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.

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® - $300 Bonus

Expires 4/17/2024
  • 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
Member FDIC

Bank of America Advantage Banking - $200 Bonus Offer

Expires 5/31/2024
  • 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.
Citibank
Member FDIC

Enhanced Direct Deposit - Earn $300 Cash Bonus

Earn $300 cash bonus when you open a new eligible checking account with Enhanced Direct Deposit and complete required activities. Member FDIC

  • Open a new eligible Citi Checking account with Enhanced Direct Deposits
  • Deposit at least two Enhanced Direct Deposits directly into your new checking account within 90 calendar days from account opening.
  • Your total combined Enhanced Direct Deposit must equal $1,500 or more.
  • Earn a $300 cash bonus. Your cash bonus will be deposited to your open, eligible checking account within 30 calendar days after required activities have been completed.
Discover Bank
Member FDIC

Discover® Online Savings - $200 Cash Bonus

Expires 3/14/2024

To get your $150 or $200 Bonus: What to do: Apply for your first Discover Online Savings Account, online, in the Discover App or by phone. Enter Offer Code CY124 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 60 days of the account qualifying for the bonus. Bonus is interest and subject to reporting on Form 1099-INT. Offer ends 03/14/24, 11:59 PM ET. Offer may be modified or withdrawn without notice. See advertiser website for full details.

CIT Bank
Member FDIC

CIT Bank Platinum Savings - 5.05% APY

  • 5.05% APY with a balance of $5,000 or more
  • 0.25% APY with a balance of less than $5,000
  • $100 minimum opening deposit
  • No monthly maintenance fee
  • Member FDIC

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.

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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