Banks that let you overdraft at ATM

Banks that let you overdraft at ATM

Banks usually require their customers to wait several months from the time they obtain the account before allowing them to withdraw funds overdrawn at ATMs.

Many banks provide their customers with the option of overdraft, which allows them to withdraw or spend more money than what is currently available in their checking accounts. This may lead to a negative balance, but it can be beneficial when a customer has to make a payment or purchase but lacks the necessary funds in their account.

When a transaction exceeds the available balance in the account, the customer will get help from the bank to pay for his purchases by granting a "loan" to the buyer. In this way, the customer can buy what they need even if they have no funds in their account, but the bank will apply additional interest rates and fees to the negative balance.

Banks don’t grant this option to any of their customers. Still, the person must meet a series of requirements to be eligible to overdraw immediately, so you should know the conditions of your bank well so you don’t get involved in situations without knowing the bank's policies.

Overdraft Protection

Overdraft protection is a service bank offer to prevent overdraft fees and allow transactions to be completed even when insufficient funds are available in the account. This protection is a momentary relief for the customer, who should be aware that while they can pay for purchases, they will be charged an overdraft protection fee even if there isn’t enough money in the account.

That is, when an account holder makes a transaction and doesn’t have sufficient funds to cover it, the bank may pay the amount of money missing to complete the payment and allow the transaction to go through successfully. Instead of returning the price and charging an overdraft fee, the bank will cover the shortfall and set the account holder a fee for overdraft protection.

Some banks may provide more extensive protection, while others may limit it to smaller amounts, so it is essential to keep in mind that overdrafts aren’t free. We want to emphasize this feature so you don't get a surprise later and see an "extra" amount on your bank statement. Remember that if you are going to make a purchase and you can’t pay the total amount of the product, you won’t be able to benefit from the bank overdraft if you haven’t previously requested this option.

Top banks that let you overdraft at ATMs

Most banks offer this option to customers who have a checking account. Your customers can withdraw more money than is available in the account through ATMs. However, the availability of this service varies depending on the bank and the type of account.To that end, we have compiled a list of the best banks that let you overdraft at ATMs.

1. Capital One

The overdraft options are only available for customers with 360 Checking, Total Control Checking, and Simply Checking accounts. It's worth noting that Capital One has ceased charging for overdraft protection for checking account holders as of 2021. Capital One Overdraft coverage applies to various payment types, including check payments, electronic payments (like utility bills), debit card payments, and ATM withdrawals. If the balance in the account becomes positive before the end of the next business day, no overdraft fee will be applied.Overdraft options with Capital One are as follows:

· Next Day Grace: Customers are given until the following business day to deposit or transfer funds to cover any potential overdraft.

· Line of credit: A line of credit can be linked to a customer's checking account. In an overdraft, the line of credit will automatically transfer funds and cover the overdraft amount.

· Link accounts: Capital One customers can link their checking accounts with other accounts, such as savings or credit cards, to access the overdraft protection service. If you spend more than you have in your account, they transfer funds from another account to cover it.

With Capital One, you can earn a competitive APY of 0.10% and access its free ATM network of more than 70,000 Capital One®, MoneyPass, and Allpoint® ATMs.

Learn more about Capital One Overdraft Coverage.

2. Chase

Unlike Capital One, Chase has not eliminated overdraft fees but has lowered fees and limits to give customers a wider margin when overdrafting. Chase is one of the banks with the most perks, and you can access several accounts (such as Chase College Checking or Chase Total Checking) that offer overdraft protection as an extra service. There are two alternatives for an overdraft: standard overdraft practice, which covers automatic payment and checks transactions, and debit card coverage, which covers ATM and debit card transactions.

While the overdraft is optional, the customer must request this option before being able to use it. If your account balance is overdrawn by an amount exceeding $50, Chase will charge a fee of $34 per transaction during our nightly processing. This fee will be reflected in your account statement.

Learn more about Chase Overdraft Coverage.

3. Axos

Axos Bank is an online bank that offers no overdraft fees, no monthly fees, and up to 3.30% APY.Axos applies an Annual Percentage Rate of 18% on fees associated with overdraft lines of credit. Additionally, if an overdraft is due to an automatic electronic transfer, you will be charged $25, limited to a maximum of three daily fees.

You can prevent an overdraft fee if your balance drops to less than negative $25. Axos Bank allows you to immediately overdraft with proper authorization and avoid incurring any overdraft fees.

Learn more aboutAxos Overdraft Coverage.

