How To Get Overdraft Fees Refunded

Is your bank charging you excessive overdraft fees? This isn’t the first time that’s happened to you. The Center for Responsible Learning estimates that banks and credit unions charged overdraft fees totaling $11 billion in 2019. As it turns out, banks make a ton of money from these fees each year.

However, everything’s not lost. How To Get Overdraft Fees Refunded? For an overdraft fee, you may be able to get money back if you’re eligible. It’s possible to steer clear of these charges in the future by taking extra care with your financial activities. Let’s see whether it works for us.

Overdraft fees cost?

Attempting to spend more money than you have in your bank account usually results in overdraft fees, assuming you’re familiar with how they function. If you have $30 in your checking account and use your debit card to make a $40 purchase, you may be charged an overdraft or non-sufficient funds (NSF) fee. Overdraft and NSF fees may seem reasonable, yet the expense of them is a major source of aggravation for many people.

According to the Center for Responsible Learning, the average overdraft charge is $35, which is a lot more than a bank is required to pay for an overdraft. For some individuals, this may not seem like a lot, but for others, it may be really frustrating. Overdraft costs at some of the nation’s most well-known financial institutions are listed below (please note that most banks have a daily overdraft fee limit):

  • It costs $35 each purchase above $1 to use Bank of America.
  • If your account is more than $50 overdrawn at the end of the business day, you will be charged $34 per item.
  • For Citi, each item costs $34.
  • For any purchase costing more than $5, the US Bank charges a fee of $36.
  • Cash advance from Wells Fargo: $35 per item.

Even if you’ve only slightly overdrawn your account, you may be subject to overdraft fees, depending on your bank. There are several ways in which automated payments might overdraw your bank account, such as a $10-per-month membership to a service. Assume, for the sake of argument, that you overdraw your account by $35 by mistake. Unfair and aggravating at the same time. For the most part, though, these fees aren’t usually a deal-breaker.

Step-by-step instructions on how to recoup overdraft fees:

If you’ve already been charged an overdraft fee, you can no longer waive or avoid it. However, you still have the option of requesting a refund. Calling your bank is the most common way to get started. However, a few considerations should not be overlooked.
Overdraft fees can be repaid by following these four steps:

  1. Add up total costs

Getting all of your ducks in a row before making the phone call is all this is about. When it comes to overdraft fees, you need to know how much you were charged, why, and when. Calculating and categorizing your expenses also includes determining which transactions resulted in an overdraft in the first place.

The faster you can interact with a bank person with all of this information readily available, the better. Check your bank statements, whether in your online account or through postal statements, to discover your account transactions and fees.

  1. Prepare for the phone call

If you’re in the middle of a negotiation, speaking over the phone may not be the most pleasant experience for you. Having an idea of what you’re going to say before you call your bank is essential in this situation. As a result, you’ll have the self-assurance you need to successfully bargain.

Getting a refund for an overdraft charge is more likely if you’ve been a consistent client with no history of late or missed payments. When you make a phone call, be sure to provide this information and make your request in a clear and courteous manner. If it helps, you might prepare your speech in advance by going over it with a friend or family member.

  1. Contact your bank

Contact your bank when you’re ready. When requesting a refund for overdraft fees, phone calls are normally the best method, although it may also be feasible to send a secure message. Even while sending a secure message is a more convenient option, not every bank offers it or permits such requests to be made through text message.

You should call them right now if this is the case. To reach your bank’s general customer care department, call the number shown on your bank’s website or on your bank statement.

  1. Be persistent

Your overdraft charge may be refunded instantly if you talk with a customer service agent who agrees with your request (s). It’s possible that you’ll encounter some opposition. If that’s the case, don’t quit! A supervisor or another representative may be necessary if the agent you’re dealing with isn’t bending over backwards.

Keep in mind to mention your positive connection with the bank (if relevant) and to be polite in all of your communications with them. Because most banks don’t want to lose you as a customer, it’s crucial that you continue in making your demands known.

Tips for avoiding overdraft fees in the future

Your overdraft charge may be refunded instantly if you talk with a customer service agent who agrees with your request (s). It’s possible that you’ll encounter some opposition. If that’s the case, don’t quit! A supervisor or another representative may be necessary if the agent you’re dealing with isn’t bending over backwards.

Keep in mind to mention your positive connection with the bank (if relevant) and to be polite in all of your communications with them. Because most banks don’t want to lose you as a customer, it’s crucial that you continue in making your demands known.

Track your balance

You’re less likely to incur an overdraft fee if you’re aware of how much money you have in your account. If you have an online or mobile banking account, you can easily see how much money is in your account at any one time. You may also use a budgeting program like Simplifi to track your spending and create financial objectives at the same time, if you choose.

