Although an overdraft can be helpful when the money in your account is not enough to pay for purchase; the fee applied to it can also come as a surprise when you least expect it. However, if you might find yourself in this situation of insufficient funds with a Stach Card then the next option is to request an overdraft from the company. But, would the company accept this request? In this article, we will see about ‘Can You Overdraft Stash?’.
Can You Overdraft Stash?
The simple answer is no; you cannot overdraft Stash. Both Stash and its affiliated Green Dot Bank do not offer overdraft protection services like other banks in the United States because the fees applied are usually high with an average of $33.58 (approximately $34) found to be charged by banks in the US as an overdraft fee. Hence, Stash considers this fee expensive and decided to exclude overdraft protection services from its services.
For those not familiar with Stash, let’s quickly introduce the company to you.
What Is Stash?
Stash is a highly safe financial platform available in both web and mobile app versions to assist people in improving their Finance. The platform can save for retirement, make a budget, invest in stocks, and get financial advice and education. It currently has over 6 million users and charges a low monthly fee depending on the plan you have chosen; the platform operates on 3 plans – Stash Beginner ($1 per month), Stash Growth ($3 per month), and Stash+ ($9 per month).
So, that is what Stash does and how it operates. The next thing is to further explain what an overdraft is to those not used to the term.
What Is An Overdraft?
An overdraft is a situation whereby a bank user withdraws more than the amount in his bank account, usually available for current account holders. This causes a deficit (-) in his bank account and the bank charges an overdraft fee on such withdrawals. For instance, if Mr A has $30 in his account and wants to purchase a pair of shoes worth $50 then he will be granted an overdraft of $20 by his bank to complete the transaction.
A similar term to an overdraft is the “Non-Sufficient Fund” (NSF) which occurs in the same situation as an overdraft but in this case, the bank declines the request of the customer to pay more than he has in his account. In both situations, your bank will still charge a fee making an overdraft/NSF inconvenient to many bank users.
What Is The Average Overdraft Fee Charged In The US?
The average overdraft fee charged according to Stash is $33.58 which is approximately $34. This means that if you take an overdraft from a bank in the US that supports it then a total of about $34 is expected to be deducted from your account the next time you fund your account. This is quite high considering the amount you have collected as overdraft since an average of $34 is way higher compared to an overdraft of $20 collected by Mr A in our example.
Usually, most banks include details of their Overdraft Policy in the Overdraft Protection Services that customers opt in to make overdraft requests. However, many customers do not understand this policy but believe the words of the bank representatives that describe only the good sides of the program and hide the negative sides. Therefore, before you fully understand the Overdraft Policy of your bank before you opt for the Overdraft Protection Services of the bank.
What Happens If I Request An Overdraft From Stash?
If you request an overdraft from Stash, the request will be declined and you will get “an insufficient fund” notification. However, you will not be charged a Non-Sufficient Fund (NSF) fee unlike some other banks although the seller’s bank might charge you a return fee for an NSF transaction.
What Are The Benefits Of The No Overdraft Policy Of Stash?
It is obvious that banks that allow overdraft gains more than the customers as the overdraft fees are high. Therefore, the following can be said to be the benefits of the no-overdraft policy of Stash:
- It protects users from covering unnecessary fees
- It helps you save more
- It promotes budgeting
- It eliminates extravagancy among Stash customers
Other Fees That Are Not Allowed On Stash
Apart from overdraft and overdraft fees, Stash also helps its customers avoid paying the excessive fees charged by most banks in America. Some of these fees are:
1. ATM Withdrawal Fees
Stash allows its users to make free withdrawals using their Stash ATM cards in any of its affiliated banks such as Green Dot Bank. The platform has a wide network within the United States (US) with over a thousand in-network ATMs in the country. However, charges will be applied if you withdraw at out-of-network ATMs.
2. Account Maintenance Fees
Many users are not aware that banks charge account maintenance fees and this could be as high as the average of $10 to $12 charged by Bank of America, Chase, and Wells Fargo. Although some users get refunds after several complaints, it still does not stop the banks from charging it. However, Stash accounts are free from this fee.
The other fees that you will avoid as a Stash accounts users are the Teller fees and Paper fees.
Conclusion
It can be that the decision not to allow overdraft by Stash is to protect users against high fees which is a primary aim of the company. You should ensure there is enough money in your Stash account before purchasing any item at a store or on the internet.
This is why you need to have a budget before you leave your house; moreover, you can also create a budget on the Stash app. Overdraft Protection Services might look beneficial but the interest placed on them is just too high.
FAQ
- Does Stash take NSF?
No, Stash does not take NSF or Overdraft.
- Can I make payment with “insufficient fund” on Stash?
Making payments with the insufficient fund on Stash is still an overdraft and Stash does not allow this.
- Can I overdraft Green Dot Bank?
Both Stash and Green Dot Bank do not allow overdraft