4. PNC

There are two types of overdraft services offered by PNC Bank: Standard Overdraft Coverage applies to checks, automatic bill payments, and other transactions with your checking account number. PNC may cover your overdraft transactions but will charge you a $36 overdraft fee.

On the other hand, PNC provides Overdraft Protection Service for checks, automatic bill payments, and other transactions made with your checking account number. In this case, PNC will transfer funds from your linked account to cover the transaction. The bank charges a $10 fee per transfer, usually cheaper than the standard Overdraft Coverage fee.

Learn more about PNC Overdraft Coverage.

5. SoFi

SoFi does not charge overdraft fees and gives you two options for overdraft protection. You can choose overdraft protection at no cost if you have exceeded $50 in overdrafts, or you can transfer money from a savings account to your checking account to cover the negative balance.

SoFi grants up to 2.5% APY and charges no monthly fees and no minimum amount available. SoFi Checking and Savings members can earn up to $250 in direct deposits.Not just anyone can apply for a no-fee overdraft, but monthly deposits of more than $1,000and at least 10 transactions are required.

Learn more about SoFi Overdraft Coverage.

Other banks that offer overdraft coverage

Several banks allow customers to buy or pay for products or services even if they do not have money in their accounts. These "bank loans" are beneficial and help maintain monetary stability, but they can have consequences if they are not treated properly and repaid on time. If you are interested in knowing more about the Banks that let you overdraft at an ATM, we recommend you to check this article in allaboutcareers. However, we can’t mention all thebest U.S Banksthat offer the overdraft option (there are many), so we will list the ones with the most affordable rates, but generally, banks charge around $35 for daily overdrafts.


Overdraft fees



Wells Fargo


Bank ofAmerica


TD Bank


US Bank




FifthThird Bank


The Huntington National Bank


Types of Overdraft Fees

Most banks charge the same fee for each charge but may have different procedures for how and when these fees are charged. There are four types of charges for an overdraft: standard overdraft fee, non-sufficient funds (NSF) fee, overdraft protection fee, and extended overdraft fee.

Standard overdraft fee

A standard overdraft fee is a fee charged by banks or banking institutions when a customer's account does not have sufficient funds to perform a transaction, and the bank authorizes the transaction even though it does not have funds. That is, when a customer attempts to conduct a transaction, such as writing a check, making a debit card purchase, or initiating an electronic payment, and does not have sufficient funds in their account to cover the transaction, the bank may choose to cover the transaction and charge a standard overdraft fee. By setting this fee, the bank covers the transaction's cost and provides a temporary loan to the customer to cover the shortfall.

The specific amount of the standard overdraft fee varies among banks but is typically a flat fee per transaction of about $35. However, this varies by financial institution and type of account. For example, if a $50 debit payment is made with a $15 account balance, the bank may allow the transaction and charge a standard overdraft fee, usually around $35.

Extended Overdraft Fee

An extended overdraft fee is a charge imposed by banks when a customer's account remains overdrawn for an extended period. This fee is separate from the initial overdraft fee. In other words, when an account is overdrawn, and the negative balance is not resolved within a certain period, usually between 3 and 7 days, the bank may charge an extended overdraft fee. This fee is generally charged daily or monthly if the account remains overdrawn.

The extended overdraft fee is intended to incentivize customers to quickly recover the positive balance in their account, avoid prolonged overdrafts, and cover the additional costs arising from this situation.

Overdraft protection

An overdraft protection fee is a fee charged by banks for providing a system to help prevent overdrafts on customers' accounts. Overdraft protection is an optional service that customers can activate on their accounts to prevent transactions from being declined due to insufficient funds.

When a customer has overdraft protection activated, the bank can cover transactions that exceed the available balance in the account. If a customer attempts to make a transaction, such as writing a check or making a debit card purchase, and there are insufficient funds in the account, the bank will accept the transaction and cover the shortfall. In exchange for this service, the bank charges an overdraft protection fee.


A non-sufficient funds fee (NSF fee) is a fee charged by banks or financial institutions when a customer attempts to conduct a transaction but does not have sufficient funds in their account to cover the transaction. When a transaction, such as a check payment or debit card purchase, is made and insufficient funds are unavailable, the transaction is usually returned or declined, and the bank may charge an NSF fee.

The NSF fee is intended to cover the costs incurred by the bank for processing and handling the non-sufficient funds transaction. The fee amount varies among banks and financial institutions but is usually fixed per transaction. Generally, NSF fees range from $25 to $40, although the specific fee may be higher or lower depending on the bank's policies.

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