How to Get an Overdraft Fee Refunded: 3 Easy Options
Overdraft fees happen. It could be due to an unexpected expense, one too many ATM withdrawals, or a bill that was on autopay you forgot about. No matter what causes your overdraft charges, logging into your account and seeing one or more fees can be stressful.
However, you shouldn’t worry yet. When it comes to overdrawn accounts, you may have options — especially if you’re a loyal customer with a good banking history. Keep in mind that getting an overdraft fee waived isn’t guaranteed, but here are a few things you can try.
Ways you may be able to get an overdraft fee refunded.
1. Check your bank’s overdraft policy.
When trying to get a fee removed from your bank account, it’s important to review your financial institution’s policy around fees. Every bank or credit union will have different rules, and knowing them can help.
You may be able to find information on your bank’s website or in the documents you signed when you opened your checking account. Keep an eye out for waivers for first-time occurrences. Plus, you may also find that your bank automatically forgives overdrafts if certain conditions are met. Arming yourself with this knowledge can help if you end up needing to call customer support.
2. Fix the account during the grace period.
Many banks don’t charge an overdraft fee immediately after you overdraw your account. This grace period allows you time to transfer funds to your negative account without incurring a fee. This money could be from a savings account, another deposit account or even a line of credit.
For example, if you quickly recognize an overdraft on your checking account and then log in to transfer funds from your savings, you may be able to avoid being charged an overdraft fee at all. However, this may not be offered at every financial institution and the grace period window could be anywhere from a few hours to a few days.
3. Contact your bank.
If you missed the grace period, or your bank doesn’t provide one, don’t worry — there’s still hope. Sometimes the simplest way to get an overdraft fee forgiven is to contact customer support directly and explain the situation.
If you have a good banking history and overdrafts and other fees aren’t a common occurrence for you, you should ask for it to be waived.They may also allow an overdraft fee refund if there were extenuating circumstances or if you can show it was an error by the bank.
What to do if you can’t get the overdraft fee waived.
It’s not guaranteed that you will be able to get a bank overdraft fee waived, but there are still a few things you can do to help minimize its impact on your personal finances.
Ask the bank to reduce the fee. If your bank won’t waive the fees completely, see if they would be willing to reduce the cost of the fees. While they may not be able to, it doesn’t hurt to ask.
Consider switching banks. There are banks out there that don’t charge overdraft fees or non-sufficient fund fees. Consider looking into other options if your current banking relationship isn’t a fit.
Get inspired to take control. You can take this opportunity to learn about budgeting and other tools like overdraft protection and account balance alerts. Together, these can help you make sure you have enough money in your account.
How can I avoid overdraft fees?
Sign up for overdraft protection.
Banks charge overdraft fees when you make a purchase but have insufficient funds in your account, causing it to go negative. Overdraft protection allows you to link a second account (this may be a savings account, checking account, line of credit or a credit card). This means when you make a purchase without enough funds in your account, the money will automatically be pulled from the other account.
Set up account balance alerts.
Account balance alerts can notify you when your available balance dips below a certain level. These alerts may be text messages, emails or app notifications. If you swipe your debit card and your account balance falls below the balance you set, you’ll be notified. This can be a sign to stop spending or to transfer funds.
Create a budget.
Creating a monthly budget can help you keep track of your spending and ensure your dollars are going where you want them to go. A good place to start is by looking over your monthly bank statements to see how much you’re currently spending on monthly necessities. From there, you can divide up the remaining funds to go toward savings and paying off debt, and any money left can be used for fun or discretionary spending. This helps ensure your money is going toward what matters most to you.
Find a bank that doesn’t charge overdraft fees.
One of the easiest ways to avoid overdraft fees is by finding a bank that won’t charge you in the first place. Many banks are beginning to do away with overdraft fees. Do some research to find one that may be right for you. You can look for other features that suit your needs just as well, such as savings accounts with high interest rates and online banking capabilities.
The Bottom Line
Getting overdraft fees waived is possible, though not guaranteed. It’s important to understand your bank’s policies and take quick action to minimize the impact they have on your finances. Remember to take advantage of grace periods and give customer support a call. You can also implement preventative measures like setting up balance alerts or creating a budget to help ensure you don’t get charged again.
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