{"id":14850,"date":"2026-01-05T09:36:00","date_gmt":"2026-01-05T15:36:00","guid":{"rendered":"https:\/\/www.teryrtuytyut.sbs\/online-banking\/banking-topics\/?p=14850"},"modified":"2026-02-05T12:03:03","modified_gmt":"2026-02-05T18:03:03","slug":"what-is-overdraft-protection","status":"publish","type":"post","link":"https:\/\/www.teryrtuytyut.sbs\/online-banking\/banking-topics\/what-is-overdraft-protection\/","title":{"rendered":"What is overdraft protection?"},"content":{"rendered":"\n<script type=\"application\/ld+json\">\n{\n  \"@context\": \"https:\/\/schema.org\",\n  \"@type\": \"FAQPage\",\n  \"mainEntity\": [{\n    \"@type\": \"Question\",\n    \"name\": \"What is overdraft protection?\",\n    \"acceptedAnswer\": {\n      \"@type\": \"Answer\",\n      \"text\": \"Overdraft protection is a service offered by some banks that allows account holders to link two accounts\u2014such as checking, savings, or money market accounts\u2014to help avoid overdraft fees and declined transactions.\"\n    }\n  },{\n    \"@type\": \"Question\",\n    \"name\": \"What is an overdraft?\",\n    \"acceptedAnswer\": {\n      \"@type\": \"Answer\",\n      \"text\": \"\u201cAn overdraft is when you don't have enough money in your bank account to cover a transaction you've authorized,\u201d Wang says. \u201cThis can be a debit charge or a check or even a bank transfer. When you overdraw your account, you may be charged a fee by your bank until you bring your balance up above zero.\u201d He notes that overdraft fees charged by some banks can really sting\"\n    }\n  },{\n    \"@type\": \"Question\",\n    \"name\": \"Does an overdraft affect my credit score?\",\n    \"acceptedAnswer\": {\n      \"@type\": \"Answer\",\n      \"text\": \"Not directly, according to Wang. \n\n\u201c[Overdrafts] aren't reported to credit bureaus, but it could be a sign of a bigger spending or money management problem,\u201d he says. \u201cIf you overdraft your account and don't pay back the debt, it could be sent to collections, and that could have a significant negative impact on your credit score.\u201d\"\n    }\n  },{\n    \"@type\": \"Question\",\n    \"name\": \"How much can I overdraft my checking account?\",\n    \"acceptedAnswer\": {\n      \"@type\": \"Answer\",\n      \"text\": \"When you enroll in overdraft protection, how much you can overdraft your checking account depends on your bank. \n\nWang recommends taking a good look at your deposit agreement to see how your bank handles overdrafts. \u201cIf a bank charges an overdraft fee, they may not charge you a fee if you overdraw by less than $5,\u201d he says. \u201cSome will charge you even if you are $1 over. It depends on the bank, so read the fine print on your account to be sure.\u201d\"\n    }\n  },{\n    \"@type\": \"Question\",\n    \"name\": \"What is an overdraft fee?\",\n    \"acceptedAnswer\": {\n      \"@type\": \"Answer\",\n      \"text\": \"An overdraft fee is the fee your bank charges when you overdraw your account, says Wang.\"\n    }\n  },{\n    \"@type\": \"Question\",\n    \"name\": \"What is overdraft protection?\",\n    \"acceptedAnswer\": {\n      \"@type\": \"Answer\",\n      \"text\": \"Overdraft protection allows account holders to link two accounts\u2014such as checking, savings, or money market accounts. So if, for example, a customer\u2019s checking account is overdrawn, the money in the linked account can be automatically accessed by the bank to cover the transaction.\"\n    }\n  },{\n    \"@type\": \"Question\",\n    \"name\": \"How does overdraft protection work?\",\n    \"acceptedAnswer\": {\n      \"@type\": \"Answer\",\n      \"text\": \"With overdraft protection, you significantly reduce the chance you'll overdraw your checking account,\u201d Wang explains. \u201cWhen you opt in, your checking account is now protected by your savings account. If you overdraw your checking account, the bank will automatically transfer funds from your savings account into your checking account so it is no longer overdrawn.