TD Bank Overdraft Limits, Fees and Protection: How to Reverse Fees (2024)

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TD Bank is one of the most popular baking institutions in the United States (and Canada, though that’s not covered here). Customers must know the bank’s rules, regulations, and overdraft stipulations to avoid hefty surcharges and fees while using the ATM with their debit or credit card. By learning how to link with other bank accounts, utilize overdraft protection services, and connect with TD Bank customer service, account owners can safeguard their money.

FeeCostMaximum Overdrafts per DayMaximum Daily Cost
TD Bank Overdraft Fee$355$105
TD Bank Insufficient Funds Fee$353$105
TD Bank Linked Account Transfer Fee$253$75

The TD Bank overdraft fees cost $35 per overdraft and $35 per insufficient funds. Account owners can avoid overdraft fees by keeping an eye on their checkbook, paying with cash, using direct deposit, and linking the TD Bank account to another account to avoid running out of funds.

TD Bank Overdraft Limits, Fees and Protection: How to Reverse Fees (1)

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  • Get up to $200 whenever you need it.Access extra spending power instantly with no overdraft fees1
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Chime is a financial technology company, not a bank. Banking services and checking account provided by The Bancorp Bank, N.A. or Stride Bank N.A.; Members FDIC.

What We’ll Cover:

  • What is TD Bank’s Overdraft Policy?
  • How Much are TD Bank’s Overdraft Fees?
  • How Much Will TD Bank Let Me Overdraft at an ATM?
  • Does TD Bank Charge NSF Fees?
  • Can You Get a TD Bank Overdraft Fee Waived?
  • How to Avoid Overdraft Fees with TD Bank
  • Final thoughts and What To Do Next…

What is TD Bank’s Overdraft Policy?

TD Bank Overdraft Limits, Fees and Protection: How to Reverse Fees (2)

The Standard Overdraft Service by TD Bank prohibits card owners from being able to make debit card purchases if there are not enough funds. The standard policy is included in the account, but users can switch their account to a TD Debit Card Advance to still use their debit cards when there are insufficient funds.

TD Bank Allows Overdrafts on the Following Transactions, at Their Discretion:

  • Overdraw an account to $50 before an overdraft fee.
  • Customers who overdraw by more than $50 have 24 hours to avoid the overdraft fee.
  • Customers who cancel overdraft protection services.

TD Bank Allows Opt-in Overdrafts on the Following Transactions:

  • TD Debit Card Advance allows overdraft withdrawals at an ATM up to three times per day.
  • Savings Overdraft Protection connects linked accounts (i.e., Money Market or TD Savings) to allow a withdrawal at an ATM.

Account owners must know that the TD Debit Card Advance allows one-time debit card transactions even when there is not enough money in the account. If users choose this, there will be a $35 fee with each transaction that brings your account below $10.

Although there are overdraft fees, TD Bank does offer a range of services and bank accounts to avoid large fees, so keep reading to find out more.

Learn more about the TD Bank overdraft policy here.

How Much are TD Bank’s Overdraft Fees?

TD Bank Overdraft Limits, Fees and Protection: How to Reverse Fees (3)

TD Bank charges a $35 overdraft fee per transaction. However, there are various conditions that can alter the amount a person may have to pay.

There are no overdraft fees for transactions that overdraw your balance by $10 or less. If a person has only a small purchase that incurred a debt of less than $10, this does not elicit the $35 overdraft fee.

Overdraft Protection is one of the smartest choices for account owners who want to prevent Non-Sufficient Funds (NSF) charges and avoid non-sufficient funds fees. However, TD Bank overdraft protection options give individuals more leeway instead of having to pay heavy fees.

As a customer of TD Bank, you have two protection features and overdraft coverage that can help you avoid costly fees:

  • Monthly Plan — The first option for TD Bank customers is the Monthly Plan Overdraft Protection at $5 per month. This plan has a flat rate and covers overdraft fees, regardless of how many times per month you overdraw your account.
  • Pay-as-you-go Plan — The second type of overdraft protection for TD Bank customers is the pay-as-you-go option, which is just $5 per use.

*As a TD Bank customer, you will still have to pay the 21% interest rate for your Overdraft Protection plan.

The maximum number of overdraft fees per day is five. However, there are different charges and overdraft allowances based on the specific type of TD bank account you have.

