What is Chase Overdraft Protection?
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:
- Sign in to your Chase Mobile ® App
- Select the checking account you want to have Overdraft Protection
- Swipe up to view the rest of the page
- Select Overdraft protection
- Select Choose account
- Choose the savings account as the Overdraft Protection backup account for your checking account
- Select Done
- Review the Overdraft Protection Service Terms & Conditions and select your agreement
- 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:
- Sign in to your Chase Mobile ® App
- Select the checking account you want to have Debit Card Coverage
- Swipe up to view the rest of the page
- Select Debit card coverage
- Review the Chase debit card coverage Terms & Conditions and select your agreement
- Choose Coverage selection
- 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
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 Total Checking® - $300 Bonus
- New Chase checking customers enjoy a $300 bonus when you open a Chase Total Checking® account with qualifying activities
- Access to more than 15,000 Chase ATMs and more than 4,700 branches
- Chase Mobile® app - Manage your accounts, deposit checks, transfer money and more -- all from your device.
- JPMorgan Chase Bank, N.A. Member FDIC
- Open your account online now
- Available online nationwide except in Alaska, Hawaii and Puerto Rico. For branch locations, visit locator.chase.com.
- Chase Overdraft Assist℠ - no overdraft fees if you're overdrawn by $50 or less at the end of the business day or if you're overdrawn by more than $50 and bring your account balance to overdrawn by $50 or less at the end of the next business day*
Bank of America Advantage Banking - $200 Bonus Offer
- The $200 bonus offer is an online only offer and must be opened through the Bank of America promotional page.
- The offer is for new checking customers only.
- Offer expires 5/31/2024.
- To qualify, open a Bank of America Advantage Banking account through the promotional page and set up and receive qualifying direct deposits totaling $2,000 or more into that new account within 90 days of opening.
- Bank of America will attempt to pay bonus within 60 days.
- Additional terms and conditions apply. See offer page for more details.
- Bank of America, N.A. Member FDIC.
U.S. Bank Smartly® Checking and Standard Savings - Up to $700 Bonus
Earn up to $500 with a new Bank Smartly Checking account. Complete the following within 90 days of account opening:
- Enroll in online banking or the U.S. Bank Mobile App
- Make two or more direct deposit(s) totaling $3,000 to $4,999.99 to earn $100, $5,000 to $9,999.99 to earn $300 or $10,000 or more to earn $500
Earn up to $200 with a new Standard Savings account.
- Make new money deposit(s) totaling $15,000 or more by July 17, 2024
- Maintain that balance until October 31, 2024
Offer may not be available if you live outside of the U.S. Bank footprint or are not an existing client of U.S. Bank or State Farm.
Personal Checking Account - $200 Bonus
Open an eligible Fifth Third checking account. Make direct deposits totaling $500 or more within 90 days of account opening to qualify for bonus. The cash bonus will be deposited into your new checking account within 10 business days of completing qualifying activity requirements.
Online Savings Account - Earn 4.25% APY
- No fees
- No minimum opening deposit
- No minimum balance required
Amber Kong is a content specialist 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.
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