\"\n    }\n  }]\n}\n<\/script>\n\n\n\n<p>Overdraft protection is a service offered by some banks that allows account holders to link two accounts\u2014such as <a href=\"https:\/\/www.capitalone.com\/bank\/checking-accounts\/online-checking-account\/?src=dfsmm-check&amp;art=what-is-overdraft-protection\" target=\"_blank\" rel=\"noreferrer noopener\">checking<\/a>, savings, or money market accounts\u2014to help avoid overdraft fees and declined transactions.<\/p>\n\n\n\n<p>Jim Wang knows firsthand how helpful overdraft protection can be. When he withdrew more money from his checking account than he had\u2014an overdraft\u2014it was a one-off expense that did it.<\/p>\n\n\n\n<p>Back in 2016, Wang and a group of friends planned a vacation to Deep Creek Lake, Maryland. Wang agreed to book the vacation home on his credit card, and his friends agreed to contribute money to the total cost.<\/p>\n\n\n\n<p>\u201cIt was a perfect storm because I set my credit card to autopay in full, which draws from my main checking account,\u201d he says. \u201cSince all the payments from my friends went to another bank, I didn&#8217;t have enough in checking to pay for it. Boom,&nbsp;overdraft.\u201d<\/p>\n\n\n\n<p>But because Wang had enrolled in his bank\u2019s overdraft protection service, his checking account wasn\u2019t overdrawn. His bank simply transferred the required funds from his savings account to his checking account.<\/p>\n\n\n\n<p>Still, he says, \u201cIt was a good reminder that it&#8217;s always those weird scenarios that get us.\u201d<\/p>\n\n\n\n<p>So, what is overdraft protection, and how does overdraft protection work?<\/p>\n\n\n\n<p>Wang, who is the founder of a personal finance blog, offers insights on the risks associated with overdrawing your account and why you should consider enrolling in your bank\u2019s overdraft protection service.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-is-an-overdraft\">What is an overdraft?<\/h2>\n\n\n\n<p>\u201cAn&nbsp;overdraft&nbsp;is when you don&#8217;t have enough money in your bank account to cover a transaction you&#8217;ve authorized,\u201d Wang says. \u201cThis can be a debit charge or a check or even a bank transfer. When you&nbsp;overdraw&nbsp;your account, you may be charged a&nbsp;fee&nbsp;by your bank until you bring your balance up above zero.\u201d He notes that overdraft fees charged by some banks can really sting.<\/p>\n\n\n\n<p>But different banks handle overdrafts in different ways. Some cover the transaction and charge the customer a fee, while others simply decline the transaction. Federal law requires banks to disclose their policies on overdrafts.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"2095\" height=\"858\" src=\"https:\/\/www.teryrtuytyut.sbs\/online-banking\/banking-topics\/wp-content\/uploads\/2024\/02\/What-is-overdraft-protection_1-InArticle-e1709218597385.jpg\" alt=\"A man kneels to fasten a boy's bicycle helmet, with grass and trees in the background.\" class=\"wp-image-18638\" srcset=\"https:\/\/www.teryrtuytyut.sbs\/online-banking\/banking-topics\/wp-content\/uploads\/2024\/02\/What-is-overdraft-protection_1-InArticle-e1709218597385.jpg 2095w, https:\/\/www.teryrtuytyut.sbs\/online-banking\/banking-topics\/wp-content\/uploads\/2024\/02\/What-is-overdraft-protection_1-InArticle-e1709218597385-300x123.jpg 300w, https:\/\/www.teryrtuytyut.sbs\/online-banking\/banking-topics\/wp-content\/uploads\/2024\/02\/What-is-overdraft-protection_1-InArticle-e1709218597385-780x319.jpg 780w, https:\/\/www.teryrtuytyut.sbs\/online-banking\/banking-topics\/wp-content\/uploads\/2024\/02\/What-is-overdraft-protection_1-InArticle-e1709218597385-768x315.jpg 768w, https:\/\/www.teryrtuytyut.sbs\/online-banking\/banking-topics\/wp-content\/uploads\/2024\/02\/What-is-overdraft-protection_1-InArticle-e1709218597385-1536x629.jpg 1536w, https:\/\/www.teryrtuytyut.sbs\/online-banking\/banking-topics\/wp-content\/uploads\/2024\/02\/What-is-overdraft-protection_1-InArticle-e1709218597385-2048x839.jpg 2048w\" sizes=\"auto, (max-width: 2095px) 100vw, 2095px\" \/><\/figure>\n\n\n\n<p><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Does an overdraft affect my credit score?