  • TD Bank Checking allows up to 5 overdrafts per day at a $35 fee each.
  • TD Beyond Checking allows one overdraft per day at a $35 fee.
  • TD 60 Plus Beyond Checking allows one overdraft per day at a $35 fee.
  • TD Convenience Checking allows one overdraft per day at a $3 fee (or have the overdraft fee waived for 17- to 23-year-old account holders).
  • TD Private Tiered Checking prohibits overdrafts and waives the fee.

TD Bank states that members must pay overdrawn balances within 89 days. If you have Standard Overdraft coverage, the bank will decline your debit card if you do not have enough funds. However, if you wrote a check, paid a recurring bill, or enrolled in automatic payments, these will likely still go through with the $35 overdraft fee. Customers can cancel overdraft protection if they want to continue using their card or ATM without any restrictions.

TD Bank Overdraft Limits, Fees and Protection: How to Reverse Fees (4)

WAIT! High overdraft fees aren't the only way TD Bank is costing you money.

With inflation overheating, you've probably heard that interest rates are climbing sharply. That means that for the first time in years, it's a great time to shop around for a high interest savings account.

TD Bank savings accounts currently pay just 0.02% APY1 as of 11/22/2022. That means that if you have $2,500 in a savings account, you'd earn just $0.50 after one year! Move those hard-earned savings to an FDIC-insured bank paying 3.50% APY and you'd earn $87.49 after one year, and some banks now pay even higher rates!

Don't let your hard-earned savings sit there doing next to nothing. Check out the rates that you can earn at other banks:

How Much Will TD Bank Let Me Overdraft at an ATM?

Does TD Bank let you overdraw at an ATM?

If you are on the move and need to quickly get money to pay for something or attend cash-only premises, it can be helpful to know how TD Bank’s overdraft limits at an ATM. However, the answer depends on your account type and your Overdraft Protection plan.

To overdraw at an ATM to get instant cash, you must authorize TD Bank to charge your account even with insufficient funds. In this case, you will need to choose from one of the following settings:

  • TD Debit Card Advance — Overdraft withdrawals at an ATM up to three times per day, $35 overdraft fee.
  • Savings Overdraft Protection — Links to accounts (i.e., Money Market or TD Savings), $3 per service with a $35 overdraft fee.

Suppose you do not choose one of these two account options. In that case, TD Bank will give you the default setting of Standard Overdraft Protection, which prohibits users from being able to withdraw funds if there are not enough funds in the account.

However, if you allow TD Bank ATM overdrafts, this will cause the standard fees associated with overdrafts and low balances. This is capped at five withdrawals per day with a fee of $35 per withdrawal, which can lead to $175 in one day for immediate cash in hand.

To avoid overdraft fees, consider the following options:

  • Set up low balance alerts.
  • Open a TD Private Tiered Checking account and link a savings account.
  • Open a TD Beyond Checking account to reimburse your overdraft fees automatically.
  • Manage automatic payments to avoid missing recurring payments.
  • Track your spending by using the TD Bank Mobile App.

You can also cancel optional ATM overdrafts by doing the following:

  • Contact TD Bank to avoid allowing recurring payments when the bank balance is too low.
  • Add Savings Overdraft Protection to link other accounts to cover low balances.

Both of these options can start the process of an overdraft fee refund to your original account.

To speak to a TD Bank customer service rep and avoid overdraft charges, call or message online via the Contact Center.

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TD Bank Overdraft Limits, Fees and Protection: How to Reverse Fees (5)

Does TD Bank Charge NSF Fees?

Yes. But when does it happen?

If you are going to pay for a bigger purchase at a local store, such as a piece of furniture, TV, or expensive pair of shoes, you may not have enough money in your balance to cover the entire purchase. In this case, you will be charged for using your card when you don’t have ample funds to cover the purchase.

With TD Bank, the NSF fee is $35. If a customer overdraws their account by more than $50 within 24 hours, there is an option to “return” the overdraft fees once the funds in the account are restored.

TD Bank Overdraft Limits, Fees and Protection: How to Reverse Fees (6)

Can You Get a TD Bank Overdraft Fee Waived?

Are you curious if TD Bank waives overdraft fees? That would be nice, right? How can you overdraft at an ATM without any fees?

Unfortunately most financial institutions don’t make it easy to get a refund for the overdraft fee. But, the good news for customers is that it is possible — you need to know how to do it.

So, how can you get help as a TD Bank customer? The answer is simple — ask the bank’s reliable customer service.