Turn off overdraft protection

Opt out of overdraft protection if you don’t want to pay penalties for going over your limit. A lender may use this measure to ensure that you can pay for your purchases even if you don’t have enough cash on hand. However, there are always costs associated with it.

If you don’t want to use overdraft protection, federal regulations enable you to do so. If you choose not to participate, your debit card transactions and ATM withdrawals will be denied if you do not have sufficient money, rather than resulting in an overdraft.

Set up alerts

For a more customized banking experience, you may often change notification and alert settings in online banking and mobile apps. When your bank account balance reaches a predetermined amount, you may set up an alert to notify you of the situation. Overdraft fees can be avoided if you get warnings when your account’s balance falls below a certain threshold.

The danger of an overdraft can be reduced by linking a backup bank account to your checking account. Another bank or savings account, a credit card and/or line of credit might all be included in this category

Switch banks

Think about switching banks if you don’t want to pay hefty overdraft fees, which may add up quickly. Our top-rated checking accounts don’t impose overdraft fees, which makes it simple to stay within your budget.

Which bank accounts can help you avoid overdraft fees?

Because they don’t charge overdraft fees, certain bank accounts make it simple to avoid them. Banks that don’t charge overdraft fees include the following:

Ally

Financial services offered by Ally Bank include checking and savings accounts, as well as CD accounts and investment alternatives. You won’t have to worry about monthly maintenance fees, low daily balance fees, ACH transfers, or overdraft fees with an Ally checking account. With the Allpoint network, you won’t have to worry about paying ATM fees.

Axos Bank

Besides checking and savings accounts, Axos Bank also offers investment possibilities, loans, and credit cards. In certain of its checking accounts, there are no monthly maintenance costs, no monthly balance restrictions, and no overdraft charges. Overdraft costs may apply if you wish to utilize the cashback checking account, which gives you cash back on your debit card.

Bottom line

However, if you’ve already been charged with an overdraft fee, you may get your money back if you know how to avoid it. In the unfortunate event that you’re charged an overdraft fee from a typical bank account, you’ll need to take the necessary safeguards and procedures to avoid it.

Doing business with a bank that doesn’t charge overdraft fees is an option if you don’t want to worry about them. Since there’s no way an overdraft will occur, this is the most effective method of avoiding them.

Is your bank charging you excessive overdraft fees? This isn’t the first time that’s happened to you. The Center for Responsible Learning estimates that banks and credit unions charged overdraft fees totaling $11 billion in 2019. As it turns out, banks make a ton of money from these fees each year.

However, everything’s not lost. For an overdraft fee, you may be able to get money back if you’re eligible. It’s possible to steer clear of these charges in the future by taking extra care with your financial activities. Let’s see whether it works for us.

Overdraft fees cost?

Attempting to spend more money than you have in your bank account usually results in overdraft fees, assuming you’re familiar with how they function. If you have $30 in your checking account and use your debit card to make a $40 purchase, you may be charged an overdraft or non-sufficient funds (NSF) fee. Overdraft and NSF fees may seem reasonable, yet the expense of them is a major source of aggravation for many people.

According to the Center for Responsible Learning, the average overdraft charge is $35, which is a lot more than a bank is required to pay for an overdraft. For some individuals, this may not seem like a lot, but for others, it may be really frustrating. Overdraft costs at some of the nation’s most well-known financial institutions are listed below (please note that most banks have a daily overdraft fee limit):

  • It costs $35 each purchase above $1 to use Bank of America.
  • If your account is more than $50 overdrawn at the end of the business day, you will be charged $34 per item.
  • For Citi, each item costs $34.
  • For any purchase costing more than $5, the US Bank charges a fee of $36.
  • Cash advance from Wells Fargo: $35 per item.

Even if you’ve only slightly overdrawn your account, you may be subject to overdraft fees, depending on your bank. There are several ways in which automated payments might overdraw your bank account, such as a $10-per-month membership to a service. Assume, for the sake of argument, that you overdraw your account by $35 by mistake. Unfair and aggravating at the same time. For the most part, though, these fees aren’t usually a deal-breaker.

Step-by-step instructions on how to recoup overdraft fees:

If you’ve already been charged an overdraft fee, you can no longer waive or avoid it. However, you still have the option of requesting a refund. Calling your bank is the most common way to get started. However, a few considerations should not be overlooked.
Overdraft fees can be repaid by following these four steps:

  1. Add up total costs

Getting all of your ducks in a row before making the phone call is all this is about. When it comes to overdraft fees, you need to know how much you were charged, why, and when. Calculating and categorizing your expenses also includes determining which transactions resulted in an overdraft in the first place.