<\/h3>\n\n\n\n<p>If you\u2019re concerned about some of the risks of overdrawing your checking account, you might wonder, \u201cDoes an overdraft affect my credit score?\u201d<\/p>\n\n\n\n<p>Not directly, according to Wang.<\/p>\n\n\n\n<p>\u201c[Overdrafts] aren&#8217;t reported to credit bureaus, but it could be a sign of a bigger spending or money management problem,\u201d he says. \u201cIf you&nbsp;overdraft&nbsp;your account and don&#8217;t pay back the debt, it could be sent to collections, and that could have a significant negative impact on your credit score.\u201d<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">How much can I overdraft my checking account?<\/h3>\n\n\n\n<p>When you enroll in overdraft protection, how much you can overdraft your checking account depends on your bank.<\/p>\n\n\n\n<p>Wang recommends taking a good look at your deposit agreement to see how your bank handles overdrafts. \u201cIf a bank charges an overdraft fee, they may not charge you a fee if you overdraw by less than $5,\u201d he says. \u201cSome will charge you even if you are $1 over. It depends on the bank, so read the fine print on your account to be sure.\u201d<\/p>\n\n\n\n<p>Some banks also charge you a separate fee for each transaction where you are overdrawn. For instance, if you didn\u2019t know your bank account was below zero and you made three purchases, you could be hit with three overdraft fees.<\/p>\n\n\n<\/div>\n\n\n<div class=\"mx-auto block-quote block-quote--1back bg-fixed bg-center bg-no-repeat bg-cover z-0\">\n    <div class=\"block-quote__glow\"><\/div>\n    <blockquote class=\"post--constrain-large\">\n        <p>\u201cKeep good records of your bank balance and avoid large, irregular transactions that could potentially bring your balance below zero.\u201d<\/p>\n                    <footer class=\"block-quote__source\">Jim Wang, founder of a personal finance blog<\/footer>\n            <\/blockquote>\n<\/div>\n\n\n    <div class=\"post__content\">\n\n\n\n\n<h2 class=\"wp-block-heading\">What is an overdraft fee?<\/h2>\n\n\n\n<p>An overdraft fee&nbsp;is the fee your bank charges when you&nbsp;overdraw&nbsp;your account, says Wang.<\/p>\n\n\n\n<p>Overdraft fees can vary from bank to bank. According to NerdWallet, banks typically charge their customers a <a href=\"https:\/\/www.nerdwallet.com\/article\/banking\/overdraft-fees-what-banks-charge\" target=\"_blank\" rel=\"noreferrer noopener\">$30 to $35 overdraft fee<\/a> for overdrawing their account. If you\u2019ve made multiple transactions and your bank account has insufficient funds to cover them, your bank could charge you an overdraft fee for each transaction\u2014and that can add up fast.<\/p>\n\n\n\n<p>But some banks either decline the purchase or revert to overdraft protection so that customers avoid any overdraft fees. &nbsp;<\/p>\n\n\n\n<p>Does your checking account charge overdraft fees? <a href=\"https:\/\/www.capitalone.com\/bank\/checking-accounts\/online-checking-account\/?src=dfsmm-check&amp;art=what-is-overdraft-protection\" target=\"_blank\" rel=\"noreferrer noopener\">Capital One 360 Checking<\/a> doesn\u2019t, helping you hold on to more of your money.<sup>1<\/sup><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">What is overdraft protection?