If this is your first time overdrawing your account by mistake, you can call the TD Bank customer service phone number and ask them to waive the fee. Since it is your first time, there should be no problem returning the $35 to your account.

However, if you have overdrawn multiple times, getting a refund can be trickier. If the customer service representative notices a pattern, they may be less likely to return money to your account.

In that case, using the TD Beyond Checking allows customers to get some of their overdraft money back at the end of the year. This account reimburses the first two overdrafts per calendar year!

If you are confused, a quick call to contact TD Bank can show you the number of overdrafts you can have reimbursed per year quicker than you can say “TD Bank reverse my overdraft fees!”.

TD Bank Overdraft Limits, Fees and Protection: How to Reverse Fees (7)

How to Avoid Overdraft Fees with TD Bank

We understand that customers charged overdraft fees can be upset at the extra money coming out of their pocket. If you are already low on funds and charged for an overdraft, this makes matters even worse! Plus, the average overdraft fee in the United States is around $33 — a high surcharge for most account owners.

Let us see three strategies to avoid an overdraft fee with TD Bank.

Option #1: Use TD Bank Features

Link other accounts: The first option to avoid overdrafts with TD Bank is to link other accounts. You can easily use the TD Private Tiered Checking account linked to your savings account for money to be automatically transferred at times of low funds.

Use the TD Bank app: The other option is to set up alerts on your account with the TD Bank Mobile App to alert you every time you are below a certain amount. Overdrafts often occur because you do not know that you have a low balance, so using these tools can help you!

Link a personal credit line: The last way to use TD Bank’s features is to link a credit card with your direct debit account.

Option #2: Take Advantage of No-fee Overdraft Apps like Chime for $200 in fee-free overdrafts

TD Bank Overdraft Limits, Fees and Protection: How to Reverse Fees (8)

A bank’s overdraft tools will still keep customers happy at TD Bank. However, there are other alternatives to prevent overdrafts and extra fees at your local bank, such as fee-free overdraft apps like Chime’s SpotMe service.

You can easily enroll in this handy app to arrange a $200 direct deposit per month to avoid the $35 fee with TD Bank.

You’ve got your eye on a new pair of $150 shoes that you know will look great on you, but there’s only $50 in your account. Where most banks would approve the transaction and sting you with a $35 overdraft fee (turning your purchase into a $185 transaction), SpotMe approves the transaction with no fees attached. The negative amount will be balanced by your next deposit as long as your paycheck is regularly deposited into your account.

Don’t have time to sign up to SpotMe and need fast cash NOW? Read on for a quick and easy solution.

Sick of overdraft fees? Get fee-free overdrafts for up to $200 with Chime

Option #3: Use a Cash Advance App like PockBox to borrow up to $2,500 even if you have bad credit

There are numerous benefits for using cash advance apps to gain access to funds until more money is deposited into your account.

Using a cash advance app, like PockBox, can help users borrow money without harming their credit score or their financial situation in the long term. Although this is only a short-term fix, it can help prevent TD Bank’s overdraft fees and missed payments.

CLICK HERE FOR UP TO $2,500 FAST

TD Bank Overdraft Limits, Fees and Protection: How to Reverse Fees (9)

Final thoughts and What To Do Next…

We understand — overdrafts can sometimes help you get out of a tricky situation and provide you with immediate cash-in-hand.

However, spending an extra $35 at the ATM every time you overdraw your account can add up to extreme debt in no time. As a TD Bank account owner, it helps to know that the company’s services like specialized checking accounts and Overdraft Protection can help you manage any unwanted fees.

But if you would prefer other no-fee options, consider the following:

Although overdrafts and charges annoy every banking customer, you can easily avoid these pitfalls if you know where to turn. Take advantage of the tools that TD Bank provides to learn from our detailed guide and keep your hard-earned money in your pocket!

Watch: TD Bank agrees to settlement to refund $122 million in overdraft fees

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TD Bank Overdraft Limits, Fees and Protection: How to Reverse Fees (10)

Mitchel Harad is an expert in consumer lending, including cash advance apps and personal loans. He has over 20 years of experience in financial services at both banks (JP Morgan Chase) and upstart lenders (Lending Club, SocietyOne). He is passionate about educating consumers on how financial systems work to empower them to make informed and cost-effective decisions. During some challenging financial times, he paid thousands of dollars in overdraft fees at a time when he could least afford them – an experience he hopes to help others avoid.

