April 2, 2021 2:00 PM PT

What is Chase Overdraft Protection?

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Chase charges a hefty $34 insufficient funds policy. Find out how to avoid fees with their overdraft protection services.

The easiest way to avoid overdraft fees is to sign up for Chase overdraft protection. Once you're enrolled, Chase will transfer money from your savings to cover an overdraft in your checking balance. The process is actually pretty simple.

Take a look at how to get rid of overdraft fees once and for all.

What is an overdraft?

An overdraft is when you don't have enough money in your account to cover a purchase, check or payment. And your bank or credit union pays the transaction for you.

Many banks and credit unions will charge you a fee for covering the transaction. In addition, you're required to repay the overdraft amount.

For example, you can overdraw in ATM transactions, automatic bill payments, and electronic or in-person withdrawals.

Banks and credit unions have different fees for overdraft protection. You should research a bank's overdraft policy before signing up for a checking account. Overdraft fees are one of the biggest and most frustrating charges for banking customers.

Overdraft Services

To help out checking account holders, Chase offers two main overdraft services: overdraft protection and debit card coverage.

1. Overdraft Protection

Chase's overdraft protection feature lets you link your Chase savings account to your checking account. If your checking account doesn't have enough funds to cover the purchase but your savings account does, you can transfer that amount into your checking account.

Screenshot of Chase

This service covers all transactions, including everyday debit card transactions. However, when there isn't enough money in your linked Chase savings account then you'll be charged an overdraft fee.

How to set up Chase overdraft protection on Chase Mobile ® App:

  1. Sign in to your Chase Mobile ® App
  2. Select the checking account you want to have Overdraft Protection
  3. Swipe up to view the rest of the page
  4. Select Overdraft protection
  5. Select Choose account
  6. Choose the savings account as the Overdraft Protection backup account for your checking account
  7. Select Done
  8. Review the Overdraft Protection Service Terms & Conditions and select your agreement
  9. Select Update protection

2. Debit Card Coverage

Chase offers Debit Card Coverage for everyday debit card transactions. If you're purchasing an item and you don't have enough funds in your account, you can choose "Yes" or "No."

  • Select "No" - the purchase will be declined and you won't be charged a fee
  • Select "Yes" - Chase may cover this transaction and charge a fee. This fee will vary based on your account history, deposits you make and transaction amount.

This service covers everyday debit card transactions only (such as groceries, gasoline or dining out).

How to set up debit card coverage on Chase Mobile ® App:

  1. Sign in to your Chase Mobile ® App
  2. Select the checking account you want to have Debit Card Coverage
  3. Swipe up to view the rest of the page
  4. Select Debit card coverage
  5. Review the Chase debit card coverage Terms & Conditions and select your agreement
  6. Choose Coverage selection
  7. Select Update coverage

Overall, Chase's overdraft protection is simpler than their debit card coverage service.

Overdraft Fees

If you incur an overdraft, these are the checking account fees:

  • $34 Insufficient Funds Fee per item
  • $34 Returned Item Fee per check automatic payment
  • If a merchant submits the same check or automatic payment multiple times, it may result in both a Returned Item Fee and Insufficient Funds Fee. If Chase returns one of these items, they'll charge you one Returned Item Fee for that item within a 30-day period.
  • Maximum of three fees per day (total of $102)

If you overdraw your account, you can avoid the overdraft fee. Just deposit or transfer funds into your account to cover the payment before the business day ends. Here are the cutoff times:

  • At a branch, before it closes
  • At an ATM, before 11PM ET / 8PM PT
  • On Chase.com or the Chase Mobile ® app or use Chase QuickPay®, before 11PM ET / 8PM PT

Chase overdraft forgiveness:
You can try to negotiate overdraft fee refunds via the Secure Message Center on the Chase website or by calling customer service (1-800-935-9935). If it's your first time, they will likely give you a free pass.

There's no fee to enroll in Overdraft Protection or Debit Card Coverage. But Overdraft Protection has fewer potential fees. To make your finances simpler, enroll in Chase Overdraft Protection.

Bottom Line

After opening a Chase bank account, signing up for overdraft protection should be one of the first things you do. You'll avoid headaches and unnecessary fees. And if you don't have a checking account with Chase yet, check out the current Chase coupon promotions.

