
If you deposit the monies during the business day, the cost will be waived.
Overdrafts of less than $5 are free.
Check and ACH transactions are not covered by this policy.
Simple
Most of the essential services offered by Simple are free of charge.
Clients who wish to overspend their account are not charged any fees by this company.
You can utilize this function if you have a Simple Checking account.
In order to keep from going into debt, you should use this program to help you budget your money.
In addition to eliminating some of the most frequent banking fees, Simple eliminates a few others.
To open an account, there is no minimum balance requirement.
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 offers cost-effective and dependable overdraft protection.
It charges a $20 overdraft fee every transaction.
Compared to some of the other bank options, the fee is significantly lower.
Any transaction under $5 is free of charge.
To be eligible for an overdraft, you must have an active account for at least three months.
Activating overdraft protection can take up to three business days.
You might be interested in reading: ATMs That Let You Overdraft.
Extra Reading
How To Avoid Overdrafts In Future?
Even if your bank allows you to immediately go into an overdraft, you should know what you’re getting into.
Overdraft fees and high interest rates make it difficult to withdraw money from a bank account.
As a result, avoiding an overdraft should be a top goal. It’s possible to do so by using web programs that keep track of your spending.
Text alerts from your bank are also available. A notification would then be sent to you anytime your account balance falls below a predetermined amount.
Automated payments can frequently result in overdrafts that you are unaware of. Keep an eye out for recurring charges on your account.
Alternative To Banks That Allow Overdrafts
You can think of an overdraft account as a last resort, but wouldn’t it be better to have less expensive options?
You’re looking for more affordable options? Then look no further!
PockBox
This tool’s primary goal is to help you connect consumers in need of a loan with lenders who are willing to lend them.
Amounts of up to $2,500 have already been lent to PockBox accountholders in only a few minutes. Simple and uncomplicated, there is no documentation or sign-up process to complicate things.
Moneylion
It’s a financial app that allows you to save, invest, and make money while also letting you borrow a little amount. It’s safe to say that Moneylion is a legitimate financial service provider that has helped thousands of account holders.
In addition, there are apps like Moneylion, which offer similar advantages and are really simple to sign up for.
Apps like Dave’s allow you to avoid overdraft fees by letting you loan out money until your next paycheck arrives. Up to $75 can be lent to Dave and repaid at the end of the month.
Also included are personal budgeting tools that can help you better manage your money.
Earnin
Earnin is a good option if you’re looking for a short-term loan. Using this app is easy and funds are deposited into your bank account directly.
You can withdraw $100 every day, or $500 per pay period, if you choose. When you next check your bank account, you’ll see the money disappear. If you want to see what else is out there, consider using an app like Earnin.
The Bottom Line
You must constantly keep in mind the additional costs of taking out additional cash because there are only a few banks that do not impose an overdraft fee.
As an alternative, you can look into using one of the rapid lending apps we discussed above. They’re a more cost-effective way to get some quick cash if you’re in a pinch.
Frequently Asked Questions About Banks That Allow Overdrafts
How soon can I use my overdraft?
Overdraft protection must be activated, which can take up to three business days. You’ll be able to use overdraft practically immediately after activating the service.
Which bank is the best choice for overdraft?
Banks like Chime, Simple, Chase, and Capital One are excellent options for anyone who need to use an overdraft.
Are there no fee overdraft banks?
Customers of Bank of America, JPMorgan Chase, and Wells Fargo are not charged any fees if their accounts go overdrawn. In some circumstances, monthly and maintenance fees may be waived.
Will I get charged daily for overdrafting my account?
Depending on the bank, you may be charged a daily fee if you overdraw your account. This charge could be as high as $10. In addition, you’ll be responsible for the money you borrowed plus interest.