&nbsp;<\/h2>\n\n\n\n<p>Overdraft protection allows account holders to link two accounts\u2014such as checking, <a href=\"https:\/\/www.capitalone.com\/bank\/savings-accounts\/online-performance-savings-account\/?src=dfsmm-sav&amp;art=what-is-overdraft-protection\" target=\"_blank\" rel=\"noreferrer noopener\">savings, <\/a>or money market accounts. So if, for example, a customer\u2019s checking account is overdrawn, the money in the linked account can be automatically accessed by the bank to cover the transaction. \u00a0<\/p>\n\n\n\n<p>If you\u2019re looking for a way to prevent overdraft fees and avoid declined transactions, enroll in your bank\u2019s overdraft protection service. Wang highly recommends overdraft protection if your bank offers it. But keep in mind that it\u2019s not an automatic benefit; you must opt into it.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">How does overdraft protection work?&nbsp;<\/h3>\n\n\n\n<p>\u201cWith&nbsp;overdraft&nbsp;protection, you significantly reduce the chance you&#8217;ll&nbsp;overdraw&nbsp;your protected account,\u201d Wang explains. \u201cFor example, when you opt in, you can choose your savings account to protect your checking account. If you overdraw&nbsp;your checking account, the bank will automatically transfer funds from your savings account into your checking account so it is no longer&nbsp;overdrawn.\u201d<\/p>\n\n\n\n<p>The only caveat is that you need to make sure that your savings account or other linked account has enough funds to cover any overdrafts.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"2560\" height=\"1707\" src=\"https:\/\/www.teryrtuytyut.sbs\/online-banking\/banking-topics\/wp-content\/uploads\/2023\/03\/What-is-overdraft-protection_2-InArticle-scaled.jpg\" alt=\"A woman reclines on a pillow and smiles while looking at her mobile phone.\" class=\"wp-image-15056\" srcset=\"https:\/\/www.teryrtuytyut.sbs\/online-banking\/banking-topics\/wp-content\/uploads\/2023\/03\/What-is-overdraft-protection_2-InArticle-scaled.jpg 2560w, https:\/\/www.teryrtuytyut.sbs\/online-banking\/banking-topics\/wp-content\/uploads\/2023\/03\/What-is-overdraft-protection_2-InArticle-300x200.jpg 300w, https:\/\/www.teryrtuytyut.sbs\/online-banking\/banking-topics\/wp-content\/uploads\/2023\/03\/What-is-overdraft-protection_2-InArticle-780x520.jpg 780w, https:\/\/www.teryrtuytyut.sbs\/online-banking\/banking-topics\/wp-content\/uploads\/2023\/03\/What-is-overdraft-protection_2-InArticle-768x512.jpg 768w, https:\/\/www.teryrtuytyut.sbs\/online-banking\/banking-topics\/wp-content\/uploads\/2023\/03\/What-is-overdraft-protection_2-InArticle-1536x1024.jpg 1536w, https:\/\/www.teryrtuytyut.sbs\/online-banking\/banking-topics\/wp-content\/uploads\/2023\/03\/What-is-overdraft-protection_2-InArticle-2048x1365.jpg 2048w\" sizes=\"auto, (max-width: 2560px) 100vw, 2560px\" \/><\/figure>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Stay proactive to avoid overdraft fees and protect your account<\/h2>\n\n\n\n<p>To avoid overdraft fees, make sure you\u2019re wisely <a href=\"https:\/\/www.teryrtuytyut.sbs\/online-banking\/banking-topics\/7-tips-to-manage-your-checking-account\/\" target=\"_blank\" rel=\"noreferrer noopener\">managing your checking account<\/a>.<\/p>\n\n\n\n<p>\u201cKeep good records of your bank balance and avoid large, irregular&nbsp;transactions that could potentially bring your balance below zero,\u201d Wang says.<\/p>\n\n\n\n<p>He also highly recommends creating a budget if you don\u2019t already have one. <a href=\"https:\/\/www.teryrtuytyut.sbs\/online-banking\/banking-topics\/one-of-the-most-important-skills-youll-ever-learn-how-to-budget\/\" target=\"_blank\" rel=\"noreferrer noopener\">Starting and maintaining a budget<\/a> will give you a better understanding of the money coming into and going out of your bank account. A budget can help you manage irregular expenses like home improvements, vacations, and car maintenance that may be more likely to result in overdrafts.<\/p>\n\n\n\n<p>\u201cDo whatever you can to avoid [overdraft fees],\u201d Wang says. \u201cIt feels horrible to pay $30 to $40 when it could be avoided. And get&nbsp;overdraft&nbsp;protection&nbsp;if it&#8217;s offered for free!