Sometimes, the account holder gets a hit of overdraft fees while checking his billing statement or online banking interface. Are you one of them? According to the report of FDIC, In 2017, Banks collected up to $11 billion for overdraft fees. Here banks mean the Ten largest banks only, it does not include local street banks of America. Usually, American banks charge an average of $33 as overdraft fees per day even though the transaction/s cost up to $3.00. These discourage overdrafts as part of a credit system. Such hectic overdraft fees create financial and emotional pressure on the checking account holder. Let us know about “How To Get An Overdraft Fee Waived?”
Many users don’t know that they can waive overdraft fees. First, One must understand the meaning of Overdraft and Overdraft Fees.
What Is An Overdraft?
In general, When a user swipes his card or writes a check/s for an amount more than the deposited balance in his bank account to pay for certain transaction/s, that is referred to as overdrawing from your account. Overdraft is like lending of money by a bank to an account holder.
What Are Overdraft Fees?
The charges charged by the banks when the account holder overdraws money for payment are called overdraft fees. Banks charge overdraft fees when the account balance falls to zero. However, Some banks only charge such fees when the account balance falls to -$5.00.
One Can Waive His Overdraft Fees, How? By Using The Following Steps:
• Contact to agent/customer service line: One should try to contact the agents or customer service line number( it is generally written on the back of a debit card or credit card in case of some banks) and ask them to waive overdraft fees.
• Be polite and explain the reason: Accountholder must explain the background for overdraft. The reason for the same can be a delay in deposit, a charge that landed sooner than you expected, unexpected heavy payments for credit card bills, etc. If you are a loyal customer of the bank for a while, that will make a valid point for argument. Generally, banks value their loyal customer more than such fees, so banks often waive overdraft fees for such customers who are not frequent overdrafters. Politeness while talking will help you to get your work done easily.
• Ask for a supervisor: Many times, If the agent says he is not authorized to work on your request, that means it is not under his control, But, In some rare cases, Some agents are vindictive, and He will not work for your request because of his intentions. In such a case, ask for a talk with another person and communicate your issue with the concerned person.
• Visit the branch: Sometimes, A visit to the bank to get your request done also helps. Physical appearance will increase the chances for prompt work.
Recently, an Economic recession due to the Covid-19 pandemic has arisen, leading various banks to waive off overdraft fees of their customers which amounted to billions. There are some banks also that don’t charge overdraft fees, which are those banks? Read as follows.
Are There Any Banks That Don’t Charge Overdraft Fees?
Yes! Some banks charge low or zero overdraft fees for their customers. The list of such banks is as follows:
A)Alliant Credit Union
From the year 2021, Alliant Credit Union will not charge overdraft fees. This credit union provides a program called the’ Courtesy Pay program’.To qualify for the program, One must deposit $600 within the past 30 days. Under this program, Alliant Credit Union completes the transactions which otherwise would have failed due to the insufficient balance.
During the Covid-19 pandemic, Ally bank was one of those banks that eliminated Overdraft fees for their customers. Later on, These changes have been made permanent by the Ally Bank.No Overdraft Fees have to pay for the Overdraft up to $250 to the bank customers
Other banks like Bank of America, Capital One Financial Corporation, etc. also don’t charge their customers for overdraft fees
Frequently Asked Questions
1) How to avoid Overdraft fees in the first place?
Answer: You can avoid such fees by linking your checking account to a savings account, Credit card, etc. Your bank will use the money to pay for transactions that overdraw your checking account. Many banks provide such services for some charges.
2) How should one request a bank set up for mobile banking alerts?
Answer: There is also another option for avoiding overdraft fees. This option is generally provided free of cost by many banks. All you need to do is confirm your mobile phone number and opt in for the service. When the account balance is about to reach zero level, the bank notifies the user by text message.