Chase lets you overdraft, but only if you have overdraft protection turned on
Chase will not automatically overdraft your account. By default, transactions that would take your balance below zero are declined at the point of sale or ATM. If you want Chase to cover the shortfall instead—paying the overdraft fee and letting the transaction go through—you have to opt in to overdraft protection.
There are two ways to get overdraft coverage at Chase: link a savings account or money market account to your checking account, or enroll in Chase's overdraft service. The linked account method is free; the overdraft service charges a fee per overdraft (currently $35 per transaction at most Chase branches, though this varies). If you have overdraft protection through a linked account and that account runs dry too, Chase will then decline the transaction.
If you do not have overdraft protection and a transaction would overdraft you, Chase declines it. You will not be charged an overdraft fee, but the transaction fails. Some merchants may charge you a fee for the declined transaction on their end.
Key Takeaways
- Chase overdraft protection is opt-in; your account will not overdraft without your permission, and transactions will be declined instead.
- You can link a savings or money market account to cover overdrafts for free, or enroll in Chase's overdraft service and pay $35 per overdraft.
- Chase will overdraft you up to a limit (typically $100 to $500 depending on your account history and relationship with the bank), not unlimited amounts.
- Overdraft fees are charged per transaction, so multiple overdrafts in one day can result in multiple fees.
- You can turn overdraft protection off at any time through your Chase app, online banking, or by calling customer service.
How much can you overdraft, and what are the limits
Chase does not publish a fixed overdraft limit. Instead, the amount you can overdraft depends on your account history, your relationship with Chase, and how long you have held the account. New accounts typically have lower limits or no overdraft cushion at all. Customers with longer account histories and consistent deposits may have limits ranging from $100 to $500 or higher.
You will not know your exact overdraft limit unless you ask Chase directly. The easiest way is to call the customer service number on the back of your debit card or log into your Chase app and look for account details. Some customers discover their limit only when a transaction is declined despite overdraft protection being on—meaning they have hit the ceiling.
If you overdraft beyond your limit, the transaction is declined. If you overdraft within your limit, you are charged the overdraft fee and the transaction goes through. The fee applies per transaction, not per day, so if you make three overdrafted purchases in one day, you pay three fees.
Overdraft fees and how they add up
Chase charges $35 per overdraft transaction for most checking accounts. This fee is deducted from your account immediately or within one business day. If your account is already negative and you are charged an overdraft fee, your balance goes more negative.
Chase also has a non-sufficient funds (NSF) fee, which is charged when a transaction is declined because you do not have enough money and do not have overdraft protection on. This fee is also $35 at most branches. The difference: an overdraft fee means the transaction went through; an NSF fee means it did not.
If you overdraft and then deposit money before the fee posts, the fee still applies—it is not waived because you corrected the balance. However, if you catch the overdraft quickly, some Chase branches will reverse one overdraft fee per year as a courtesy. This is not may provide and depends on your account history and the branch manager's discretion. Call customer service and ask; the worst they can say is no.
How to turn overdraft protection on or off
You can manage overdraft protection through the Chase mobile app or online banking. Log in, go to your checking account settings, and look for "Overdraft Protection" or "Overdraft Options." From there you can enroll in overdraft service, link a savings account, or turn protection off entirely.
If you prefer to call, dial the number on the back of your debit card and ask to speak with someone about overdraft protection. They can walk you through the options and make changes on the phone. Changes usually take effect within one business day.
Turning off overdraft protection means transactions will be declined if you do not have the funds. You will not be charged overdraft fees, but you also will not be able to spend money you do not have. This is the safest option if you want to avoid fees entirely.
Using a linked savings account instead of overdraft service
If you have a Chase savings account or money market account, you can link it to your checking account to cover overdrafts. When a transaction would overdraft your checking account, Chase automatically transfers money from the linked account to cover it. This transfer is free.
The catch: if your savings account does not have enough money to cover the overdraft, the transaction is declined and you are not charged an overdraft fee (because overdraft protection through a linked account does not charge fees). However, some merchants may still charge you a fee for the declined transaction.
This method works well if you keep a buffer in savings. It costs nothing and prevents overdraft fees. If you do not have a savings account yet, you can open one at any Chase branch or through the app in a few minutes.
What happens if you stay overdrawn for days or weeks
If your account stays negative and you do not deposit money to bring it back above zero, Chase will eventually close the account. The timeline varies, but most banks close accounts that remain overdrawn for 30 to 60 days. Before closure, Chase will send you notices (usually by mail and email) asking you to bring the account current.
While the account is overdrawn, you continue to accrue overdraft fees on any transactions that post. If you make a deposit that brings your balance positive, the overdraft fees are deducted first, and the remaining deposit goes into your account. If you make a deposit that does not fully cover the overdraft and fees, your account is still negative.
Once Chase closes your account for being overdrawn, the negative balance becomes a debt you owe Chase. They may pursue collection or report it to ChexSystems, a banking history database that makes it harder to open accounts at other banks. If you have an overdrawn account, contact Chase as soon as possible to work out a payment plan or settlement.
Overdraft protection and ATM withdrawals
Overdraft protection applies to ATM withdrawals the same way it applies to debit card purchases. If you try to withdraw more than your balance and have overdraft protection on, Chase will allow the withdrawal and charge you an overdraft fee. If you do not have overdraft protection, the ATM will decline the withdrawal.
ATM overdrafts are particularly easy to miss because there is no receipt showing the fee, and the withdrawal happens instantly. Check your account balance in the app before using an ATM, or turn off overdraft protection if you want the ATM to decline rather than charge you.
Frequently Asked Questions
Can I overdraft my Chase account at an ATM?
Yes, if you have overdraft protection on. The ATM will allow the withdrawal and charge you a $35 overdraft fee. If you do not have overdraft protection, the ATM declines the withdrawal. Check your balance in the app before withdrawing to avoid surprises.
What is the difference between overdraft and NSF fees?
An overdraft fee is charged when a transaction goes through despite your account being negative; an NSF (non-sufficient funds) fee is charged when a transaction is declined because you do not have the money. Both are $35 at most Chase branches. Overdraft requires protection to be on; NSF happens when it is off.
Will Chase reverse an overdraft fee if I ask?
Chase may reverse one overdraft fee per year as a courtesy, depending on your account history and the branch. Call customer service and ask; there is no may provide, but it is worth trying if this is your first overdraft or if you have been a customer for a long time.
Can I overdraft my Chase savings account?
No. Overdraft protection is only available on checking accounts. Savings accounts do not have overdraft service. If you try to withdraw more than your savings balance, the transaction is declined.
How do I know if I have overdraft protection turned on?
Log into your Chase app or online banking, go to your checking account settings, and look for "Overdraft Protection" or "Overdraft Options." You can also call the number on your debit card and ask customer service whether overdraft protection is active on your account.