Mitchel holds a Bachelors of Business Administration in Finance from The Goizeta School of Business at Emory University and a Masters of Business Administration from The Haas School of Business at The University of California.

TD Bank Overdraft Limits, Fees and Protection: How to Reverse Fees (11)

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  1. Chime SpotMe is an optional, no fee service that requires a single deposit of $200 or more in qualifying direct deposits to the Chime Checking Account each month and Visa debit card activation. All qualifying members will be allowed to overdraw their account up to $20 on debit card purchases and cash withdrawals initially, but may be later eligible for a higher limit of up to $200 or more based on member's Chime Account history, direct deposit frequency and amount, spending activity and other risk-based factors. Your limit will be displayed to you within the Chime mobile app. You will receive notice of any changes to your limit. Your limit may change at any time, at Chime's discretion. Although there are no overdraft fees, there may be out-of-network or third party fees associated with ATM transactions. SpotMe won't cover non-debit card transactions, including ACH transfers, Pay Anyone transfers, or Chime Checkbook transactions. See terms and conditions.
  2. Early access to direct deposit funds depends on the timing of the submission of the payment file from the payer. We generally make these funds available on the day the payment file is received, which may be up to 2 days earlier than the scheduled payment date.

As an expert in consumer finance with over 20 years of experience in financial services, including roles at JP Morgan Chase and upstart lenders like Lending Club and SocietyOne, I bring a wealth of knowledge to the intricacies of banking practices and fees. My expertise extends to overdraft policies, fees, and strategies to avoid them, making me well-equipped to analyze and provide insights into the content of the article on TD Bank's overdraft policies.

Now, let's delve into the key concepts covered in the article:

TD Bank's Overdraft Policy:

  1. Standard Overdraft Service:

    • Prohibits debit card purchases with insufficient funds.
    • Users can switch to TD Debit Card Advance for debit card use with insufficient funds.
  2. Overdraft Allowances:

    • Overdraw up to $50 without a fee.
    • 24-hour window for customers overdrawn by more than $50 to avoid a fee.
    • Opt-in options like TD Debit Card Advance and Savings Overdraft Protection.

Overdraft Fees:

  1. Standard Overdraft Fee:

    • $35 per overdraft transaction.
    • No fee for overdrafts of $10 or less.
  2. Overdraft Protection Options:

    • Monthly Plan ($5 per month).
    • Pay-as-you-go Plan ($5 per use).
    • Maximum of five overdraft fees per day.
  3. Account-specific Fees:

    • Vary based on account type (e.g., TD Beyond Checking, TD Convenience Checking).

Overdrafts at ATMs:

  1. Options for Overdrafts at ATMs:

    • TD Debit Card Advance (up to three times per day, $35 fee).
    • Savings Overdraft Protection (linked accounts, $3 per service, $35 fee).
  2. Default Setting:

    • Standard Overdraft Protection restricts withdrawals at ATMs if funds are insufficient.

NSF Fees (Non-Sufficient Funds):

  • $35 fee for overdrawing by more than $50 within 24 hours.

Overdraft Fee Waiver:

  • Possibility to get the first overdraft fee waived by contacting TD Bank customer service.

Strategies to Avoid Overdraft Fees:

  1. TD Bank Features:

    • Linking other accounts.
    • Setting up alerts with the TD Bank Mobile App.
    • Linking a personal credit line.
  2. No-Fee Overdraft Apps:

    • Mention of Chime's SpotMe service offering fee-free overdrafts up to $200.
  3. Cash Advance Apps:

    • Recommendation of using apps like PockBox to borrow money short-term and avoid overdraft fees.

Conclusion and Additional Options:

  • Suggested alternatives for fee-free options, including Chime's SpotMe and cash advance apps.
  • Encouragement to leverage TD Bank's services and tools to manage fees effectively.

This comprehensive breakdown reflects my deep understanding of the subject matter, providing valuable insights for readers seeking information on TD Bank's overdraft policies and strategies to mitigate associated fees.

TD Bank Overdraft Limits, Fees and Protection: How to Reverse Fees (2024)

FAQs

TD Bank Overdraft Limits, Fees and Protection: How to Reverse Fees? ›

Here's how it works: If your available balance is overdrawn by more than $50 by the end of the business day, you'll enter the Grace Period. That means you have until 11 p.m. ET the following business day to bring your available balance back to $0 and ultimately have your overdraft fee refunded.