The faster you can interact with a bank person with all of this information readily available, the better. Check your bank statements, whether in your online account or through postal statements, to discover your account transactions and fees.

  1. Prepare for the phone call

If you’re in the middle of a negotiation, speaking over the phone may not be the most pleasant experience for you. Having an idea of what you’re going to say before you call your bank is essential in this situation. As a result, you’ll have the self-assurance you need to successfully bargain.

Getting a refund for an overdraft charge is more likely if you’ve been a consistent client with no history of late or missed payments. When you make a phone call, be sure to provide this information and make your request in a clear and courteous manner. If it helps, you might prepare your speech in advance by going over it with a friend or family member.

  1. Contact your bank

Contact your bank when you’re ready. When requesting a refund for overdraft fees, phone calls are normally the best method, although it may also be feasible to send a secure message. Even while sending a secure message is a more convenient option, not every bank offers it or permits such requests to be made through text message.

You should call them right now if this is the case. To reach your bank’s general customer care department, call the number shown on your bank’s website or on your bank statement.

  1. Be persistent

Your overdraft charge may be refunded instantly if you talk with a customer service agent who agrees with your request (s). It’s possible that you’ll encounter some opposition. If that’s the case, don’t quit! A supervisor or another representative may be necessary if the agent you’re dealing with isn’t bending over backwards.

Keep in mind to mention your positive connection with the bank (if relevant) and to be polite in all of your communications with them. Because most banks don’t want to lose you as a customer, it’s crucial that you continue in making your demands known.

Tips for avoiding overdraft fees in the future

Your overdraft charge may be refunded instantly if you talk with a customer service agent who agrees with your request (s). It’s possible that you’ll encounter some opposition. If that’s the case, don’t quit! A supervisor or another representative may be necessary if the agent you’re dealing with isn’t bending over backwards.

Keep in mind to mention your positive connection with the bank (if relevant) and to be polite in all of your communications with them. Because most banks don’t want to lose you as a customer, it’s crucial that you continue in making your demands known.

Track your balance

You’re less likely to incur an overdraft fee if you’re aware of how much money you have in your account. If you have an online or mobile banking account, you can easily see how much money is in your account at any one time. You may also use a budgeting program like Simplifi to track your spending and create financial objectives at the same time, if you choose.

Turn off overdraft protection

Opt out of overdraft protection if you don’t want to pay penalties for going over your limit. A lender may use this measure to ensure that you can pay for your purchases even if you don’t have enough cash on hand. However, there are always costs associated with it.

If you don’t want to use overdraft protection, federal regulations enable you to do so. If you choose not to participate, your debit card transactions and ATM withdrawals will be denied if you do not have sufficient money, rather than resulting in an overdraft.

Set up alerts

For a more customized banking experience, you may often change notification and alert settings in online banking and mobile apps. When your bank account balance reaches a predetermined amount, you may set up an alert to notify you of the situation. Overdraft fees can be avoided if you get warnings when your account’s balance falls below a certain threshold.

The danger of an overdraft can be reduced by linking a backup bank account to your checking account. Another bank or savings account, a credit card and/or line of credit might all be included in this category

Switch banks

Think about switching banks if you don’t want to pay hefty overdraft fees, which may add up quickly. Our top-rated checking accounts don’t impose overdraft fees, which makes it simple to stay within your budget.

Which bank accounts can help you avoid overdraft fees?

Because they don’t charge overdraft fees, certain bank accounts make it simple to avoid them. Banks that don’t charge overdraft fees include the following:

Ally

Financial services offered by Ally Bank include checking and savings accounts, as well as CD accounts and investment alternatives. You won’t have to worry about monthly maintenance fees, low daily balance fees, ACH transfers, or overdraft fees with an Ally checking account. With the Allpoint network, you won’t have to worry about paying ATM fees.

Axos Bank

Besides checking and savings accounts, Axos Bank also offers investment possibilities, loans, and credit cards. In certain of its checking accounts, there are no monthly maintenance costs, no monthly balance restrictions, and no overdraft charges. Overdraft costs may apply if you wish to utilize the cashback checking account, which gives you cash back on your debit card.

Bottom line

However, if you’ve already been charged with an overdraft fee, you may get your money back if you know how to avoid it. In the unfortunate event that you’re charged an overdraft fee from a typical bank account, you’ll need to take the necessary safeguards and procedures to avoid it.

Doing business with a bank that doesn’t charge overdraft fees is an option if you don’t want to worry about them. Since there’s no way an overdraft will occur, this is the most effective method of avoiding them.

About the author: David Krug is the CEO & President of bankovia. He’s a lifelong expat who has lived in the Philippines, Mexico, Thailand, and Colombia. When he’s not reading about cryptocurrencies, he’s researching the latest personal finance software.