Managing Bank Overdrafts

The average overdraft fee is $35. The average customer who pays one pays seven a year. Both numbers drop to zero with three changes.

Opt out of overdraft 'protection'

Federal Reg E lets you opt out of debit-card overdrafts. Your card is simply declined instead of triggering a $35 fee. Call your bank or change it in app settings.

Switch to a no-overdraft account

Chime, Ally, Capital One 360, Varo, and most credit unions either don't charge overdraft fees or cap them. Switching takes 20 minutes.

The fee-reversal script

Call your bank and say: 'I noticed a $35 overdraft fee on [date]. I've been a customer for [N] years and this is unusual for my account. Can you reverse it as a one-time courtesy?' Banks reverse 1–2 overdrafts per year for accounts in good standing.

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Reviewed by Jeff Arlintogs. See our fact-checking policy.

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