Customers are allowed to overdraft the US bank and can be done in different ways. The US bank sees the need for an overdraft service and provides an easy ground for their customers to enjoy the service with their affordable fees and clear overdraft policy. We will look more into these overdraft fees and policies of the US bank in some of the next sections.
However, if you are not familiar with getting an overdraft from a bank and do not know what it means or how it works. Let’s quickly explain this to help you decide if you should apply for one before moving on.
What Is An Overdraft And How Does It Happens?
An overdraft can be compared to lending money from a bank when the money in your account is not enough to pay for items you bought although an overdraft fee will be applied when you fund your account. In technical terms, you are said to have overdrawn your account with the bank. An overdraft can be further divided into two different types termed Permitted and Unplanned Overdraft.
A first type can also be called a “planned overdraft” and occurs when a limit is placed on the way you spend money from your account. On the other hand, and is said to be unplanned when you spend more than the amount in your account since you have opt-in for a service in your bank.
You can get an overdraft by linking another customer’s checking bank to your account and whenever you spend above the amount of money in your account, a deduction will be applied to the other account to cover up your deficit.
Now, that you know what an overdraft is and how it works, the next thing is to answer the question of the day.
Can You Overdraft US Bank?
As stated earlier, you can overdraft US bank if you have opt-in to the available programmes in the bank. The bank operates 3 types of overdraft services that are as follows:
Standard Overdraft Coverage
Standard Overdraft Coverage is applied when the available balance in your account is lesser than $1 and involves the bank making a check and balance on the transactions carried out when the available balance was $0. After this, a decision will be made on how to apply the overdraft fee. The following transactions are placed under this overdraft by the US banks:
• Bill payments that are automatic
• Recurring debit card transactions
• Transaction on your checking account and checks
You should know that these transactions are the only ones eligible for an overdraft; other types of transactions are not eligible to get you an overdraft, hence, you should check this before depending on your Overdraft Protection Service.
Cards Overdraft Coverage
The overdraft service is very simple and provides the customer with a yes or no option to decide on the application of the overdraft. This means that if you choose “yes”, you want an overdraft to be applied to the transactions done with your card immediately and vice versa.
This coverage applies charges on the following transactions:
• Every withdrawal is done on the ATM
• Card transactions (debit cards)
Overdraft Protection Coverage
This overdraft service has been explained earlier and works by linking another checking account to your account for an overdraft to be applied. You are allowed to link up to three (3) current accounts to your account depending on how much you will need to cover your expenses.
Each time you overdraw from the bank, the US bank looks into these linked accounts and balances up to your payment although an overdraft fee will still be applied by the bank. If the amount in these accounts is still not enough to cover your purchase, then the US bank will introduce the Standard Overdraft Coverage to balance up.
How Much Does The US Bank Charge as Overdraft Fee?
The fee of $36 is applied on an item of $5.01 by the US bank and can be charged a maximum of four times in a day regardless of the number of times you have overdrawn from the bank. However, all purchases of $5.00 or less made with an overdraft are not charged by the US bank.
Conclusion
The US bank allows its customers with current accounts to enjoy its Overdraft Protection Service under a convenient policy. The overdraft fee charged by the bank is quite affordable and can be waived if you are overdrawing at most $5 from your account.
Just show your interest to opt-in by going to one of the bank branches or on the Page on its website; you can also visit the website from your mobile banking app. There are several overdraft coverage services that you can choose from; hence, make enquiries before you opt-in for the service at the US.
What is an overdraft fee?
An overdraft fee is a charge by the bank when a customer is allowed to overdraw his account.
Do you have to opt-in to overdraft the US bank?
Yes, you have to confirm your interest in using the bank Overdraft Protection Service
Does the US bank charge for every overdraft?
It depends on the amount you are withdrawing. Charge on overdraft by the US begins from the withdrawal of $5.01 or higher with a fee of $36 applicable.
How do I set up an overdraft with U. S. Bank?
You can opt for the US Protection Service through your US mobile app, on the online banking website, or visit one of the bank’s branches around you.
