Editor’s Note: Overdraft Apps provides detailed product reviews and recommendations based upon extensive research and our own hands-on testing. We may earn a referral fee when you sign up for or purchase products mentioned in this article.
There’s nothing like a Sunday morning when the sun is shining and the birds are chirping. The day begins with such bliss that it is hard to imagine something that could put a damper on your smile. You use your U.S. Bank debit card to buy coffee and a treat, realize you need a bird feeder for the summer and without any further thought, head over to the hardware store to buy one.
Then the realization sinks in. Your bank account went negative, and you were shocked to find out that you have been charged $72 in overdraft fees!
An overdraft fee occurs when you do not have enough money in your bank account to cover your transactions, causing your account balance to go negative. Your bank may still pay for these charges, but it is essentially giving you a small, unplanned loan – and often charges you a steep fee for this service.
If you’re a customer of U.S. Bank, it’s important to understand the overdraft policies associated with the account you have as well as the options you have to avoid these costly fees. Let’s go over U.S. Bank’s overdraft limit, overdraft fees, and how to avoid them. Plus, we’ll reveal some alternatives to access the money you need, when you need it.
Why have 14 million people ditched their high-fee bank for Chime?
- Get up to $200 whenever you need it.Access extra spending power instantly with no overdraft fees1
- Say goodbye to fees! No monthly fees, no minimum balance requirement and over 60,000 fee-free ATMs
- 💸💸😎 Get paid up to two days early with direct deposit2
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 is U.S. Bank’s overdraft policy?
You have two overdraft options with your U.S. Bank checking account – overdraft protection or standard overdraft coverage.
Overdraft protection allows you to link another account to your checking account to cover any excess withdrawn. When an overdraft occurs, you will only be charged a $12.50 transfer fee. Overdraft protection is not automatic, and users must opt-in to the program and link a U.S. Bank savings account and/or credit card to be eligible. If you do not enroll in overdraft protection, you will not be able to use your U.S. Bank debit card for purchases or ATM withdrawals that would exceed your account balance.
If you do not enroll in U.S. Bank overdraft protection, your account will be subject to standard overdraft coverage. Only checks, automatic bill payments and recurring debit card transactions will be paid (subject to the bank’s discretion) and you will be charged a $36 fee for each overdraft transaction.
If a transaction will take your account balance below zero, the bank will look at your overdraft coverage selections to decide the best way to handle the transaction. Overdraft transactions are approved at the bank’s discretion. U.S. Bank won’t automatically process your overdraft transactions, and the bank will consider your account history when deciding whether to approve transactions for an overdrawn account.
How much are U.S. Bank’s overdraft fees?
| Fee | Cost | Maximum Overdrafts Per Day | Maximum Daily Cost |
| U.S. Bank Overdraft Over $5.01 Fee | $36 | 4 | $144 |
| U.S. Bank Overdraft Under $5.00 | $0 | N/A | $0 |
| U.S. Bank Linked Account Transfer Fee | $12.50 | 4 | $50 |
Under standard overdraft coverage, U.S. Bank charges a $36 overdraft fee per transaction with a maximum of 4 charges per day – up to $144.
Under overdraft protection, you will not be charged overdraft fees if your account is overdrawn by $5 or less. If the negative balance in your account is $5.01 or more, the overdraft protection will kick in. Money is transferred from your linked account into your checking account in multiples of $50 with $12.50 assessed in transfer fees. (If you don’t have enough in your linked accounts to cover these transactions, you may still be subject to a $12 overdraft fee.)
If your account remains negative by $50.01 or more for 8 consecutive days, you’ll be charged an additional $36 extended overdraft fee. You may be unable to access your account until you make a deposit to bring the balance back above zero.
There is a little good news. U.S. Bank stopped charging non-sufficient funds fees on returned items (i.e. bounced checks) in January of 2022.
WAIT! High overdraft fees aren't the only way U.S. 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.
U.S. Bank savings accounts currently pay just 0.01% APY1 as of 11/22/2022. That means that if you have $2,500 in a savings account, you'd earn just $0.25 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:
What is U.S. Bank’s overdraft limit?
U.S. Bank will authorize certain transactions in your account even when it is negative. U.S. Bank does not directly disclose your overdraft limit to you and it may vary by day. Your overdraft limit is based on your overdraft policy selections, the age of your account, your average account balance, and frequency of recurring deposits, and your overall account history. Large transactions and leaving your account balance negative for more than a day or two may trigger overdraft limits that restrict access to your account.
There is no specific way to increase your overdraft limit at U.S. Bank but being enrolled in overdraft protection may increase the likelihood that certain transactions will be successful.
Can you get a U.S. Bank overdraft fee waived?