Chase
Member FDIC

Chase Total Checking® - $225 Bonus

Expires 1/19/2022
  • New Chase checking customers enjoy a $225 bonus when you open a new Chase Total Checking® account and set up direct deposit
  • Access to 16,000 Chase ATMs and more than 4,700 branches
  • Chase Mobile® app - Manage your accounts, deposit checks, transfer money and more -- all from your device.
  • Open your account online now
  • Available online nationwide except in Alaska, Hawaii and Puerto Rico. For branch locations, visit locator.chase.com.
Citibank

Citi Priority Account - Up to $1,500 Cash Bonus

Expires 1/4/2022
  • Earn up to $1,500 cash bonus when you open a new account with required activities
  • Open a new eligible checking account in the Citi Priority Account during the offer period 10/5/21-1/4/22
  • Within 20 days of opening, deposit $50,000 in New-To Citibank funds between the new checking and savings accounts
  • Maintain a minimum balance of $50,000 in the checking account for an additional 60 consecutive calendar days from the 21st day
  • After all required activities are met, the cash bonus will be deposited to your account within 90 calendar days
TD Bank
Member FDIC

TD Beyond Checking - $300 Cash Bonus

  • New customers who apply online for a TD Beyond Checking account can earn a $300 cash bonus after receiving direct deposits of $2,500 or more within 60 days. To qualify for this offer, you must be a U.S. resident and apply for the offer online. Offer is available in these states: CT, DC, DE, FL, MD, ME, MA, NC, NH, NJ, NY, PA, RI, SC, VT, VA
  • Earn $300 when you receive direct deposits totaling $2,500 or more within 60 days
  • Get more from your checking account. With TD Beyond Checking with Payback Plus, you'll earn interest and get reimbursed for non-TD ATM transactions, Rush Bill Payments and more.
  • Monthly maintenance fee waived when you receive monthly direct deposits of $5,000 or more, or maintain a minimum daily balance of $2,500, or a combined balance of $25,000 across eligible TD accounts.
  • TD fees waived at any ATM and non-TD fees reimbursed when you keep at least a $2,500 daily balance
  • Overdraft Payback - Get overdraft fees automatically reversed up to two times a year.
  • Get your money where it needs to go —fast— with Rush Bill Payments, Send Money with Zelle®, incoming wires and a reimbursement for one outgoing wire (domestic or international) per statement cycle.
  • TD checking accounts come with an instant-issue debit card. And, you can pay with confidence with Zero Liability protection and 24/7 fraud monitoring.
  • Monthly maintenance fee waived on one TD Simple Checking℠ account and any Savings and Money Market accounts. Plus, get free standard check orders, money orders, official bank checks and stop payments.
Discover Bank
Member FDIC

Discover Online Savings - $200 Cash Bonus

To get your $150 or $200 Bonus: What to do: Apply for your first Discover Online Savings Account, online or by phone. Enter Offer Code CY21 when applying. Deposit into your account a total of at least $15,000 to earn a $150 Bonus or deposit a total of at least $25,000 to earn a $200 Bonus. Deposit must be posted to account within 30 days of account open date. Maximum bonus eligibility is $200.

What to know: Offer not valid for existing or prior Discover savings customers or existing or prior customers with savings accounts that are co-branded, or affinity accounts provided by Discover. Eligibility is based on primary account owner. Account must be open when bonus is credited. Bonus will be credited to the account within 30 days of the account qualifying for the bonus. Bonus is interest and subject to reporting on Form 1099-INT. Offer ends 12/15/21, 11:59 PM ET. Offer may be modified or withdrawn without notice. See advertiser website for full details.

Expires 12/15/2021
CIT Bank
Member FDIC

CIT Bank Money Market Account - 0.45% APY

  • 0.45% APY
  • $100 minimum opening deposit
  • No monthly maintenance fee

Amber Kong is a content and creative at CreditDonkey, a bank comparison and reviews website. Write to Amber Kong at amber.kong@creditdonkey.com. Follow us on Twitter and Facebook for our latest posts.

Note: This website is made possible through financial relationships with some of the products and services mentioned on this site. We may receive compensation if you shop through links in our content. You do not have to use our links, but you help support CreditDonkey if you do.

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