Navigating Overdraft Refunds: How to Get Refunded at Banks (2024)

Affiliate links for the products on this page are from partners that compensate us and terms apply to offers listed (see our advertiser disclosure with our list of partners for more details). However, our opinions are our own. See how we rate banking products to write unbiased product reviews.

• Some national banks charge up to $35 daily in overdraft fees.
• If you contact your bank within a day and have an acceptable reason, the fee may be refunded.
• If you're unable to get a refund, fix your account and see if your bank offers overdraft protection.

Still imposed by several of the best national banks like Chase and Bank of America, overdraft fees occur when your bank covers a purchase because you don't have enough money in your account.

Depending on where you bank, you might be able to receive a refund on your overdraft fee if you resolve the issue promptly and offer an acceptable reason for overdrawing your account.

Understanding overdraft fees

What triggers overdraft fees

A bank charges an overdraft fee when you try to make a purchase with a debit card and don't have enough money in your checking account to cover it. The bank will process the transaction anyway.

Many banks have a limit on how much you can overdraw — anywhere from $5 to $50 — before an overdraft fee kicks in.

How banks handle overdraft protection

Customers are often given the choice to opt in to overdraft protection, which authorizes the bank to process a purchase despite insufficient funds.

Some banks allow customers to link a savings account to their checking account, so any shortfall will be transferred from another account and avoid an overdraft fee. Banks may also allow you to link your credit card or offer an overdraft line of credit to cover an overdraft.

How to request an overdraft refund

As soon as you see an overdraft fee on your account, check your bank's website for instructions on requesting an overdraft fee waiver or refund. If there are no instructions online, call customer service, politely explain your situation, and be prepared to provide supporting documentation.

Business Insider keeps a list of the best banks for avoiding overdrafts — here's an overview of ten of the biggest banks' policies on overdraft fees and refunds:

• Bank of America: Bank of America doesn't have a specific policy for waiving overdraft fees. You'll have to contact customer support over the phone and see if you might be eligible for a refund.
• Chase Bank: With Chase Overdraft Assist, you won't have to pay an overdraft fee if you overdraw $50 or less, or if you put back money in your account within one business day. Chase Overdraft Assist is available with all checking accounts except Chase First Checking, Chase High School Checking, and Chase Secure Checking.
• Wells Fargo Bank: With Extra Day Grace Period, Wells Fargo will waive overdraft fees and non-sufficient funds fees if a direct deposit is made to your bank account by 11:59 p.m. EST the day after you took out money from your account. Let's say you have $100 in your account and take out $150. If you deposit your paycheck by the next day, Wells Fargo will not charge an overdraft fee.
• Citibank: Citibank doesn't charge overdraft fees.
• U.S. Bank: With U.S. Bank's Overdraft Fee Forgiven program, you can waive overdraft fees for balances overdrawn more than $50 if you make a qualifying deposit before 11 p.m. ET the same day you overdrafted.
• Truist Bank: Truist Bank has eliminated overdraft fees for the Truist Confidence Account and Truist One Checking.
• PNC Bank: PNC Bank's Extra Time feature allows you 24 hours to bring your account balance back to $0 or greater before charging an overdraft fee.
• TD Bank: The TD Bank's Overdraft Relief feature gives you until 11 p.m. ET the next business day to bring your account balance back to at least $0. If you do so, the bank will refund the overdraft fee to your checking account.
• Fifth Third Bank: Fifth Third Bank offers an Extra Time feature with the Fifth Third Bank Momentum Checking Account. If you deposit money back into your account before midnight ET on the following business day after your account is overdrawn, bringing the balance to at least $0, you won't have to pay an overdraft fee.
• Citizens Bank: All checking and money market accounts also come with "Citizens Peace of Mind." Peace of Mind will alert you when your account is overdrawn and refund you if you deposit money into your account by 10 p.m. ET the next business day. Bear in mind that if you transfer money or deposit a check from another bank through the Citizen's mobile app or ATM, you won't be reimbursed.
• Regions Bank: Regions Bank will not charge an overdraft fee if your account is overdrawn by $5 or less. If your account is overdrawn by more than $5, you have until 8 p.m. ET the next business day to replenish your account before incurring an overdraft fee.

Remember that your bank might be willing to waive an overdraft fee if it's your first time overdrawing or if you have a longstanding relationship.

What to do if you can't get your overdraft fees covered

Unfortunately, you might not always be able to avoid an overdraft fee. If you find yourself in this situation, here are a few steps to take so this won't negatively impact you in the future.

1. Fix the account as quickly as possible

Even if it might leave a sour taste in your mouth, paying the overdraft fee will be your best option. To fix it, you'll need to deposit enough money into your account that it becomes a positive balance again.

Overdraft fees may pile up if you don't replenish your account soon. If you avoid using your bank account, the problem will only get bigger. Some banks end up closing your bank account if your account is inactive or if you have significant overdraft fees.

According to the Consumer Financial Protection Bureau, consumer reporting agencies can report your closed bank account to other institutions if you decide to open another account in the future. A bank account history may impact you for up to seven years, so fixing your account as soon as possible is best.

2. Sign up for alerts

Some institutions send alerts when you have a low account balance. This may help with preventing future overdraft charges because you can transfer more money to your account if you know you have upcoming payments.

PNC Bank, Bank of America, and Chase email and text alerts to notify you if your account balance falls under a certain amount or if you make a large transaction.

3. Get free overdraft protection

Some institutions also offer free overdraft protection. With free overdraft protection, you won't have to pay an overdraft fee or a fee to transfer money from another bank account to cover overdrawn amounts.

Institutions are required to list these fees in a Schedule of Fees document, so check online or call customer service.

4. Stay up to date on your account balance

Once you've deposited money into your account and paid off your overdraft fee, maintain your account balance by reviewing your bank statement routinely.

Find a timeframe that works for you — weekly, twice-monthly, or monthly — and set a reminder so you don't forget.

5. Consider switching banks if you're still struggling

If you're still having difficulty managing your account, it might not be the best account for you. You'll want to consider switching banks to one more suited to your needs.

Your rights as a consumer

According to a statement by the Consumer Financial Protection Bureau (CFPB), banks have relied on overdraft fees and non-sufficient funds fees as a form of revenue in the last few years.

The CFPB has proposed a rule to limit overdraft fees by setting a benchmark fee, which could be as low as $3, $6, $7, or $14. If adopted, the rule could take effect in October 2025.

In the meantime, you have the option of submitting a complaint if you have a concern about how your bank charges fees. When choosing a bank, consider online banks and credit unions that either have free overdraft protection or don't charge any overdraft fees.

Overdraft refund FAQs