Is there any way to get overdraft fees reversed? ›

Getting overdraft fees refunded is only a phone call or email away. Contacting customer service and requesting a waiver is both the simplest and most effective way of waiving expensive overdraft fees.

How do I waive my TD Bank overdraft fee? ›

Just call the TD Bank customer service phone number 1 (888) 751-9000 and ask if you can waive the overdraft fee. If it is the second time you overdraw, it's still possible to get a refund. Don't forget to check your account often in the future to avoid overdraft.

Can I refund overdraft fee? ›

Just because your bank has charged your account doesn't mean you can't try to get overdraft fees back. It's entirely possible to get your bank fees refunded. Just make sure to call as soon as possible and ask for an overdraft fee refund. Going forward, try your best to avoid overdraft fees in the first place.

How do I stop getting charged overdraft fees? ›

  1. Opt out of overdraft coverage.
  2. Watch your account balances regularly.
  3. Set up alerts for low balances.
  4. Deposit or transfer money quickly when an overdraft occurs.
  5. Link to another account.
  6. Get a prepaid debit card.
  7. Look for a bank with a generous overdraft policy.
  8. Glossary of overdraft terms.
Nov 14, 2022

Will TD Bank refund overdraft fees? ›

If your available balance is overdrawn by more than $50 by the end of the business day, you'll enter the Grace Period. That means you have until 11 p.m. ET the following business day to bring your available balance back to $0 and ultimately have your overdraft fee refunded.

Can I sue a bank for excessive overdraft fees? ›

When a bank engages in a violation involving an overdraft fee, they could be held liable for resulting damages to consumers, which can cover: Refunds for the fees charged. Losses caused by related harm, such as damaged credit. Damages related to consumer protection act violations.

Is TD overdraft protection free? ›

$5 monthly fee for TD Chequing Accounts: TD Minimum Chequing Account, TD Every Day Chequing Account, TD Unlimited Chequing Account and TD All-Inclusive Banking Plan. $4 monthly fee for Monthly Plan Overdraft Protection (MODP) service on P60 & Preferred Chequing Account.

What is TD overdraft protection? ›

TD Moneyline Overdraft Protection is an unsecured personal line of credit linked to your checking account that may help cover transactions when your checking account available balance drops below zero. It can help you avoid overdraft and return check fees and can cover transactions up to your available limit.

What's the number one cause of overdraft fees? ›

Overdraft fees occur when you don't have enough money in your account to cover your transactions.

Can I claim back my bank account fees? ›

Yes. Even if you no longer have the account, if you think you were mis-sold and you can get your hands on the paperwork then you can complain to your bank going as far back as when you had the account. However, it gets harder to complain about a packaged bank account that is over six years old.

How long do you have to pay back overdraft fees? ›

How long do you have to pay back an overdraft? This varies by bank, but you ordinarily have five business days to deposit enough money in your account to cover the overdraft. Beyond that, the bank may charge you additional overdraft fees.

How long is TD Bank overdraft grace period? ›

Here's how it works: If your available balance is overdrawn by more than $50 by the end of the business day, you'll enter the Grace Period. That means you have until 11 p.m. ET the following business day to bring your available balance back to $0 and ultimately have your overdraft fee refunded.

What is an overdraft protection fee? ›

Overdraft protection is an agreement with the bank or financial institution to cover overdrafts on a checking account. This service typically involves a fee and is generally limited to a preset maximum amount.

Why did I get an overdraft fee when not overdrawn? ›

However, banks and credit unions are allowed to charge you overdraft fees when the bank or credit union pays a check or certain recurring electronic payments that would have overdrawn your account, even if you did not opt in. Some banks may also allow you to opt-out of overdrafts for checks and other types of payments.

What is overdraft fee forgiven? ›

If your account is overdrawn by $50.01 or more and you were charged an Overdraft Paid Fee(s), Overdraft Fee Forgiven 1 gives you time to take action 2 to have the fee(s) waived.

Which banks are eliminating overdraft fees? ›

7 checking accounts with zero overdraft fees
  • Capital One 360 Checking® Account. ...
  • Ally Bank Spending Account. ...
  • Discover® Cashback Debit Account. ...
  • Axos Bank Rewards Checking. ...
  • Betterment Checking. ...
  • Wealthfront Cash Account. ...
  • Alliant Credit Union High-Rate Checking.

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