Overdraft fees can drain your account fast—often $35 per charge. One transaction can trigger a chain of fees that adds up quickly and makes it harder to recover.
Fortunately, most overdraft fees are preventable. With a few smart habits and the right account settings, you can stay ahead of your balance and avoid unnecessary charges.
10 Smart Ways to Avoid Overdraft Fees
The following are ten strategies that can help you avoid overdraft fees on your checking account.
1. Set Up Alerts and Monitor Your Balance Often
The easiest way to avoid overdraft fees is to know where your balance stands. Set up low-balance alerts through your bank’s app so you get notified before your account goes negative.
Make it a habit to check your balance regularly using online or mobile banking. A quick glance can help you catch potential problems before they turn into costly fees.
2. Keep a Small Buffer to Cover Surprise Expenses
Keeping a little extra in your account—say $50 to $100—can help protect you from accidental overdrafts. This buffer acts as a cushion when timing or small miscalculations throw off your balance.
Even if money is tight, building in a safety net gives you more control and peace of mind. Start small and adjust as your finances improve.
3. Turn Off Auto-Pay to Stay in Control
Automatic payments can backfire if your balance is low. A scheduled charge could hit your account at the wrong time and trigger an overdraft fee.
Consider switching to manual payments for bills that don’t have strict due dates. It gives you more control and helps you avoid charges when your account is running low.
4. Consider Opting Out of Overdraft Coverage
Overdraft protection lets transactions go through even if you don’t have enough money—but it often comes with high fees. That convenience can add up quickly.
You can ask your bank to turn this feature off. Many allow you to opt out online or by calling customer service. Once it’s off, transactions that exceed your balance will be declined instead of costing you more in fees.
5. Switch to a Bank That Doesn’t Charge Overdraft Fees
Some banks have eliminated overdraft fees entirely. If your current bank charges you often, it may be time to switch.
Online banks are a good place to start—they tend to offer fewer fees and better digital tools. Before signing up, check for other costs like ATM fees or monthly charges so there are no surprises.
6. Set Up Low-Balance Alerts
Most banks let you set up alerts that notify you when your balance drops below a certain amount. It takes just a minute and can help you catch issues before they turn into overdraft fees.
Use your bank’s app or online portal to customize alerts based on your comfort zone—whether that’s $100 or $10.
7. Move Money Quickly to Cover an Overdraft
If your account is showing a negative balance, act fast. The sooner you deposit or transfer money, the more likely you are to avoid added fees.
Use mobile deposit, transfer from a linked account, or send money through a payment app. Just make sure the transfer is enough to cover both the overdraft and any pending charges.
8. Link Savings to Your Checking for Backup
Many banks let you link your savings account to your checking account. If your checking balance runs low, the bank will automatically pull money from savings to cover the difference.
This can help you avoid overdraft fees—as long as you keep enough in savings to cover the transfer. Some banks may still charge a small fee, so read the terms before setting it up.
9. Ask Your Bank to Waive the Fee
If you’ve been charged an overdraft fee, it doesn’t hurt to ask for a refund. Many banks will waive a fee as a one-time courtesy—especially if you rarely overdraw your account.
Be direct, explain what happened, and ask clearly for the fee to be removed. A polite phone call can save you $35 in minutes.
10. Use Prepaid Cards to Avoid Overdrafts Completely
Prepaid debit cards only let you spend what you load onto them, which means no overdrafts. They can be a good alternative if you’ve struggled with account fees.
Just watch out for monthly fees or reload charges. Compare a few options to find a prepaid card that keeps costs low and works with how you spend.
Here’s a list of the top prepaid cards for 2025.
Frequently Asked Questions
What is an overdraft fee?
An overdraft fee is a fee that banks or credit unions charge when you spend more money than you have in your account, and your account goes into negative territory.
How much do overdraft fees typically cost?
Overdraft fees vary by financial institution, but the average overdraft fee is around $35 per transaction. Some banks charge a daily fee as well, which can add up quickly.
What should I do if I can’t avoid an overdraft fee?
If you can’t avoid an overdraft fee, try to pay it off as soon as possible to avoid additional fees. If you’re having trouble with overdrafts on a regular basis, consider talking to a financial advisor or credit counselor for help managing your finances.
Which banks don’t have overdraft fees?
There are several checking accounts that don’t charge overdraft fees, including Chase, Current, and SoFi. However, while these banks may not charge overdraft fees, they may still have other fees associated with their accounts.
For example, they may charge monthly maintenance fees, ATM fees, or transaction fees. Be sure to review the fee schedule of any checking account you are considering to ensure that you understand all associated costs fully.
What are NSF fees, and how do they differ from overdraft fees?
NSF fees—short for non-sufficient funds—are charged when your bank rejects a transaction because there isn’t enough money in your account to cover it.
Overdraft fees happen when the bank allows the transaction to go through, putting your account into a negative balance. With NSF fees, the payment gets declined. With overdraft fees, the payment clears—but you owe the bank.
