Last updated: April 1, 2026
Overdraft fees shouldn’t leave you penalized. Here’s how to save on them and reclaim control over your money.1
What exactly are overdraft fees?
An overdraft fee happens when a bank covers a payment that exceeds your available balance—think debit card purchases, automatic payments, or checks—and then charges you for the service.
According to the Consumer Financial Protection Bureau (CFPB), many banks charge $30 or more for an overdraft fee. And it’s possible to get more than one a day. Yikes!
How to avoid or save on overdraft fees
If you can’t find a checking account with no overdraft fees, here are three tips from the CFPB on how to lower your chances of getting hit with them.1
- Track your account and set alerts. Regularly check your balance, especially before tapping your debit card or letting an automatic payment go through. Setting low-balance alerts can help you catch issues early.
- Use overdraft protection options. Link a savings account or backup checking account to cover shortfalls. Or make the switch to an overdraft protection app.
- Opt out of overdraft coverage. For debit card or ATM transactions, you can choose to opt out of overdraft protection. That way, transactions are declined if there’s not enough money. No fees and no surprise charges.
The best way to navigate overdraft fees is to keep enough money in your account. If you’re running low, you could pocket up to $500 with ExtraCash® from Dave.3 ExtraCash® gives you the peace of mind of an overdraft protection app. You could keep your bank account from going empty and don’t have to worry about hidden fees. Just download the Dave app, link your bank, and open an ExtraCash® account to get started.