Most U.S. Bank checking accounts are eligible for U.S. Bank’s Overdraft Fee Forgiven program, which provides you with a grace period to make a deposit and reverse overdraft fees. You have until 11pm EST on the next business day to bring your account balance to overdrawn by less than $50 (or better yet, positive!) to have overdraft fees reversed.
For example, on Tuesday, your account balance is $10. You make a $100 ATM withdrawal, which takes your balance to negative $90. On Wednesday, a $36 overdraft fee was charged. With Overdraft Fee Forgiven, the overdraft fee will be waived if you deposit of $40 or more is made by 11 p.m. ET on Wednesday.
How to avoid overdraft fees from U.S. Bank
Overdraft fees are a simple nuisance that can be avoided with the right proactive measures. The first step to avoiding overdraft fees is to simply be aware of your budget and your cash flows. Checking your account balance daily can help you avoid any overdraft.
Even if you are always on top of your budget, enrolling in an overdraft protection program and linking a savings account or credit card to the program can keep you protected from costly standard overdraft fees.
Moreover, set up low balance alerts to notify you when your balance is approaching zero and protect you from making transactions your account cannot afford. U.S. Bank has set up plenty of options for users to have overdraft protection and even waive fees associated with the program, but users without the protection could be responsible for high overdraft fees of up to $144 per day. If this becomes an increasingly prevalent issue for your finances, consider a new bank with a more manageable overdraft policy – Chime offers no-fee overdrafts for up to $200.
Watch: U.S. Bank explains overdraft limits, fees and alternatives
- Author
- Recent Posts
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.
Latest posts by Mitchel Harad (see all)
- $100 Instant Loan Apps:We’ve Tested Dozens - December 16, 2023
- Ultimate Holiday Hacks for No Cost Cash - November 25, 2023
- Cleo App Review – $250 Cash Advances and Wiseass AI Money Management - November 22, 2023
- 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.
- 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.
Greetings, readers. I'm Mitchel Harad, an expert in consumer lending with over 20 years of experience in financial services, including roles at major banks like JP Morgan Chase and innovative lenders such as Lending Club and SocietyOne. My expertise extends to cash advance apps and personal loans, and I hold 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.
Now, let's delve into the concepts presented in the article about U.S. Bank's overdraft policies:
1. Overdraft Definition: An overdraft occurs when a bank account balance goes negative due to insufficient funds to cover transactions. The bank may still process these transactions, essentially providing a short-term loan, but charges fees for this service.
2. U.S. Bank's Overdraft Options: U.S. Bank provides two overdraft options:
- Overdraft Protection: Users can link another account to cover overdrafts, with a $12.50 transfer fee. It requires opting in and linking a U.S. Bank savings account and/or credit card.
- Standard Overdraft Coverage: Applies when users don't enroll in protection. Only specific transactions are paid, and a $36 fee is charged per overdraft transaction, with a maximum of 4 charges per day.
3. U.S. Bank's Overdraft Fees: Under standard overdraft coverage, U.S. Bank charges a $36 fee per transaction, with a maximum of 4 charges per day, up to $144. Overdraft protection incurs a $12.50 transfer fee for each transfer, and if an account remains negative by $50.01 or more for 8 consecutive days, an additional $36 extended overdraft fee is charged.
4. U.S. Bank's Overdraft Limit: U.S. Bank doesn't directly disclose overdraft limits, and they may vary based on factors like overdraft policy selections, account age, average balance, deposit frequency, and overall account history.
5. U.S. Bank's Overdraft Fee Forgiveness Program: Most U.S. Bank checking accounts are eligible for the Overdraft Fee Forgiven program. It allows a grace period until 11 p.m. EST on the next business day to make a deposit and reverse overdraft fees.
6. Avoiding Overdraft Fees: Strategies to avoid U.S. Bank's overdraft fees include:
- Monitoring account balance regularly.
- Enrolling in overdraft protection and linking a savings account or credit card.
- Setting up low balance alerts.
- Being aware of U.S. Bank's Overdraft Fee Forgiven program.
7. U.S. Bank's Overdraft Limit Increase: While there's no specific way to increase the overdraft limit, being enrolled in overdraft protection may enhance the success of certain transactions.
8. Chime as an Alternative: The article mentions Chime as an alternative with no-fee overdrafts up to $200. Chime is a financial technology company, not a bank, offering banking services through partners like The Bancorp Bank, N.A., or Stride Bank N.A.
In conclusion, understanding U.S. Bank's overdraft policies, fees, and alternatives is crucial for making informed financial decisions. Being proactive in managing accounts and exploring alternatives like Chime can help users avoid costly overdraft fees.