\u201d<\/p>\n\n\n\n<p>Banking should be on your side. That\u2019s why Capital One has removed overdraft fees to help you keep your hard-earned cash where it belongs.<sup>1<\/sup><\/p>\n\n\n<div class=\"disclaimer\">\n    <p><sup>1<\/sup>No-fee overdraft authorizes us to consider paying your checks, ACH and recurring debit transactions that put your account into overdraft. You also have the option to ask us to consider paying your everyday debit card and ATM transactions if they would cause you to overdraft your account. In making a payment decision, we typically consider a variety of factors, including the size of the transaction, whether your account is in good standing and\/or if you have had too many overdrafts. If we elect to pay an overdraft item, you have no right to defer payment and you must deposit additional funds into your account promptly in an amount sufficient to cover the overdraft. To qualify for no-fee overdraft, you must regularly deposit at least $250 during two of the previous three calendar months. Accounts that haven&#8217;t met this will no longer have access to overdraft until the next month when you&#8217;ve met this requirement. New accounts will not have access to no-fee overdraft until the consistent deposit requirement has been met.<\/p>\n\n<\/div>\n \n\n\n<p class=\"disclaimer\">Articles may contain information from third parties. The inclusion of such information does not imply an affiliation with the bank or bank sponsorship, endorsement, or verification regarding the third party or information.<\/p>\n\n\n\n<p class=\"disclaimer\">The information provided herein is for informational purposes only and is not intended to be construed as professional advice. Nothing contained in this article shall give rise to, or be construed to give rise to, any obligation or liability whatsoever on the part of Discover, a division of Capital One, N.A., or its affiliates.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Know how to avoid the fees and inconveniences that overdrafts can cause. <\/p>\n","protected":false},"author":15,"featured_media":22844,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[76,23],"tags":[135,126,35,104,102,32,49],"class_list":["post-14850","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-banking101","category-checking","tag-automatic-transfer","tag-fees","tag-financial-education","tag-managing-your-money","tag-online-checking-account","tag-online-savings-account","tag-spending"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.teryrtuytyut.sbs\/online-banking\/banking-topics\/wp-json\/wp\/v2\/posts\/14850","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.teryrtuytyut.sbs\/online-banking\/banking-topics\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.teryrtuytyut.sbs\/online-banking\/banking-topics\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.teryrtuytyut.sbs\/online-banking\/banking-topics\/wp-json\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/www.teryrtuytyut.sbs\/online-banking\/banking-topics\/wp-json\/wp\/v2\/comments?post=14850"}],"version-history":[{"count":46,"href":"https:\/\/www.teryrtuytyut.sbs\/online-banking\/banking-topics\/wp-json\/wp\/v2\/posts\/14850\/revisions"}],"predecessor-version":[{"id":23304,"href":"https:\/\/www.teryrtuytyut.sbs\/online-banking\/banking-topics\/wp-json\/wp\/v2\/posts\/14850\/revisions\/23304"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.teryrtuytyut.sbs\/online-banking\/banking-topics\/wp-json\/wp\/v2\/media\/22844"}],"wp:attachment":[{"href":"https:\/\/www.teryrtuytyut.sbs\/online-banking\/banking-topics\/wp-json\/wp\/v2\/media?parent=14850"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.teryrtuytyut.sbs\/online-banking\/banking-topics\/wp-json\/wp\/v2\/categories?post=14850"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.teryrtuytyut.sbs\/online-banking\/banking-topics\/wp-json\/wp\/v2\/tags?post=14850"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}